Stock Analysis

3 Growth Companies With Strong Insider Confidence

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In recent weeks, global markets have been influenced by rising U.S. Treasury yields and a cautious economic outlook, impacting equities and leading to mixed performances across major indices. Amid this backdrop, growth companies with high insider ownership can signal strong insider confidence and alignment with shareholder interests, making them noteworthy in today's market environment.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)17.3%21.1%
Arctech Solar Holding (SHSE:688408)37.8%25.3%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Medley (TSE:4480)34%30.4%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Findi (ASX:FND)35.8%64.8%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1530 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Chengdu M&S Electronics TechnologyLtd (SHSE:688311)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Chengdu M&S Electronics Technology Co., Ltd. (SHSE:688311) operates in the electronics sector and has a market cap of CN¥4.66 billion.

Operations: Revenue segments for Chengdu M&S Electronics Technology Co., Ltd. are not provided in the given text.

Insider Ownership: 30%

Chengdu M&S Electronics Technology Ltd. is forecasted to achieve substantial revenue growth of 91.6% annually, significantly outpacing the market's average, and aims for profitability within three years. However, recent earnings reports reveal a challenging financial period with sales dropping to CNY 87.01 million from CNY 274.26 million year-over-year and a net loss of CNY 127.61 million compared to previous profits, highlighting volatility in its financial performance despite optimistic growth projections.

SHSE:688311 Earnings and Revenue Growth as at Oct 2024

Qi An Xin Technology Group (SHSE:688561)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Qi An Xin Technology Group Inc. is a cybersecurity company offering products and services to government, enterprises, and institutions in China and internationally, with a market cap of CN¥21.31 billion.

Operations: Qi An Xin Technology Group Inc. generates revenue through its cybersecurity products and services tailored for government, enterprises, and various institutions both domestically in China and internationally.

Insider Ownership: 22%

Qi An Xin Technology Group's insider ownership aligns with its growth potential, as earnings are forecast to grow at 42% annually, outpacing the Chinese market. Despite a net loss of CNY 1.18 billion for the nine months ending September 2024 and volatile share prices, it trades at a good value compared to peers. Revenue is expected to grow at 14.9% per year, driven by strategic transactions like CEC Financial's recent acquisition of a 5% stake.

SHSE:688561 Ownership Breakdown as at Oct 2024

SolaX Power Network Technology (Zhejiang) (SHSE:688717)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SolaX Power Network Technology (Zhejiang) Co., Ltd. (ticker: SHSE:688717) is a company engaged in the development and production of solar power inverters, with a market cap of CN¥9.36 billion.

Operations: Unfortunately, the provided text does not include specific revenue segments or figures for SolaX Power Network Technology (Zhejiang) Co., Ltd. If you can provide the relevant data, I'd be happy to help summarize it.

Insider Ownership: 35.1%

SolaX Power Network Technology's insider ownership supports its growth trajectory, with earnings forecasted to grow 53% annually, significantly outpacing the Chinese market. Despite a sharp decline in net income to CNY 160.47 million for the nine months ending September 2024 and recent volatility in share price, revenue is expected to grow at an impressive 33.9% per year. The stock trades slightly below its estimated fair value and analysts anticipate a price increase of 23.6%.

SHSE:688717 Earnings and Revenue Growth as at Oct 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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