Stock Analysis

3 Growth Companies With Insider Ownership Up To 26%

SHSE:688206
Source: Shutterstock

In a week marked by busy earnings reports and economic data, global markets showed mixed performances, with major indices like the Nasdaq Composite and S&P MidCap 400 reaching record highs before retreating. Amidst this volatility, growth stocks lagged behind value shares as cautious earnings reports from tech giants influenced investor sentiment. In such an environment, companies with high insider ownership can be particularly appealing to investors seeking alignment of interests between management and shareholders. This article explores three growth companies where insiders hold up to 26% ownership, potentially indicating confidence in their long-term prospects despite current market challenges.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)17.3%21.1%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Medley (TSE:4480)34%30.4%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Pharma Mar (BME:PHM)11.8%56.4%
Alkami Technology (NasdaqGS:ALKT)11.2%98.6%
Adveritas (ASX:AV1)21.2%144.2%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1527 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Kalpataru Projects International (NSEI:KPIL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kalpataru Projects International Limited offers engineering, procurement, and construction services across various sectors such as power transmission and distribution, buildings and factories, water, railways, oil and gas, and urban infrastructure both in India and internationally with a market cap of ₹199.79 billion.

Operations: The company generates revenue primarily through its Engineering, Procurement and Construction (EPC) segment, which accounts for ₹199.13 billion, alongside contributions from Development Projects totaling ₹2.71 billion.

Insider Ownership: 12.9%

Kalpataru Projects International is experiencing significant earnings growth, forecasted at 28.34% annually, surpassing the Indian market's average. Despite trading below its estimated fair value, challenges arise with tax disputes and penalties in multiple jurisdictions, including a recent INR 640.7 million demand by Indian authorities and a penalty of INR 13.9 million in Mauritania. While revenue growth is strong at 13.4% annually, interest payments are not well covered by earnings, indicating potential financial strain.

NSEI:KPIL Ownership Breakdown as at Nov 2024
NSEI:KPIL Ownership Breakdown as at Nov 2024

Primarius Technologies (SHSE:688206)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Primarius Technologies Co., Ltd. is a Chinese company that researches, designs, and develops EDA tools, with a market cap of CN¥9.23 billion.

Operations: Primarius Technologies Co., Ltd. generates its revenue primarily from the research, design, and development of EDA tools in China.

Insider Ownership: 16.2%

Primarius Technologies is poised for substantial growth, with revenue expected to rise by 27.5% annually, outpacing the Chinese market's average. Despite this, the company faces challenges with a net loss of CNY 57.16 million for the nine months ending September 2024 and a low forecasted return on equity of 0.8%. The firm has completed a share buyback program worth CNY 17.02 million, indicating confidence in its long-term prospects despite recent volatility.

SHSE:688206 Earnings and Revenue Growth as at Nov 2024
SHSE:688206 Earnings and Revenue Growth as at Nov 2024

Shenzhen Bluetrum Technology (SHSE:688332)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Shenzhen Bluetrum Technology Co., Ltd. is involved in the research, development, design, and sale of wireless audio SOC chips with a market cap of CN¥9.68 billion.

Operations: Shenzhen Bluetrum Technology Co., Ltd. generates revenue from its core activities in the research, development, and sale of wireless audio SOC chips.

Insider Ownership: 26.3%

Shenzhen Bluetrum Technology shows potential for growth, with revenue projected to increase by 25% annually, surpassing the Chinese market's average. Recent earnings highlight a rise in sales to CNY 1.25 billion for the first nine months of 2024, alongside net income growth. Despite high volatility and a low future return on equity forecast, its current valuation appears favorable relative to peers in the semiconductor industry.

SHSE:688332 Ownership Breakdown as at Nov 2024
SHSE:688332 Ownership Breakdown as at Nov 2024

Where To Now?

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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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