October 2024's Top Growth Companies With Significant Insider Ownership

In October 2024, global markets have been under pressure from rising U.S. Treasury yields, with the S&P 500 Index finishing lower after a strong six-week run and growth stocks outperforming value stocks. Amid this backdrop, investors are increasingly focusing on growth companies with significant insider ownership as these firms often exhibit strong alignment between management and shareholder interests, which can be particularly appealing in uncertain market conditions.

Top 10 Growth Companies With High Insider Ownership

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

Here we highlight a subset of our preferred stocks from the screener.

Jiangsu Xinquan Automotive TrimLtd (SHSE:603179)

Simply Wall St Growth Rating: ★★★★★★

Overview: Jiangsu Xinquan Automotive Trim Co., Ltd. is a company that designs, develops, manufactures, sells, and supplies auto parts in China with a market cap of CN¥24.50 billion.

Operations: The company generates revenue of CN¥12.10 billion from its Auto Parts & Accessories segment.

Insider Ownership: 39.4%

Revenue Growth Forecast: 22% p.a.

Jiangsu Xinquan Automotive Trim Ltd. demonstrates strong growth potential, with earnings and revenue forecasted to grow significantly faster than the Chinese market. Recent expansions into Slovakia highlight strategic positioning in Europe's automotive hub, capitalizing on nearshoring trends. The company's recent financials show robust performance, with a substantial increase in sales and revenue compared to last year. Despite a low dividend yield, its price-to-earnings ratio suggests good value relative to the market average.

• Take a closer look at Jiangsu Xinquan Automotive TrimLtd's potential here in our earnings growth report.
• Our expertly prepared valuation report Jiangsu Xinquan Automotive TrimLtd implies its share price may be too high.

Hui Lyu Ecological Technology GroupsLtd (SZSE:001267)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hui Lyu Ecological Technology Groups Co., Ltd. operates in the ecological technology sector and has a market capitalization of CN¥4.82 billion.

Operations: The company's revenue segments consist of CN¥44.85 million from Design, CN¥38.69 million from Seedlings, and CN¥543.86 million from Engineering.

Insider Ownership: 34.7%

Revenue Growth Forecast: 14.2% p.a.

Hui Lyu Ecological Technology Groups Ltd. is poised for significant earnings growth, forecasted at 34.25% annually, outpacing the Chinese market average. However, revenue growth is expected to be moderate at 14.2% per year. The company trades significantly below its estimated fair value, indicating potential undervaluation despite an unstable dividend history and low return on equity projections. Recent board changes may influence strategic direction but lack insider trading activity in recent months suggests stability in ownership interests.

• Navigate through the intricacies of Hui Lyu Ecological Technology GroupsLtd with our comprehensive analyst estimates report here.
• In light of our recent valuation report, it seems possible that Hui Lyu Ecological Technology GroupsLtd is trading beyond its estimated value.

Nanjing Hanrui CobaltLtd (SZSE:300618)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Nanjing Hanrui Cobalt Co., Ltd. is involved in the extraction of cobalt and copper ores, with a market capitalization of CN¥11.60 billion.

Operations: The company generates revenue primarily from its activities in cobalt and copper ore extraction.

Insider Ownership: 29.5%

Revenue Growth Forecast: 25.6% p.a.

Nanjing Hanrui Cobalt Ltd. is experiencing robust revenue growth, projected at 25.6% annually, surpassing the Chinese market average of 13.5%. Earnings are expected to grow significantly at 30.2% per year, indicating strong potential despite a forecasted low return on equity of 9%. Recent earnings for the nine months ended September showed sales rising to CNY 4.18 billion from CNY 3.72 billion a year ago, with net income increasing to CNY 167.17 million from CNY 130.51 million, highlighting its growth trajectory amidst high insider ownership stability without substantial recent insider trading activity.

• Unlock comprehensive insights into our analysis of Nanjing Hanrui CobaltLtd stock in this growth report.
• Our comprehensive valuation report raises the possibility that Nanjing Hanrui CobaltLtd is priced higher than what may be justified by its financials.

Key Takeaways

• Investigate our full lineup of 1517 Fast Growing Companies With High Insider Ownership right here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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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