Stock Analysis

Top Growth Companies With Strong Insider Ownership In July 2024

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As global markets experience notable shifts, with small-cap stocks leading gains and consumer prices in the U.S. showing a decline for the first time in years, investors are keenly observing these trends for potential opportunities. In such a climate, growth companies with strong insider ownership can be particularly compelling, as high insider stakes often signal confidence in the company's future from those who know it best.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Yggdrazil Group (SET:YGG)18%33.5%
Archean Chemical Industries (NSEI:ACI)22.9%28.9%
Cettire (ASX:CTT)28.7%26.7%
Arctech Solar Holding (SHSE:688408)38.6%25.8%
Gaming Innovation Group (OB:GIG)26.7%36.9%
Seojin SystemLtd (KOSDAQ:A178320)27.9%58.7%
Calliditas Therapeutics (OM:CALTX)11.6%52.9%
Vow (OB:VOW)31.8%97.6%
UTI (KOSDAQ:A179900)34.1%122.7%
EHang Holdings (NasdaqGM:EH)32.8%74.3%

Click here to see the full list of 1438 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Alsea. de (BMV:ALSEA *)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Alsea, S.A.B. de C.V. is a company that manages a portfolio of restaurant brands across Latin America and Europe, with a market capitalization of approximately MX$50.73 billion.

Operations: Alsea's revenue is primarily derived from its food and beverage segments, generating MX$40.53 billion in Mexico, MX$13.40 billion in other Latin American countries, and MX$22.83 billion in Europe.

Insider Ownership: 38.4%

Alsea, a company with substantial insider ownership, is poised for notable earnings growth, forecasted at 22.31% annually over the next three years, outpacing the broader MX market's average. While its revenue growth is slower relative to high-growth firms at 9.2% per year, it still exceeds the market average of 6.9%. Financially, Alsea carries a high level of debt which could be a concern. Analysts predict a potential stock price increase of 35.2%, reflecting optimism in its operational performance despite recent mixed quarterly results showing a decrease in net income and earnings per share compared to the previous year.

BMV:ALSEA * Earnings and Revenue Growth as at Jul 2024

IKD (SHSE:600933)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: IKD Co., Ltd. is a company that specializes in researching, developing, producing, and selling automotive aluminum alloy precision die castings across the United States, Europe, and Asia, with a market capitalization of CN¥14.07 billion.

Operations: The company generates CN¥6.34 billion in revenue from its automotive parts and accessories segment.

Insider Ownership: 12.5%

IKD Co., Ltd. has demonstrated robust financial performance with a significant increase in annual earnings, growing from CNY 648.54 million to CNY 913.4 million, alongside a rise in revenue from CNY 4.26 billion to nearly CNY 5.96 billion year-over-year. Despite this growth, the company's dividend yield of 2.01% is not adequately supported by its free cash flows, suggesting potential sustainability issues for payouts. Additionally, while insider ownership might suggest confidence, there's no recent activity indicating further insider buying or selling within the past three months.

SHSE:600933 Earnings and Revenue Growth as at Jul 2024

Shenzhen Yinghe Technology (SZSE:300457)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shenzhen Yinghe Technology Co., Ltd. specializes in researching, developing, producing, and selling automation equipment within China, with a market capitalization of approximately CN¥10.68 billion.

Operations: The company generates its revenue primarily from the design, manufacture, and sale of automation equipment.

Insider Ownership: 19.3%

Shenzhen Yinghe Technology, with a P/E ratio of 17.5x below the Chinese market average, shows promising financial health. Despite a recent dividend cut to CNY 1.75 per 10 shares, the company's revenue and earnings growth outpace market averages, with revenues increasing to CNY 1.87 billion and net income rising to CNY 158.53 million in Q1 2024. However, its forecasted return on equity is low at 14.1%, and its dividend track record remains unstable, reflecting potential risks in sustained payout growth.

SZSE:300457 Ownership Breakdown as at Jul 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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