As US stock markets continue their post-election rally, buoyed by Federal Reserve rate cuts and record highs in major indexes such as the S&P 500 and Nasdaq, investors are increasingly interested in growth companies with significant insider ownership. In such a strong market environment, stocks with high insider ownership can be particularly attractive because they often signal confidence from those close to the company’s operations and strategy.
Let’s explore several standout options from the screener results.
Simply Wall St. Growth Rating: ★★★★☆☆
Brief description: Roku, Inc. operates a TV streaming platform in the United States and internationally, with a market cap of about $10.49 billion.
Operation: The company’s revenue is derived from its device segment, which generated $579.97 million, and its platform segment contributed $3.32 billion.
Internal Ownership: 12.3%
Income Growth Forecast: 59.3% p.a
Roku, with its significant insider ownership, is positioned for growth as it forecasts above-average market profit growth over the next three years. Recent partnerships, such as with Instacart, increase its advertising capabilities and revenue potential. The company reported a net loss of $9.03 million in Q3 2024 and expects Q4 revenue of $1.14 billion. Despite trading below estimated fair value, Roku’s return on equity remains low at 2.3%.
NasdaqGS: ROKU Ownership Breakdown in November 2024
Simply Wall St. Growth Rating: ★★★★☆☆
Brief description: Sportradar Group AG, together with its subsidiaries, provides sports data services to the sports betting and media industries in the UK, US, Malta, Switzerland and worldwide, with a market capitalization of approximately $3.77 billion.
Operation: Sportradar Group’s revenues are derived from the provision of sports data services in the sports betting and media sectors in various international markets.
Internal Ownership: 31.9%
Income Growth Forecast: 68% pa
Sportradar Group shows substantial growth potential driven by its enhanced NBA partnerships and innovative fan engagement solutions. The company reported a significant earnings improvement for the 3rd quarter of 2024 with net income rising to €37.26 million from €4.34 million in the previous year. Despite trading below fair value, Sportradar’s earnings are forecast to grow faster than the US market average, although its return on equity remains modest at 9.9%.
NasdaqGS: SRAD Revenue and Revenue Growth as of November 2024
Simply Wall St. Growth Rating: ★★★★☆☆
Brief description: Jefferies Financial Group Inc. is an investment banking and capital markets firm with operations across the Americas, Europe, the Middle East, and the Asia-Pacific, with a market capitalization of approximately $14.81 billion.
Operation: The company’s revenue segments include Investment Banking and Capital Markets, which generated $5.62 billion, and Asset Management, which contributed $629.50 million.
Internal Ownership: 21.1%
Income Growth Forecast: 33.3% pa
Jefferies Financial Group is experiencing significant earnings growth, forecast at 33.3% annually, outpacing the US market average. Despite free cash flow and a low dividend coverage by recent internal sales, the company shows strong revenue growth potential of 14.1% per year. Recent fixed income offerings totaling more than $500 million suggest strategic financial strategy to support expansion. However, its return on equity is modestly forecast at 10.2%.
NYSE: JEF Earnings and Revenue Growth in Nov 2024
This article on Simply Wall St. is general in nature. We only provide commentary based on historical data and analyst forecasts using an unbiased approach, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in recent price-sensitive company announcements or qualitative factors. Simply Wall St. has no position in any of the stocks mentioned. The analysis considers only stocks held directly by insiders. It does not include stocks owned indirectly through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of compound annual (annual) growth rates over 1-3 years.
