Stock Analysis

3 Growth Stocks Insiders Are Banking On

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As global markets navigate the challenges of rising Treasury yields and tepid economic growth, investors are keenly focused on sectors that show resilience and potential for expansion. In this environment, growth stocks with high insider ownership often attract attention due to the confidence insiders demonstrate in their companies' long-term prospects.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Arctech Solar Holding (SHSE:688408)37.8%29.8%
Laopu Gold (SEHK:6181)36.4%33.2%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Medley (TSE:4480)34%30.4%
Findi (ASX:FND)35.8%64.8%
HANA Micron (KOSDAQ:A067310)18.3%105.8%
Pharma Mar (BME:PHM)11.8%55.1%
Adveritas (ASX:AV1)21.2%144.2%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1517 stocks from our Fast Growing Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Floridienne (ENXTBR:FLOB)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Floridienne S.A. operates through its subsidiaries in the chemicals, gourmet food, and life sciences sectors both in Belgium and internationally, with a market cap of €607.29 million.

Operations: The company generates its revenue from three main segments: €150.05 million from Food, €39.25 million from the Chemicals Division, and €409.99 million from the Life Sciences Division.

Insider Ownership: 19.3%

Revenue Growth Forecast: 11.7% p.a.

Floridienne S.A. demonstrates characteristics of a growth company with high insider ownership, despite some challenges. The company's earnings are forecast to grow significantly at 44.8% annually, outpacing the Belgian market's average. However, profit margins have declined from last year and revenue growth is expected to be moderate compared to higher benchmarks. Recent earnings reports show increased sales but decreased net income due to large one-off items impacting results, highlighting mixed financial quality.

ENXTBR:FLOB Ownership Breakdown as at Oct 2024

Gstarsoft (SHSE:688657)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Gstarsoft Co., Ltd. is involved in the research, development, design, and sale of 2D/3D CAD software and cloud solutions globally, with a market cap of approximately CN¥2.61 billion.

Operations: The company's revenue is primarily derived from its global activities in developing and selling 2D/3D CAD software and cloud solutions.

Insider Ownership: 34.1%

Revenue Growth Forecast: 24% p.a.

Gstarsoft shows elements of a growth-focused company with substantial insider ownership. Despite recent earnings reports indicating a slight increase in sales to CNY 197.77 million, net income has decreased to CNY 34.69 million, reflecting tighter profit margins compared to last year. The company's revenue is expected to grow at a robust 24% annually, surpassing the CN market average. However, its earnings growth forecast slightly lags behind the market, and share price volatility remains high.

SHSE:688657 Earnings and Revenue Growth as at Oct 2024

Actron Technology (TPEX:8255)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Actron Technology Corporation, with a market cap of NT$17.35 billion, designs, develops, and sells electronic components for vehicles to automakers globally.

Operations: The company's revenue segments include NT$209.27 million from the China Business Segment, NT$6.12 billion from the Taiwan Business Segment, and NT$1.55 billion from the Taiwan Mosel Business Division.

Insider Ownership: 10.4%

Revenue Growth Forecast: 16.9% p.a.

Actron Technology demonstrates characteristics of a growth-oriented company with significant insider ownership. Its earnings are forecast to grow at 29.3% annually, outpacing the Taiwan market, although recent reports show declining net income and profit margins compared to last year. The stock trades significantly below its fair value estimate, with analysts predicting a 35.2% price increase. Despite these prospects, the company's dividend coverage remains weak relative to free cash flows.

TPEX:8255 Ownership Breakdown as at Oct 2024

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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.

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