Stock Analysis

October 2024's Top Growth Companies With Strong Insider Ownership

TSE:2585
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As global markets navigate the impact of rising U.S. Treasury yields and a cautious economic outlook, investors are increasingly focused on growth stocks that demonstrate resilience. In this environment, companies with strong insider ownership often stand out as they suggest confidence from those who know the business best, potentially offering stability amid market fluctuations.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Archean Chemical Industries (NSEI:ACI)22.9%34%
Kirloskar Pneumatic (BSE:505283)30.3%26%
Arctech Solar Holding (SHSE:688408)37.8%29.8%
Laopu Gold (SEHK:6181)36.4%33.2%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Medley (TSE:4480)34%30.4%
Findi (ASX:FND)35.8%64.8%
HANA Micron (KOSDAQ:A067310)18.3%105.8%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1510 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.

Beijing Originwater Technology (SZSE:300070)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Beijing Originwater Technology Co., Ltd. operates in the water treatment industry both within China and internationally, with a market cap of CN¥17.83 billion.

Operations: Beijing Originwater Technology Co., Ltd. generates its revenue primarily from the water treatment sector, serving both domestic and international markets.

Insider Ownership: 14.1%

Earnings Growth Forecast: 35.4% p.a.

Beijing Originwater Technology faces challenges with declining revenue and net loss for the nine months ending September 2024, reporting CNY 4.75 billion in sales and a net loss of CNY 42.94 million. Despite this, its earnings are forecast to grow significantly at 35.36% annually, outpacing the broader Chinese market's expected growth rate of 24.2%. However, the company's volatile share price and low return on equity forecast indicate potential risks for investors seeking stability in high insider ownership firms.

SZSE:300070 Ownership Breakdown as at Oct 2024
SZSE:300070 Ownership Breakdown as at Oct 2024

Lifedrink Company (TSE:2585)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lifedrink Company, Inc. manufactures and sells beverages in Japan with a market cap of ¥88.58 billion.

Operations: The company's revenue primarily comes from its Beverage and Leaf Business, which generated ¥39.57 billion.

Insider Ownership: 14.6%

Earnings Growth Forecast: 12.1% p.a.

Lifedrink Company is expected to see revenue growth of 8.5% annually, outpacing the JP market's 4.2%, with earnings projected to grow at 12.1% per year. Despite high debt levels and recent share price volatility, the company trades at a significant discount to its estimated fair value and has a strong return on equity forecast of 23.4%. A recent stock split may enhance liquidity and attract more investors, though insider trading activity remains unclear.

TSE:2585 Ownership Breakdown as at Oct 2024
TSE:2585 Ownership Breakdown as at Oct 2024

SHIFT (TSE:3697)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SHIFT Inc. offers software quality assurance and testing solutions in Japan, with a market cap of ¥243.67 billion.

Operations: The company's revenue segments include Software Testing Related Services at ¥71.34 billion and Software Development Related Services at ¥35.01 billion.

Insider Ownership: 35.4%

Earnings Growth Forecast: 33.5% p.a.

SHIFT Inc. is projected to achieve annual revenue growth of 19.3%, surpassing the JP market's 4.2% and with earnings expected to rise significantly at 33.5% annually, indicating robust growth potential despite a highly volatile share price recently. Trading at a considerable discount to its fair value, SHIFT's return on equity is forecasted at an impressive 25.6%. A recent buyback program aims to enhance shareholder value, though insider trading activity over the past three months remains unclear.

TSE:3697 Earnings and Revenue Growth as at Oct 2024
TSE:3697 Earnings and Revenue Growth as at Oct 2024

Taking Advantage

  • Unlock our comprehensive list of 1510 Fast Growing Companies With High Insider Ownership by clicking here.
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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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