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ASX Growth Leaders With High Insider Ownership Explored

In the past week, the Australian market has experienced a slight decline of 1.0%, though it has shown a robust increase of 8.4% over the past year with earnings expected to grow by 14% annually. In this context, stocks with high insider ownership can be particularly compelling as they often indicate that those who know the company best are betting on its success.

Top 10 Growth Companies With High Insider Ownership In Australia

Name

Insider Ownership

Earnings Growth

Hartshead Resources (ASX:HHR)

13.9%

86.3%

Cettire (ASX:CTT)

28.7%

29.9%

Gratifii (ASX:GTI)

15.6%

112.4%

Acrux (ASX:ACR)

14.6%

115.3%

Doctor Care Anywhere Group (ASX:DOC)

28.4%

96.4%

Alpha HPA (ASX:A4N)

26.3%

95.9%

Plenti Group (ASX:PLT)

12.6%

106.4%

Botanix Pharmaceuticals (ASX:BOT)

11.4%

120.9%

Hillgrove Resources (ASX:HGO)

10.4%

45.4%

Liontown Resources (ASX:LTR)

16.4%

63.9%

Click here to see the full list of 90 stocks from our Fast Growing ASX Companies With High Insider Ownership screener.

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Here we highlight a subset of our preferred stocks from the screener.

IPD Group

Simply Wall St Growth Rating: ★★★★★☆

Overview: IPD Group Limited is an Australian company that specializes in distributing electrical equipment, with a market capitalization of approximately A$468.31 million.

Operations: The company generates revenue through its Products Division, which brought in A$215.98 million, and its Services Division, which contributed A$20.79 million.

Insider Ownership: 28.4%

Revenue Growth Forecast: 23.8% p.a.

IPD Group, a growth-oriented company in Australia, showcases robust potential with projected earnings and revenue growth outpacing the broader Australian market significantly. Despite trading 11.9% below estimated fair value and expected substantial earnings increase over the next three years, concerns include lower forecasted Return on Equity and recent shareholder dilution. Analysts remain optimistic about the stock's price potential, although there is no recent insider trading activity to report.

ASX:IPG Ownership Breakdown as at May 2024
ASX:IPG Ownership Breakdown as at May 2024

IperionX

Simply Wall St Growth Rating: ★★★★★☆

Overview: IperionX Limited is a company focused on the exploration and development of mineral properties in the United States, with a market capitalization of approximately A$602.31 million.

Operations: The firm operates solely in the exploration and development of mineral properties in the U.S., and specific revenue segments are not detailed.

Insider Ownership: 15.2%

Revenue Growth Forecast: 76.4% p.a.

IperionX is poised for significant growth with a forecasted annual revenue increase of 76.4%, substantially outpacing the Australian market's 5% growth rate. The company, which makes less than US$1m annually, is also expected to turn profitable within three years. Recent strategic partnerships and a A$50 million equity offering underline its expansion efforts, although shareholder dilution and a low projected Return on Equity at 11.7% present challenges.

ASX:IPX Earnings and Revenue Growth as at May 2024
ASX:IPX Earnings and Revenue Growth as at May 2024

Mesoblast

Simply Wall St Growth Rating: ★★★★★☆

Overview: Mesoblast Limited, operating in Australia, the United States, Singapore, and Switzerland, focuses on developing regenerative medicine products with a market capitalization of approximately A$1.40 billion.

Operations: The company generates revenue primarily from its development of adult stem cell technology platform, totaling $7.47 million.

Insider Ownership: 22.2%

Revenue Growth Forecast: 55.3% p.a.

Mesoblast, an Australian biotechnology firm, is navigating a transformative phase with high insider ownership. Recently, the company has seen substantial insider buying and is expected to become profitable within three years amidst forecasts of significant revenue growth (55.3% annually). However, shareholder dilution has occurred over the past year. Leadership changes include appointing Jane Bell as non-executive Chair, bringing extensive international finance experience which could steer Mesoblast towards harnessing its growth potential in innovative medical treatments.

ASX:MSB Ownership Breakdown as at May 2024
ASX:MSB Ownership Breakdown as at May 2024

Turning Ideas Into Actions

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology 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 account of 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 the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

Companies discussed in this article include ASX:IPG ASX:IPX and ASX:MSB.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com