In May 2024, the Australian Securities Exchange (ASX) is currently experiencing a slight downturn, with most sectors showing declines except for materials. This emphasizes the importance of employing cautious investment strategies during such times. Stocks with high insider ownership can be particularly attractive as they often indicate strong confidence from management and major stakeholders in the company’s future prospects, which can be beneficial in navigating through the current market conditions.
Here are the top 10 growth companies with high insider ownership in Australia:
1. Hartshead Resources (ASX:HHR) – Insider Ownership: 13.9%, Earnings Growth: 86.3%
2. Cettire (ASX:CTT) – Insider Ownership: 28.7%, Earnings Growth: 29.9%
3. Gratifii (ASX:GTI) – Insider Ownership: 15.6%, Earnings Growth: 112.4%
4. Acrux (ASX:ACR) – Insider Ownership: 14.6%, Earnings Growth: 115.3%
5. Doctor Care Anywhere Group (ASX:DOC) – Insider Ownership: 28.4%, Earnings Growth: 96.4%
6. Hillgrove Resources (ASX:HGO) – Insider Ownership: 10.4%, Earnings Growth: 45.4%
7. Alpha HPA (ASX:A4N) – Insider Ownership: 28.3%, Earnings Growth: 95.9%
8. Liontown Resources (ASX:LTR) – Insider Ownership: 16.4%, Earnings Growth: 63.9%
9. SiteMinder (ASX:SDR) – Insider Ownership: 11.4%, Earnings Growth: 69.4%
10. Plenti Group (ASX:PLT) – Insider Ownership: 12.6%, Earnings Growth: 68.5%
Emerald Resources NL is one of our top picks based on insider ownership, with 18.5% ownership. The company has shown strong growth, with earnings increasing by 53.4% in the past year and an expected annual growth rate of 22.8%. Despite its strong performance, the trading value is below estimated fair value, indicating potential undervaluation. However, there are concerns about shareholder dilution and a forecasted low return on equity. Recent financial results show a significant increase in sales and net income, supporting its growth trajectory.
Please note that this article is for informational purposes only and does not constitute financial advice. It is based on historical data and analyst forecasts. Simply Wall St has no position in any stocks mentioned. If you have any feedback or concerns, feel free to contact us directly or email editorial-team@simplywallst.com.