At The Motley Fool, we like companies with a high level of insider ownership. We believe that leaders with large ownership stakes in their companies will have a greater incentive to do what's best for the business. The record appears to bear this theory out, since such companies tend to outperform.
Compare the performance of Garmin (NASDAQ:GRMN) (41% insider-owned) to that of golden-parachute-burdened Home Depot (NYSE:HD) (1% insider-owned). One has been a double over the past five years, while the other has done ... not so well. I’ll let you guess which is which.
With all of this in mind, I used our new CAPS screening tool to look for companies with high insider ownership. Below, you'll find five companies whose insiders hold at least 20% of shares.
They also have:
- Market caps greater than $150 million.
- Five-star ratings, the highest possible, from our CAPS community.
Remember, in the first year for which we have data, five-star companies outperformed with an average return of nearly 28%.
|
Company |
Share Price |
Sector |
Market Cap |
|---|---|---|---|
|
Fuel Tech (NASDAQ:FTEK) |
$24.13 |
Industrial Goods |
$542 million |
|
IPG Photonics (NASDAQ:IPGP) |
$18.41 |
Technology |
$815 million |
|
Navios Maritime (NYSE:NM) |
$10.28 |
Services |
$1.1 billion |
|
Steel Dynamics (NASDAQ:STLD) |
$37.77 |
Basic Materials |
$7.1 billion |
|
ShengaTech (NASDAQ:SDTH) |
$7.74 |
Basic Materials |
$419 million |
Data from Motley Fool CAPS and Yahoo! Finance as of June 10.
Of course, this screen is only a starting point in the research process. Come and join us on Motley Fool CAPS to dig into these companies further. Let our 105,000-strong (and counting) CAPS community help you make better stock selections.
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