Stock Analysis

Top Growth Companies With High Insider Ownership To Watch

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In a week marked by mixed returns and notable sell-offs in large-cap growth stocks, investors are increasingly focusing on companies with strong fundamentals and high insider ownership. Such companies often signal confidence from those closest to the business, making them particularly interesting in today's volatile market environment.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.5%35%
Cettire (ASX:CTT)28.7%26.7%
Gaming Innovation Group (OB:GIG)26.7%37.4%
Clinuvel Pharmaceuticals (ASX:CUV)13.6%26.8%
Global Tax Free (KOSDAQ:A204620)18.1%72.4%
Seojin SystemLtd (KOSDAQ:A178320)29.8%58.7%
Credo Technology Group Holding (NasdaqGS:CRDO)14.4%60.9%
Vow (OB:VOW)31.7%97.7%
EHang Holdings (NasdaqGM:EH)32.8%74.3%
HANA Micron (KOSDAQ:A067310)20%97.4%

Click here to see the full list of 1457 stocks from our Fast Growing Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Zhejiang Weiming Environment Protection (SHSE:603568)

Simply Wall St Growth Rating: ★★★★★★

Overview: Zhejiang Weiming Environment Protection Co., Ltd. operates in the environmental protection industry, focusing on waste treatment and resource recovery, with a market cap of CN¥32.46 billion.

Operations: Zhejiang Weiming Environment Protection Co., Ltd. generates revenue primarily from the industrial segment, amounting to CN¥6.69 billion.

Insider Ownership: 24%

Earnings Growth Forecast: 24.5% p.a.

Zhejiang Weiming Environment Protection is forecasted to achieve significant revenue growth of 30.9% per year, outpacing the Chinese market's 13.6%. Its earnings are also expected to grow at a robust 24.48% annually, surpassing the market average of 22.2%. The company's Price-To-Earnings ratio of 14.4x indicates good value compared to the broader CN market at 27.4x, and its Return on Equity is projected to reach a high 21.7% in three years' time.

SHSE:603568 Earnings and Revenue Growth as at Jul 2024

Orbbec (SHSE:688322)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Orbbec Inc. designs, manufactures, and sells 3D vision sensors with a market cap of CN¥10.80 billion.

Operations: Orbbec Inc. generates revenue from the design, manufacturing, and sale of 3D vision sensors.

Insider Ownership: 36.4%

Earnings Growth Forecast: 107% p.a.

Orbbec's revenue is forecast to grow 37.6% annually, significantly outpacing the Chinese market's 13.6%. Earnings have grown 22.1% per year over the past five years and are expected to increase by 107% annually, becoming profitable within three years. Recent product integrations with NVIDIA Isaac Perceptor enhance its technological edge in autonomous mobile robots and other applications, while a strategic partnership with DigiKey and Computech streamlines customer access to its advanced 3D cameras.

SHSE:688322 Ownership Breakdown as at Jul 2024

Songcheng Performance DevelopmentLtd (SZSE:300144)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Songcheng Performance Development Co., Ltd operates in the performing arts industry in China and has a market cap of approximately CN¥21.41 billion.

Operations: The company's revenue primarily comes from its performing arts operations in China.

Insider Ownership: 14.5%

Earnings Growth Forecast: 47.8% p.a.

Songcheng Performance Development Ltd. has substantial insider ownership, aligning management's interests with shareholders. Despite a recent dividend increase, profit margins have declined from 8.4% to 3.6%. However, the company's earnings are forecast to grow significantly at 47.8% annually over the next three years, outpacing the Chinese market's growth rate of 22.2%. Trading at 40.1% below estimated fair value and expected revenue growth of 15.6% annually also indicate potential undervaluation and strong future performance prospects.

SZSE:300144 Ownership Breakdown as at Jul 2024

Key Takeaways

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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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