Stock Analysis

3 Growth Stocks Insiders Are Betting On

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In the wake of recent global market shifts, U.S. stocks have rallied to record highs, fueled by optimism surrounding potential policy changes following a "red sweep" in the elections. As investors navigate these evolving conditions, insider ownership can serve as a key indicator of confidence in a company's growth prospects. Stocks with high insider ownership often suggest that those closest to the company believe strongly in its future success, making them compelling considerations for growth-focused portfolios amidst current economic uncertainties.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.4%36.6%
Archean Chemical Industries (NSEI:ACI)22.9%42.1%
Laopu Gold (SEHK:6181)36.4%33.9%
Medley (TSE:4480)34%30.4%
Seojin SystemLtd (KOSDAQ:A178320)31.1%49.1%
Findi (ASX:FND)34.8%64.8%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
Brightstar Resources (ASX:BTR)16.2%84.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1524 stocks from our Fast Growing Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, and furniture markets across Northern Europe, Southern Europe, the Americas, and the Asia Pacific with a market cap of €1.03 billion.

Operations: Revenue segments are as follows: Americas: €172.19 million, Asia-Pacific: €124.33 million, and Segment Adjustment: €217.02 million.

Insider Ownership: 19.6%

Earnings Growth Forecast: 32.1% p.a.

Lectra exhibits significant growth potential with expected annual earnings growth of 32.1%, surpassing the French market's average. Despite a recent drop from the S&P Global BMI Index, analysts anticipate a 23.5% stock price increase, and it trades at 42.6% below its estimated fair value. However, revenue growth is slower than ideal at 8.5% annually, and recent earnings show a decline in net income to €22.77 million for nine months ending September 2024 compared to last year.

ENXTPA:LSS Earnings and Revenue Growth as at Nov 2024

Kunshan GuoLi Electronic Technology (SHSE:688103)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Kunshan GuoLi Electronic Technology Co., Ltd. operates in the electronic technology sector with a market cap of CN¥4.89 billion.

Operations: The company's revenue segment is primarily derived from the research and development, production, and sales of vacuum devices, amounting to CN¥753.59 million.

Insider Ownership: 30.4%

Earnings Growth Forecast: 59.4% p.a.

Kunshan GuoLi Electronic Technology is poised for strong growth, with revenue expected to increase by 29.1% annually, outpacing the Chinese market's average. Earnings are projected to grow significantly at 59.4% per year. Despite a recent decline in profit margins and net income, the company is expanding internationally through a technical collaboration in India to manufacture HVDC components, aligning with India's Make in India initiative. Recent share buybacks demonstrate confidence in future prospects.

SHSE:688103 Earnings and Revenue Growth as at Nov 2024

Ningbo Solartron TechnologyLtd (SHSE:688299)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Ningbo Solartron Technology Co., Ltd. is engaged in the research, development, production, and sale of functional films both in China and internationally, with a market cap of CN¥5.34 billion.

Operations: The company's revenue from Special Functional Film amounts to CN¥1.33 billion.

Insider Ownership: 16.2%

Earnings Growth Forecast: 59.5% p.a.

Ningbo Solartron Technology Ltd. shows strong growth potential, with revenue forecast to grow at 26.7% annually, surpassing the Chinese market average. Earnings are expected to rise significantly by 59.5% per year, although recent results show a decline in net income and profit margins from last year. Despite no substantial insider trading activity recently, the company's high insider ownership could align management's interests with shareholders', supporting its growth trajectory amidst current financial challenges.

SHSE:688299 Ownership Breakdown as at Nov 2024

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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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