Spotlight On 3 Insider-Owned Growth Companies

In a week marked by record highs for major U.S. indexes like the S&P 500 and Nasdaq Composite, growth stocks have outperformed value stocks significantly, highlighting a strong investor appetite for companies with robust expansion potential. As global markets navigate mixed economic signals and geopolitical developments, insider ownership in growth companies can be an indicator of confidence in their future prospects, making them particularly interesting to investors seeking alignment between management and shareholder interests.

Top 10 Growth Companies With High Insider Ownership

Click here to see the full list of 1508 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.

Herfy Food Services (SASE:6002)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Herfy Food Services Company operates and franchises restaurants in Saudi Arabia and internationally, with a market cap of SAR1.64 billion.

Operations: The company's revenue segments include Restaurants and Catering at SAR897.66 million, Meat Factory at SAR202.06 million, and Bakeries and Other at SAR188.63 million.

Insider Ownership: 15.3%

Earnings Growth Forecast: 75.1% p.a.

Herfy Food Services shows potential as a growth company with high insider ownership, despite recent challenges. The company reported a net loss of SAR 33.37 million for Q3 2024, yet its revenue is expected to grow at 6.6% annually, outpacing the Saudi market's decline. While profitability is anticipated within three years, the current dividend yield of 1.98% isn't fully covered by earnings. Herfy trades at a good value compared to peers and industry standards.

• Click here and access our complete growth analysis report to understand the dynamics of Herfy Food Services.
• Insights from our recent valuation report point to the potential undervaluation of Herfy Food Services shares in the market.

Chongqing Zaisheng Technology (SHSE:603601)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Chongqing Zaisheng Technology Co., Ltd. engages in the research, manufacture, and marketing of glass microfiber products for purification and energy-saving markets in China, with a market cap of CN¥3.97 billion.

Operations: The company generates revenue from its glass microfiber products, which serve the purification and energy-saving sectors within the Chinese market.

Insider Ownership: 37%

Earnings Growth Forecast: 55.9% p.a.

Chongqing Zaisheng Technology's earnings are expected to grow significantly at 55.92% annually, surpassing the Chinese market's growth rate of 25.9%. Despite this, recent financial results show a decline in net income to CNY 90.88 million from CNY 117.27 million year-over-year, with profit margins dropping from 7.4% to 0.8%. The company's dividend yield of 0.77% is not well covered by earnings or free cash flow, and revenue growth forecasts remain below the significant threshold at 18.4%.

• Unlock comprehensive insights into our analysis of Chongqing Zaisheng Technology stock in this growth report.
• Insights from our recent valuation report point to the potential overvaluation of Chongqing Zaisheng Technology shares in the market.

Sansec Technology (SHSE:688489)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Sansec Technology Co., Ltd. focuses on the research, development, and production of commercial cryptographic products and solutions for internet information security in China, with a market cap of CN¥4.45 billion.

Operations: Sansec Technology Co., Ltd. generates its revenue primarily from the development and production of cryptographic products and solutions aimed at enhancing internet information security in China.

Insider Ownership: 30.1%

Earnings Growth Forecast: 44.1% p.a.

Sansec Technology's earnings are projected to grow significantly at 44.1% annually, outpacing the Chinese market's 25.9% growth rate, while revenue is expected to increase by 25.3% per year. Despite this positive outlook, recent financial results show a decline in net income from CNY 39.7 million to CNY 14.16 million year-over-year, with profit margins dropping from 29% to 11.1%. The company completed a share buyback of approximately CNY 79.96 million, enhancing shareholder value amidst volatile share prices and low forecasted return on equity at 6.8%.

• Delve into the full analysis future growth report here for a deeper understanding of Sansec Technology.
• Our expertly prepared valuation report Sansec Technology implies its share price may be too high.

Taking Advantage

• Navigate through the entire inventory of 1508 Fast Growing Companies With High Insider Ownership here.
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Seeking Other Investments?

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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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