Why High Insider Ownership in Growth Stocks Makes Them Compelling Buys in Volatile Markets

In volatile markets, investors often seek companies where management's interests are closely aligned with shareholders. High insider ownership-a metric that reflects the percentage of a company's shares held by executives and directors-has long been viewed as a proxy for this alignment. When insiders own significant stakes in their company, they are more likely to prioritize long-term value creation over short-term gains, a dynamic that can prove critical during periods of market uncertainty. Recent performance data from companies like Amer Sports, Karman Holdings, and Hinge Health underscores how strong insider ownership, combined with strategic management decisions, can drive robust growth even in challenging environments.

Amer Sports: Strategic Brand Focus and Guidance Upsides

Amer Sports, the Finnish sporting goods giant, exemplifies how insider alignment can fuel resilience. With insider ownership at 18% according to reports, the company has demonstrated a clear focus on high-growth segments. In Q3 2025, Amer Sports reported a 30% year-over-year revenue increase to $1.76 billion, driven by strong performance in its Salomon and Arc'teryx brands. This success prompted the company to raise its full-year revenue growth guidance to 23-24%, a move that reflects confidence in its strategic direction. Notably, insider activity has been net positive, with executives buying more shares than selling, signaling continued optimism despite a low forecasted return on equity as data shows. This alignment between management and shareholders appears to reinforce the company's ability to navigate market volatility while prioritizing sustainable growth.

Karman Holdings: Earnings Growth and Insider Confidence

Karman Holdings, a defense and industrial services provider, has leveraged its 17.5% insider ownership to drive aggressive earnings growth. The company's 2025 forecast includes a staggering 78.5% annual earnings growth, outpacing broader market averages according to analysis. This performance is underpinned by strategic operational decisions, such as a $758.2 million funded backlog and a 103% stock price surge in 2025 as reported. While insiders have sold shares-most notably CFO Michael Willis's 115,000-share transaction-collective ownership remains high, suggesting continued alignment with shareholders as evidence shows. Analysts, including RBC Capital, have maintained an "Outperform" rating for Karman Holdings, citing its strong guidance and operational momentum. The company's ability to balance insider transactions with robust earnings growth highlights how strategic confidence can outweigh short-term volatility.

Hinge Health: Innovation and Shareholder-Focused Initiatives

Hinge Health, a digital health platform, has navigated a mixed earnings landscape with a 17.4% insider ownership stake according to data. Despite a Q3 2025 net loss, the company raised its full-year revenue guidance to $572 million–$574 million, reflecting a 53% year-over-year increase. This growth is driven by strategic investments in AI-powered tools like Robin and TruMotion, which position Hinge Health as a leader in musculoskeletal care as detailed in presentations. To further align with shareholders, the board approved a $250 million share buyback program, funded by cash reserves. While insider selling-such as CFO James Budge's $2.1 million in share sales-has raised some caution as reported, the company's overall strategic direction remains optimistic. Analysts have raised price targets, and Hinge Health's 25.8% insider ownership (as of November 2025) according to financial reports suggests management continues to bet on its long-term potential.

Strategic Alignment as a Market Resilience Tool

The cases of Amer Sports, Karman Holdings, and Hinge Health illustrate a common theme: high insider ownership often correlates with strategic decisions that prioritize long-term value. Whether through brand innovation, operational efficiency, or shareholder returns, these companies have demonstrated that management confidence-when aligned with ownership stakes-can drive growth even in volatile markets. While insider selling in some cases may signal caution, the broader context of raised guidance, expanded market share, and strategic reinvestment underscores a commitment to shareholder value.

For investors, the takeaway is clear: high insider ownership is not a standalone metric but a lens through which to evaluate management's strategic credibility. In uncertain times, this alignment can be a powerful differentiator.