Stock Analysis
3 Growth Stocks With Insider Ownership Expecting Up To 71% Earnings Growth
Reviewed by Simply Wall St
As global markets experience a rebound fueled by easing core U.S. inflation and strong bank earnings, the focus has shifted to how growth stocks are navigating these conditions. In this environment, companies with substantial insider ownership often attract attention due to their potential alignment of interests between management and shareholders, suggesting confidence in the company's future prospects.
Top 10 Growth Companies With High Insider Ownership
| Name | Insider Ownership | Earnings Growth |
| Kirloskar Pneumatic (BSE:505283) | 30.3% | 26.3% |
| Archean Chemical Industries (NSEI:ACI) | 22.9% | 41.2% |
| Clinuvel Pharmaceuticals (ASX:CUV) | 10.4% | 26.2% |
| People & Technology (KOSDAQ:A137400) | 16.4% | 37.3% |
| SKS Technologies Group (ASX:SKS) | 29.7% | 24.8% |
| Medley (TSE:4480) | 34.1% | 27.2% |
| Plenti Group (ASX:PLT) | 12.7% | 120.1% |
| Fine M-TecLTD (KOSDAQ:A441270) | 17.2% | 135% |
| HANA Micron (KOSDAQ:A067310) | 18.3% | 108.3% |
| Findi (ASX:FND) | 35.8% | 110.7% |
Underneath we present a selection of stocks filtered out by our screen.
Pharma Mar (BME:PHM)
Simply Wall St Growth Rating: ★★★★★★
Overview: Pharma Mar, S.A. is a biopharmaceutical company focused on the research, development, production, and commercialization of bio-active principles for oncology across various regions including Europe and the United States, with a market cap of €1.40 billion.
Operations: The company's revenue is primarily derived from its oncology segment, which generated €154.75 million.
Insider Ownership: 11.9%
Earnings Growth Forecast: 55.1% p.a.
Pharma Mar demonstrates potential as a growth company with high insider ownership, highlighted by its forecasted earnings growth of 55.1% annually, outpacing the Spanish market's 8.2%. Despite recent volatility in share price and declining profit margins from 8.3% to 0.4%, it trades at a significant discount to estimated fair value and shows strong revenue growth prospects at 25.5% per year, surpassing the market's expected rate of 4.9%.
- Delve into the full analysis future growth report here for a deeper understanding of Pharma Mar.
- Our expertly prepared valuation report Pharma Mar implies its share price may be lower than expected.
Yijiahe Technology (SHSE:603666)
Simply Wall St Growth Rating: ★★★★★☆
Overview: Yijiahe Technology Co., Ltd. focuses on the research and development, design, and sale of intelligent robots in China, with a market capitalization of CN¥5.31 billion.
Operations: The company's revenue is derived from its activities in the research, development, design, and sale of intelligent robots within China.
Insider Ownership: 28.2%
Earnings Growth Forecast: 71.6% p.a.
Yijiahe Technology shows promise with forecasted revenue growth of 33.8% annually, significantly outpacing China's market average of 13.4%. Despite recent share price volatility and a net loss of CNY 80.23 million for the first nine months of 2024, the company is expected to achieve profitability within three years. Insider ownership remains stable without substantial buying or selling activity recently, while its return on equity is projected to be relatively low at 3.8%.
- Click to explore a detailed breakdown of our findings in Yijiahe Technology's earnings growth report.
- Insights from our recent valuation report point to the potential overvaluation of Yijiahe Technology shares in the market.
KEDE Numerical Control (SHSE:688305)
Simply Wall St Growth Rating: ★★★★★☆
Overview: KEDE Numerical Control Co., Ltd. manufactures and markets CNC systems and functional components in China, with a market cap of CN¥6.75 billion.
Operations: The company's revenue primarily comes from its General Equipment Manufacturing segment, which generated CN¥540.98 million.
Insider Ownership: 18%
Earnings Growth Forecast: 41% p.a.
KEDE Numerical Control is poised for growth, with earnings forecasted to increase by 41% annually, surpassing the Chinese market's average. Revenue is expected to grow at 38.8% per year. Despite a low future return on equity of 13.7%, analysts agree on a potential stock price rise of 23.1%. Recent earnings show sales reaching CNY 381.34 million and net income at CNY 72.26 million, reflecting solid past performance without recent insider trading activity reported.
- Get an in-depth perspective on KEDE Numerical Control's performance by reading our analyst estimates report here.
- Our expertly prepared valuation report KEDE Numerical Control implies its share price may be too high.
Where To Now?
- Embark on your investment journey to our 1464 Fast Growing Companies With High Insider Ownership selection here.
- Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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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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About BME:PHM
Pharma Mar
A biopharmaceutical company, engages in the research, development, production, and commercialization of bio-active principles for the use in oncology in Spain, Italy, Germany, Ireland, France, rest of the European Union, the United States, and internationally.
