Stock Analysis

3 Growth Companies With Insider Ownership Up To 21%

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As global markets continue to reach record highs, with major indices like the Dow Jones Industrial Average and S&P 500 Index posting significant gains, investor sentiment remains buoyed by domestic policy developments and geopolitical events. Amidst this backdrop of market optimism, identifying growth companies with substantial insider ownership can be an attractive strategy for investors seeking alignment between management interests and shareholder value.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
SKS Technologies Group (ASX:SKS)32.4%24.8%
Propel Holdings (TSX:PRL)36.9%37.6%
On Holding (NYSE:ONON)19.1%29.6%
Pharma Mar (BME:PHM)11.8%56.9%
Medley (TSE:4480)34%31.7%
CD Projekt (WSE:CDR)29.7%28.6%
Elliptic Laboratories (OB:ELABS)26.8%111.4%
EHang Holdings (NasdaqGM:EH)32.8%81.5%
Alkami Technology (NasdaqGS:ALKT)10.9%98.6%
Credo Technology Group Holding (NasdaqGS:CRDO)13.7%95%

Click here to see the full list of 1517 stocks from our Fast Growing Companies With High Insider Ownership screener.

Here we highlight a subset of our preferred stocks from the screener.

Hangzhou Lion ElectronicsLtd (SHSE:605358)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Hangzhou Lion Electronics Co., Ltd specializes in the R&D, production, and sale of semiconductor silicon wafers, power devices, and compound semiconductor RF chips in China with a market cap of CN¥17.86 billion.

Operations: The company generates revenue from its semiconductor silicon wafers, power devices, and compound semiconductor radio frequency chips.

Insider Ownership: 18.8%

Hangzhou Lion Electronics Ltd. is poised for significant growth, with revenue expected to increase by 23.7% annually, outpacing the Chinese market's average. Despite a recent net loss of CNY 54.34 million for the first nine months of 2024, the company has initiated a share repurchase program worth CNY 50 million to bolster employee incentives. While profitability is anticipated within three years, its forecasted return on equity remains low at 5.2%.

SHSE:605358 Earnings and Revenue Growth as at Dec 2024

Eyebright Medical Technology (Beijing) (SHSE:688050)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Eyebright Medical Technology (Beijing) Co., Ltd. operates in the medical technology sector and has a market capitalization of CN¥17.30 billion.

Operations: The company generates revenue primarily from its Medical Products segment, amounting to CN¥1.36 billion.

Insider Ownership: 21.5%

Eyebright Medical Technology (Beijing) is experiencing robust growth, with earnings and revenue forecasted to grow significantly above the Chinese market average. The company reported sales of CNY 1.08 billion for the first nine months of 2024, up from CNY 668.1 million a year earlier, alongside a net income increase to CNY 317.59 million from CNY 251.97 million. Despite high non-cash earnings quality, return on equity is expected to remain moderate at 18.1%.

SHSE:688050 Earnings and Revenue Growth as at Dec 2024

Jiangsu Nata Opto-electronic Material (SZSE:300346)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Jiangsu Nata Opto-electronic Material Co., Ltd. operates in the optoelectronic materials industry and has a market cap of CN¥21.31 billion.

Operations: The company's revenue is primarily derived from its Semiconductor Materials segment, which generated CN¥1.60 billion.

Insider Ownership: 19.1%

Jiangsu Nata Opto-electronic Material shows strong growth potential with revenue forecasted to increase by 21.8% annually, outpacing the Chinese market's average. Recent earnings for the first nine months of 2024 reported sales of CNY 1.76 billion, up from CNY 1.28 billion year-over-year, and net income rose to CNY 265.61 million from CNY 215.37 million. Despite a volatile share price and low future return on equity at 14.3%, earnings are expected to grow significantly at 24.5% per year over the next three years.

SZSE:300346 Ownership Breakdown as at Dec 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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