Stock Analysis

3 Growth Companies With High Insider Ownership

SZSE:002915
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As global markets navigate a challenging landscape marked by cautious Fed commentary and political uncertainties, investors are increasingly focused on the resilience of growth companies with strong insider ownership. In such volatile times, stocks with high insider ownership can be appealing as they often indicate confidence from those who know the company best, potentially aligning management's interests with those of shareholders.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
SKS Technologies Group (ASX:SKS)29.7%24.8%
Propel Holdings (TSX:PRL)23.9%37.6%
On Holding (NYSE:ONON)19.1%29.4%
Medley (TSE:4480)34%31.7%
Pharma Mar (BME:PHM)11.8%56.2%
CD Projekt (WSE:CDR)29.7%27%
EHang Holdings (NasdaqGM:EH)32.8%81.5%
Credo Technology Group Holding (NasdaqGS:CRDO)13.4%66.3%
Elliptic Laboratories (OB:ELABS)26.8%111.4%
Findi (ASX:FND)34.8%112.9%

Click here to see the full list of 1512 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.

Pexip Holding (OB:PEXIP)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Pexip Holding ASA is a video technology company that offers an end-to-end video conferencing platform and digital infrastructure globally, with a market cap of NOK4.60 billion.

Operations: The company's revenue primarily comes from the Sale of Collaboration Services, amounting to NOK1.07 billion.

Insider Ownership: 19.1%

Revenue Growth Forecast: 12.6% p.a.

Pexip Holding's recent earnings report shows a positive turnaround with NOK 5.8 million net income in Q3 2024, compared to a loss last year. Despite forecasts of modest revenue growth at 12.6% annually, the company is expected to achieve above-average profit growth over the next three years. While significant insider selling occurred recently, Pexip trades at a substantial discount to its estimated fair value, reflecting potential for future appreciation amidst cautious investor sentiment.

OB:PEXIP Ownership Breakdown as at Dec 2024
OB:PEXIP Ownership Breakdown as at Dec 2024

Zhejiang Zhongxin Fluoride MaterialsLtd (SZSE:002915)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zhejiang Zhongxin Fluoride Materials Co., Ltd engages in the research, development, production, and sale of fluorine fine chemicals in China with a market cap of CN¥4.41 billion.

Operations: Zhejiang Zhongxin Fluoride Materials Co., Ltd generates its revenue through the research, development, production, and sale of fluorine fine chemicals in China.

Insider Ownership: 20.7%

Revenue Growth Forecast: 30.8% p.a.

Zhejiang Zhongxin Fluoride Materials is forecast to achieve strong revenue growth of 30.8% annually, surpassing the market average. Despite a current net loss of CNY 42.99 million for the first nine months of 2024, profitability is expected within three years, indicating potential for future expansion. However, the company's financial position shows operating cash flow inadequately covering debt and a volatile share price adds risk. Recent exclusion from the S&P Global BMI Index may impact investor perception.

SZSE:002915 Ownership Breakdown as at Dec 2024
SZSE:002915 Ownership Breakdown as at Dec 2024

Msscorps (TWSE:6830)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Msscorps Co., Ltd. is involved in the testing and analysis of electronic materials across Asia, the United States, and internationally, with a market cap of NT$8.36 billion.

Operations: The company generates its revenue primarily from the Testing and Analysis Service segment, amounting to NT$1.93 billion.

Insider Ownership: 10.9%

Revenue Growth Forecast: 17.4% p.a.

Msscorps is projected to experience significant earnings growth of 71.54% annually, outpacing the Taiwan market's average. However, recent earnings reports reveal a sharp decline in net income for the third quarter and nine months of 2024, with diluted EPS dropping from TWD 1.54 to TWD 0.26 year-on-year. Despite high non-cash earnings quality, revenue growth lags at 17.4% per year and profit margins have decreased significantly from last year, indicating potential challenges ahead.

TWSE:6830 Ownership Breakdown as at Dec 2024
TWSE:6830 Ownership Breakdown as at Dec 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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