Following the Federal Reserve’s recent decision to cut interest rates, major U.S. stock indexes have seen a slight decline as investors process the implications for future economic growth and inflation control. With that in mind, identifying growth companies with high insider ownership can be particularly attractive to investors seeking stability and an alignment of interests between company management and shareholders. A good stock in today’s market often combines robust growth potential with significant insider ownership, indicating confidence among those closest to the company’s operations. Here are three U.S. growth companies that embody these characteristics and offer promising prospects for long-term investing.

The 10 largest growth companies with high insider ownership in the USA

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Simply Wall St Growth Rating: ★★★★★☆

Overview: Harrow, Inc. is an ophthalmic pharmaceutical company focused on the discovery, development and commercialization of ophthalmic products and has a market capitalization of $1.55 billion.

Operations: Harrow’s revenues total $154.15 million primarily come from the discovery, development and commercialization of innovative ophthalmic therapies.

Insider ownership: 14.3%

Harrow’s earnings are expected to grow 78.4% annually, with revenue expected to grow 33.3% annually, outperforming the U.S. market. Although Harrow trades 73.9% below its estimated fair value, the company remains highly volatile and reported a net loss of $6.47 million for the second quarter of 2024. Recent presentations at major conferences and new product agreements underscore ongoing efforts to expand its presence in the healthcare sector.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Astera Labs, Inc. designs, manufactures and sells semiconductor-based connectivity solutions for cloud and AI infrastructures with a market capitalization of $7.26 billion.

Operations: Astera Labs generates revenue of $229.55 million from its semiconductor-based connectivity solutions for cloud and AI infrastructures.

Insider ownership: 18.1%

Astera Labs’ revenue increased to $76.85 million in the second quarter of 2024 from $10.69 million a year ago, while net loss narrowed significantly. The company forecasts revenue between $95 million and $100 million for the third quarter of 2024. Despite high volatility, Astera Labs is trading 30.9% below its estimated fair value and expects to become profitable within three years. Insiders have been buying more shares than selling recently, indicating confidence in the company’s growth trajectory.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Ibotta, Inc. (NYSE: IBTA) is a $1.85 billion technology company that provides the Ibotta Performance Network (IPN), enabling consumer packaged goods brands to deliver digital promotions to consumers.

Operations: The company’s revenue comes primarily from Internet software and generates $355.21 million.

Insider ownership: 18.8%

Ibotta’s earnings are expected to grow 68.4% annually over the next three years, significantly outperforming the U.S. market. Despite a recent net loss of $33.97 million in the second quarter of 2024, revenue increased to $87.93 million from $77.39 million a year earlier. The company announced a share buyback program worth up to $100 million and entered into a strategic partnership with Instacart to increase its growth potential and market reach by integrating digital coupons.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. This is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not own any shares in the stocks mentioned. The analysis only considers shares held directly by insiders. It does not include shares held indirectly through other vehicles such as corporations and/or trusts. All forecasted sales and earnings growth rates refer to annualized (per year) growth rates over 1-3 years.

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