Stock Analysis

3 Growth Companies With High Insider Ownership And 36% Earnings Growth

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As global markets navigate a landscape marked by cooling inflation and strong bank earnings, major U.S. stock indexes have rebounded, with value stocks recently outperforming growth shares. In this context of shifting economic indicators and investor sentiment, identifying growth companies with high insider ownership can offer insights into potential investment opportunities.

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%30.6%
Pharma Mar (BME:PHM)11.9%55.1%
Waystream Holding (OM:WAYS)11.3%113.3%
On Holding (NYSE:ONON)19.1%29.8%
Kingstone Companies (NasdaqCM:KINS)20.8%24.9%
Fine M-TecLTD (KOSDAQ:A441270)17.2%135%
Fulin Precision (SZSE:300432)13.6%71%
Elliptic Laboratories (OB:ELABS)26.8%121.1%

Click here to see the full list of 1462 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

NEXTIN (KOSDAQ:A348210)

Simply Wall St Growth Rating: ★★★★★★

Overview: NEXTIN, Inc. manufactures defect inspection and metrology systems for the semiconductor and display industries in South Korea, with a market cap of ₩660.51 billion.

Operations: The company generates revenue of ₩101.98 billion from its semiconductor equipment and services segment.

Insider Ownership: 12.1%

Earnings Growth Forecast: 36.3% p.a.

NEXTIN demonstrates strong growth potential with forecasted revenue and earnings growth rates of 29.8% and 36.3% per year, respectively, outpacing the Korean market averages. Despite recent negative sales figures, net income has shown significant improvement, reaching KRW 9,126.46 million in the latest quarter compared to KRW 4,756.45 million a year ago. The company recently completed a buyback program worth KRW 4,991.89 million, reflecting confidence in its valuation and future prospects.

KOSDAQ:A348210 Earnings and Revenue Growth as at Jan 2025

LG (KOSE:A003550)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: LG Corp., with a market cap of ₩11.36 trillion, operates through its subsidiaries in the electronics, chemicals, and communication and services industries.

Operations: Revenue segments include ₩6.54 billion from LG CNS Co., LTD, ₩930.18 million from LG Corp., and ₩297.27 million from S & I Corporation.

Insider Ownership: 38.5%

Earnings Growth Forecast: 29.2% p.a.

LG Corp. showcases potential for growth with expected annual earnings expansion of 29.2%, surpassing the Korean market's average. Despite recent declines in net income, LG remains undervalued, trading at 82.2% below its estimated fair value and offering good relative value compared to peers. The open-sourcing of AI model EXAONE 3.5 could enhance innovation and productivity, supporting future growth prospects as LG continues to advance its AI capabilities without insider trading activities affecting stock perception recently.

KOSE:A003550 Ownership Breakdown as at Jan 2025

Xingye Leather Technology (SZSE:002674)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Xingye Leather Technology Co., Ltd. and its subsidiaries supply leather materials in China, with a market cap of CN¥2.73 billion.

Operations: Revenue Segments (in millions of CN¥):null

Insider Ownership: 15%

Earnings Growth Forecast: 33.3% p.a.

Xingye Leather Technology is positioned for growth with earnings forecasted to increase by 33.3% annually, outpacing the Chinese market average. Despite a recent decline in net income from CNY 173.56 million to CNY 109.73 million, the company's price-to-earnings ratio of 24.1x suggests it is undervalued relative to the market's 34.6x. While revenue growth at 14.6% per year lags behind top-tier benchmarks, it still exceeds overall market expectations without significant insider trading activity recently impacting stock perception.

SZSE:002674 Earnings and Revenue Growth as at Jan 2025

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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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