Stock Analysis

3 Growth Companies Insiders Are Betting On

OB:NOD
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As global markets navigate a complex landscape marked by fluctuating oil prices and evolving monetary policies, investors are keenly observing the performance of various indices, with the tech-heavy Nasdaq Composite recently gaining momentum due to positive earnings surprises. In such an environment, growth companies with high insider ownership can offer unique insights into potential opportunities, as insiders often have a deep understanding of their company's prospects and confidence in its future trajectory.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Atlas Energy Solutions (NYSE:AESI)29.1%41.9%
Clinuvel Pharmaceuticals (ASX:CUV)10.4%27.4%
KebNi (OM:KEBNI B)36.3%86.1%
Findi (ASX:FND)35.8%64.8%
HANA Micron (KOSDAQ:A067310)18.3%105.8%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%106.4%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1486 stocks from our Fast Growing Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

Nordic Semiconductor (OB:NOD)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Nordic Semiconductor ASA is a fabless semiconductor company that designs, sells, and delivers integrated circuits and related products for short- and long-range wireless applications across Europe, the Americas, and the Asia Pacific, with a market cap of NOK19.01 billion.

Operations: The company generates revenue primarily through the design and sale of integrated circuits and related solutions, amounting to $445.67 million.

Insider Ownership: 10.6%

Nordic Semiconductor is forecast to achieve profitability within three years, surpassing average market growth expectations. Despite recent volatility and a net loss of US$15.05 million in Q2 2024, the company anticipates revenue between US$150 million and US$170 million for Q3 2024, reflecting an 11% to 26% year-on-year increase. Revenue growth is projected at 16.9% annually, outpacing the Norwegian market's growth rate but below the high-growth threshold of 20%.

OB:NOD Earnings and Revenue Growth as at Oct 2024
OB:NOD Earnings and Revenue Growth as at Oct 2024

Sunstone Development (SHSE:603612)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Sunstone Development Co., Ltd. specializes in the research, development, production, and sales of prebaked carbon anodes for the aluminum industry both in China and internationally, with a market cap of CN¥6.76 billion.

Operations: Revenue Segments (in millions of CN¥): Prebaked carbon anodes for the aluminum industry.

Insider Ownership: 33%

Sunstone Development is forecast to achieve profitability within three years, with revenue expected to grow at 21.1% annually, outpacing the Chinese market's growth rate. Despite low return on equity projections and interest payments not being well covered by earnings, the company trades at good value compared to peers. Recent developments include a completed acquisition of a 5.01% stake by Ningju Yingshanhong No. 3 Private Equity Investment Fund for approximately CNY 300 million, indicating confidence from institutional investors.

SHSE:603612 Earnings and Revenue Growth as at Oct 2024
SHSE:603612 Earnings and Revenue Growth as at Oct 2024

Guangzhou Fangbang ElectronicsLtd (SHSE:688020)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangzhou Fangbang Electronics Co., Ltd is involved in the research, development, production, sale, and service of electronic materials in China with a market cap of CN¥3.18 billion.

Operations: Guangzhou Fangbang Electronics Co., Ltd generates its revenue through the research, development, production, sale, and service of electronic materials within China.

Insider Ownership: 28.2%

Guangzhou Fangbang Electronics is forecast to achieve profitability within three years, with expected revenue growth of 51% annually, significantly outpacing the Chinese market. Despite recent volatility in its share price and a net loss of CNY 21.96 million for the first half of 2024, the company trades at a discount to its estimated fair value. No substantial insider trading activity has been reported recently, but earnings are projected to grow by over 200% annually.

SHSE:688020 Earnings and Revenue Growth as at Oct 2024
SHSE:688020 Earnings and Revenue Growth as at Oct 2024

Summing It All Up

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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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