Stock Analysis

Insider-Led Growth Stocks To Watch In December 2024

XTRA:HYQ
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As global markets navigate a landscape marked by cautious Federal Reserve commentary and political uncertainties, investors are increasingly focused on the resilience of growth stocks amidst fluctuating economic signals. In such an environment, companies with high insider ownership can offer a unique advantage, as their leaders have a vested interest in steering the company towards sustainable growth and stability.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
SKS Technologies Group (ASX:SKS)29.7%24.8%
People & Technology (KOSDAQ:A137400)16.4%37.3%
Archean Chemical Industries (NSEI:ACI)22.9%41.3%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Laopu Gold (SEHK:6181)36.4%34.2%
Plenti Group (ASX:PLT)12.8%120.1%
Brightstar Resources (ASX:BTR)16.2%84.5%
Credo Technology Group Holding (NasdaqGS:CRDO)13.4%66.3%
HANA Micron (KOSDAQ:A067310)18.5%110.9%
Findi (ASX:FND)34.8%112.9%

Click here to see the full list of 1515 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Wetown Electric Group (SHSE:688226)

Simply Wall St Growth Rating: ★★★★★★

Overview: Wetown Electric Group Co., Ltd. is involved in the research, development, production, and sale of electrical products both in China and internationally, with a market cap of CN¥3.89 billion.

Operations: Wetown Electric Group Co., Ltd. generates revenue through its research, development, production, and sale of electrical products across domestic and international markets.

Insider Ownership: 22.3%

Revenue Growth Forecast: 33% p.a.

Wetown Electric Group exhibits strong growth potential with forecasted annual revenue and earnings growth rates of 33% and 41.6%, respectively, outpacing the Chinese market averages. Recent earnings show a significant increase in net income to CNY 109.04 million from CNY 84.76 million year-over-year, indicating robust performance. Despite a high price-to-earnings ratio of 26.9x compared to the market, its valuation remains attractive relative to peers, although dividends are not well-covered by free cash flows.

SHSE:688226 Earnings and Revenue Growth as at Dec 2024
SHSE:688226 Earnings and Revenue Growth as at Dec 2024

M31 Technology (TPEX:6643)

Simply Wall St Growth Rating: ★★★★★★

Overview: M31 Technology Corporation offers silicon intellectual property design services within the integrated circuit industry and has a market capitalization of NT$32.23 billion.

Operations: The company generates revenue from its Semiconductor Equipment and Services segment, amounting to NT$1.67 billion.

Insider Ownership: 27.2%

Revenue Growth Forecast: 21.8% p.a.

M31 Technology is poised for significant growth with forecasted annual revenue and earnings increases of 21.8% and 47.8%, respectively, outpacing Taiwan's market averages. Despite recent declines in profit margins from 30.2% to 17.5%, the company's strategic advancements, such as the USB4 IP validation on TSMC's N5 process, highlight its innovative edge in high-performance IP solutions. However, the stock has experienced high volatility recently, which may concern potential investors seeking stability.

TPEX:6643 Ownership Breakdown as at Dec 2024
TPEX:6643 Ownership Breakdown as at Dec 2024

Hypoport (XTRA:HYQ)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hypoport SE develops and markets technology platforms for the financial services, property, and insurance industries in Germany, with a market cap of approximately €1.14 billion.

Operations: The company's revenue segments include €27.44 million from Holding, €66.60 million from the Insurance Platform, and a Segment Adjustment of €359.92 million.

Insider Ownership: 33.5%

Revenue Growth Forecast: 11.5% p.a.

Hypoport SE has demonstrated strong financial recovery, with third-quarter sales rising to €113.86 million and a net income turnaround to €1.81 million. The company's earnings are projected to grow significantly at 28.9% annually, surpassing the German market average, while revenue growth is also expected to outpace the market at 11.5%. Despite low forecasted return on equity and substantial one-off items affecting results, analysts anticipate a stock price increase of 50.9%.

XTRA:HYQ Earnings and Revenue Growth as at Dec 2024
XTRA:HYQ Earnings and Revenue Growth as at Dec 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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