Stock Analysis

3 Growth Companies Insiders Are Betting On

Published

As global markets grapple with inflation fears and political uncertainties, U.S. equities have experienced notable declines, with growth stocks underperforming their value counterparts. Amid this volatility, insider ownership can be a key indicator of confidence in a company's future prospects, as insiders often have unique insights into the business's potential.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
SKS Technologies Group (ASX:SKS)29.7%24.8%
Propel Holdings (TSX:PRL)36.8%38.9%
CD Projekt (WSE:CDR)29.7%32.2%
Pharma Mar (BME:PHM)11.9%56.2%
Plenti Group (ASX:PLT)12.8%120.1%
Fine M-TecLTD (KOSDAQ:A441270)17.2%131.1%
Elliptic Laboratories (OB:ELABS)26.8%111.4%
Credo Technology Group Holding (NasdaqGS:CRDO)13.2%66.3%
Fulin Precision (SZSE:300432)13.6%66.7%
HANA Micron (KOSDAQ:A067310)18.3%110.9%

Click here to see the full list of 1465 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.

Do-Fluoride New Materials (SZSE:002407)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Do-Fluoride New Materials Co., Ltd. develops, produces, and sells inorganic fluorides, electronic chemicals, lithium-ion batteries, and related materials both in China and internationally with a market cap of CN¥13.56 billion.

Operations: The company's revenue segments include the development, production, and sale of inorganic fluorides, electronic chemicals, lithium-ion batteries, and related materials in both domestic and international markets.

Insider Ownership: 13.9%

Revenue Growth Forecast: 17.2% p.a.

Do-Fluoride New Materials is experiencing significant earnings growth, forecasted at 73.7% annually, outpacing the Chinese market's average. Despite this, recent financial results show a decline in profit margins and net income compared to last year. The company has announced a CNY 300 million share repurchase program, indicating confidence from management despite lower profitability. Insider ownership remains high with no substantial insider trading activity recently reported.

SZSE:002407 Earnings and Revenue Growth as at Jan 2025

Beijing Originwater Technology (SZSE:300070)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Beijing Originwater Technology Co., Ltd. is engaged in the water treatment industry both in China and internationally, with a market cap of CN¥17.21 billion.

Operations: The company generates revenue primarily from its operations in the water treatment sector, serving both domestic and international markets.

Insider Ownership: 13.2%

Revenue Growth Forecast: 14.3% p.a.

Beijing Originwater Technology is forecasted to achieve significant annual earnings growth of 35.4%, surpassing the Chinese market average. However, recent financial results show a decline in revenue and a shift from net income to a net loss over the past year. Profit margins have also decreased significantly. Despite these challenges, insider ownership remains substantial with no recent insider trading activity reported, indicating potential confidence from insiders amidst ongoing strategic adjustments discussed in their latest shareholder meeting.

SZSE:300070 Earnings and Revenue Growth as at Jan 2025

Winning Health Technology Group (SZSE:300253)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Winning Health Technology Group Co., Ltd. operates in the healthcare technology sector, providing digital solutions and services, with a market cap of CN¥13.99 billion.

Operations: Winning Health Technology Group Co., Ltd. generates revenue through its healthcare technology solutions and services, with a market cap of CN¥13.99 billion.

Insider Ownership: 22.5%

Revenue Growth Forecast: 19.2% p.a.

Winning Health Technology Group is expected to achieve significant annual earnings growth of 34.9%, outpacing the Chinese market average. Despite a lower forecasted return on equity of 10.2% in three years, the company's price-to-earnings ratio of 39.1x remains attractive compared to industry peers. Recent buyback activity, totaling CNY 79.99 million for 10,037,100 shares, suggests management confidence in its future prospects amidst ongoing revenue growth challenges and large one-off items affecting financial results.

SZSE:300253 Ownership Breakdown as at Jan 2025

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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