3 ASX Growth Stocks With Insider Ownership Up To 31%: Opportunities and Risks

The Australian Securities Exchange (ASX) is home to a diverse range of companies, with some offering compelling growth prospects and high insider ownership. This article explores three ASX-listed growth stocks with insider ownership up to 31%, highlighting their investment potential and associated risks.

1. Reece Ltd (ASX: REH)
- Insider ownership: 55% (Wilson family)
- Earnings growth (FY19-FY23): 20% (CAGR)
- Revenue growth (FY19-FY23): 14.5% (CAGR)
- P/E ratio: 20x (slightly higher than the broader market's average)
- Dividend yield: 1% (lower than the broader market's average)

Reece Ltd, a leading Australian distributor of plumbing, waterworks, and bathroom products, has shown impressive financial performance and consistent dividend payments. The Wilson family's significant insider ownership indicates strong alignment with shareholder interests, driving growth strategies such as expansion into the US market through the acquisition of MORSCO in 2018. Reece's conservative growth profile and lower valuation make it an attractive option for income-focused investors seeking exposure to the consumer goods sector.

2. Supply Network Ltd (ASX: SNL)
- Insider ownership: 42% (directors and senior managers)
- Earnings growth (FY19-FY23): 35% (CAGR)
- Revenue growth (FY19-FY23): 20% (CAGR)
- P/E ratio: 32x (higher than the broader market's average)

Supply Network Ltd, a provider of aftermarket parts for commercial vehicles, has demonstrated remarkable growth in revenue and earnings, driven by its efficient supply chain management and tight-knit, long-serving board with significant shareholdings. The company's impressive growth and strong insider ownership present an attractive opportunity for growth-oriented investors seeking exposure to the industrial sector. However, its higher valuation may pose a risk for investors with lower risk tolerance.



3. Pro Medicus Limited (ASX: PME)
- Insider ownership: 52% (executive key management personnel)
- Earnings growth (FY18-FY23): 50% (CAGR)
- Revenue growth (FY18-FY23): 40% (CAGR)
- P/E ratio: 100x (significantly higher than the broader market's average)

Pro Medicus Limited, a global provider of radiology information systems and advanced visualization solutions, has achieved remarkable success in the medical imaging industry. The company's innovative product offerings, efficient management, and strong insider ownership have contributed to its impressive earnings and revenue growth. Pro Medicus' high-growth profile and elevated valuation present an attractive opportunity for growth-oriented investors seeking exposure to the healthcare technology sector. However, its high valuation may pose a risk for investors with lower risk tolerance.

In conclusion, Reece Ltd, Supply Network Ltd, and Pro Medicus Limited offer compelling investment opportunities with their impressive financial performance, strong insider ownership, and growth prospects. However, investors must consider their risk tolerance and investment objectives when evaluating these opportunities, as each company's valuation and growth profile may present unique risks. By carefully analyzing the financial forecasts, valuations, and insider ownership of these ASX growth stocks, investors can make informed decisions and capitalize on the potential opportunities they present.