Stock Analysis

Spotlight On Three Insider-Owned Growth Stocks

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Amidst rising geopolitical tensions and fluctuating oil prices, global markets have shown resilience with U.S. large-cap stocks achieving a fourth consecutive weekly gain, despite challenges such as job market surprises and supply chain disruptions. In this environment of uncertainty, companies with high insider ownership often attract attention as they may signal confidence from those who know the business best; these growth stocks can be particularly appealing when insiders have a significant stake in their success.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Arctech Solar Holding (SHSE:688408)37.8%29.9%
Clinuvel Pharmaceuticals (ASX:CUV)10.4%27.4%
Atlas Energy Solutions (NYSE:AESI)29.1%42.1%
Laopu Gold (SEHK:6181)36.4%32.6%
Medley (TSE:4480)34%30.4%
Credo Technology Group Holding (NasdaqGS:CRDO)14.0%95%
Adveritas (ASX:AV1)21.1%144.2%
Plenti Group (ASX:PLT)12.8%106.4%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1490 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Banco Macro (BASE:BMA)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Banco Macro S.A. is an Argentine bank offering a range of financial products and services to both retail and corporate clients, with a market cap of ARS5.34 trillion.

Operations: The company's revenue from its banking business segment amounts to ARS3.47 billion.

Insider Ownership: 36.5%

Earnings Growth Forecast: 21.6% p.a.

Banco Macro has high insider ownership, aligning interests with shareholders, yet faces challenges. Despite a volatile share price and unstable dividend history, its earnings are forecasted to grow significantly at 21.63% annually over the next three years, outpacing the Argentine market's 17.7%. However, recent financial results revealed a net loss of ARS 233.71 billion for Q2 2024 and slower revenue growth than the market average.

BASE:BMA Ownership Breakdown as at Oct 2024

Localiza Rent a Car (BOVESPA:RENT3)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Localiza Rent a Car S.A. operates in the car and fleet rental industry both in Brazil and internationally, with a market cap of R$44.50 billion.

Operations: The company generates revenue from fleet rental amounting to R$13.53 billion, with a segment adjustment of R$19.43 billion.

Insider Ownership: 19.1%

Earnings Growth Forecast: 39.1% p.a.

Localiza Rent a Car shows strong insider alignment but faces challenges. Despite volatile share prices and recent removal from the Brazil Valor BM&FBOVESPA Index, its earnings are forecasted to grow significantly at 39.1% annually, surpassing the Brazilian market's 13.8%. However, financial results show a net loss of R$569.47 million for Q2 2024 and interest payments not well covered by earnings, raising concerns about financial stability despite projected revenue growth of 15.6%.

BOVESPA:RENT3 Earnings and Revenue Growth as at Oct 2024

Kinik (TWSE:1560)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Kinik Company is involved in the production and sale of abrasives, cutting tools, and reclaimed wafers both in Taiwan and internationally, with a market cap of NT$46.01 billion.

Operations: The company's revenue is derived from two main segments: the Electronics Sector, contributing NT$3.29 billion, and the Traditional Sectors, also contributing NT$3.28 billion.

Insider Ownership: 17.4%

Earnings Growth Forecast: 32% p.a.

Kinik demonstrates strong growth prospects with earnings forecasted to grow significantly at 31.97% annually, outpacing the Taiwanese market's 19.1%. Despite a highly volatile share price recently, Kinik trades at 52.3% below its estimated fair value, offering potential investment appeal. Recent financial results show improved performance with Q2 sales of TWD 1,731.11 million and net income of TWD 253.67 million, reflecting steady revenue and profit growth over the past year without substantial insider trading activities reported recently.

TWSE:1560 Earnings and Revenue Growth as at Oct 2024

Summing It All Up

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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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