Three Growth Stocks With Strong Insider Confidence

As global markets navigate mixed signals, with the S&P 500 and Nasdaq Composite closing out a strong year despite recent volatility, investors are keenly observing insider activity as a potential indicator of company confidence. In this context, stocks with high insider ownership can be particularly appealing, as they may reflect management's belief in the company's growth prospects amidst fluctuating economic conditions.

Top 10 Growth Companies With High Insider Ownership

Name	Insider Ownership	Earnings Growth
Duc Giang Chemicals Group (HOSE:DGC)	31.4%	23.8%
People & Technology (KOSDAQ:A137400)	16.4%	37.3%
Archean Chemical Industries (NSEI:ACI)	22.9%	41.3%
Laopu Gold (SEHK:6181)	36.4%	34.6%
Medley (TSE:4480)	34%	27.2%
Plenti Group (ASX:PLT)	12.8%	120.1%
Brightstar Resources (ASX:BTR)	16.2%	84.5%
Fine M-TecLTD (KOSDAQ:A441270)	17.2%	131.1%
Fulin Precision (SZSE:300432)	13.6%	66.7%
HANA Micron (KOSDAQ:A067310)	18.3%	110.9%

Click here to see the full list of 1484 stocks from our Fast Growing Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Jiangsu Xinquan Automotive TrimLtd (SHSE:603179)

Simply Wall St Growth Rating: ★★★★★★

Overview: Jiangsu Xinquan Automotive Trim Co., Ltd. designs, develops, manufactures, sells, and supplies auto parts in China with a market cap of CN¥23.17 billion.

Operations: The company's revenue from Auto Parts & Accessories is CN¥12.86 billion.

Insider Ownership: 39.4%

Earnings Growth Forecast: 28.1% p.a.

Jiangsu Xinquan Automotive Trim Ltd. demonstrates strong growth potential with earnings forecasted to grow 28.1% annually, outpacing the Chinese market's 25.2%. Its revenue is also expected to expand significantly at 22.4% per year, surpassing market expectations. The company's price-to-earnings ratio of 24.9x suggests it is undervalued compared to the CN market average of 33.2x. Recent results show robust sales and net income growth, reinforcing its position as a promising investment opportunity in the automotive sector.

• Unlock comprehensive insights into our analysis of Jiangsu Xinquan Automotive TrimLtd stock in this growth report.
• Our comprehensive valuation report raises the possibility that Jiangsu Xinquan Automotive TrimLtd is priced lower than what may be justified by its financials.

Cambricon Technologies (SHSE:688256)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Cambricon Technologies Corporation Limited focuses on researching, developing, designing, and selling core chips for cloud servers, edge computing, and terminal equipment in China with a market cap of CN¥297.18 billion.

Operations: Revenue Segments (in millions of CN¥): The company generates revenue through its core chip offerings for cloud servers, edge computing, and terminal equipment in China.

Insider Ownership: 28.7%

Earnings Growth Forecast: 58.0% p.a.

Cambricon Technologies shows potential with forecasted annual earnings growth of 58.02% and revenue growth of 45.3%, outpacing the Chinese market's average. Despite a volatile share price and low return on equity forecast, its expected profitability within three years is promising. Recent private placements raised CNY 1.65 billion, supporting future expansion efforts. However, the company reported a net loss of CNY 724.49 million for the first nine months of 2024, indicating ongoing financial challenges.

• Dive into the specifics of Cambricon Technologies here with our thorough growth forecast report.
• Our expertly prepared valuation report Cambricon Technologies implies its share price may be too high.

Guangdong Zhongsheng Pharmaceutical (SZSE:002317)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guangdong Zhongsheng Pharmaceutical Co., Ltd. operates in the pharmaceutical industry, focusing on the research, development, production, and sale of medications with a market cap of CN¥10.36 billion.

Operations: Unfortunately, the provided text does not include specific revenue segment figures for Guangdong Zhongsheng Pharmaceutical Co., Ltd. If you can provide those details, I would be happy to help summarize them for you.

Insider Ownership: 27.8%

Earnings Growth Forecast: 41.7% p.a.

Guangdong Zhongsheng Pharmaceutical is poised for significant earnings growth, projected at 41.7% annually, surpassing the Chinese market average. Despite a decline in net income to CNY 148.8 million for the first nine months of 2024 and reduced profit margins from last year, revenue growth is expected to outpace the market at 16.3%. The upcoming shareholder meeting may impact future strategies, particularly concerning equity redemption in a subsidiary.

• Take a closer look at Guangdong Zhongsheng Pharmaceutical's potential here in our earnings growth report.
• Our comprehensive valuation report raises the possibility that Guangdong Zhongsheng Pharmaceutical is priced higher than what may be justified by its financials.

Next Steps

• Explore the 1484 names from our Fast Growing Companies With High Insider Ownership screener here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Seeking Other Investments?

• 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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