Stock Analysis

3 Growth Stocks With High Insider Ownership To Consider

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As global markets navigate a complex landscape marked by rate cuts from the European Central Bank and fluctuations in U.S. indices, investors are increasingly focused on strategic opportunities for growth. Amidst this backdrop, stocks with high insider ownership can offer unique insights into a company's potential, as insiders often have a vested interest in its long-term success and alignment with shareholder value.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Kirloskar Pneumatic (BSE:505283)30.3%30.1%
Arctech Solar Holding (SHSE:688408)37.8%29.8%
Laopu Gold (SEHK:6181)36.4%33.2%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Medley (TSE:4480)34%30.4%
Findi (ASX:FND)35.8%64.8%
HANA Micron (KOSDAQ:A067310)18.3%105.8%
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 1485 stocks from our Fast Growing Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Zhuzhou Huarui Precision Cutting ToolsLtd (SHSE:688059)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zhuzhou Huarui Precision Cutting Tools Co., Ltd. operates in the precision cutting tools industry and has a market capitalization of CN¥3.27 billion.

Operations: The company generates revenue primarily from its Machinery & Industrial Equipment segment, amounting to CN¥847.60 million.

Insider Ownership: 15.7%

Zhuzhou Huarui Precision Cutting Tools Ltd. shows promising growth potential with recent earnings reflecting a revenue increase to CNY 410.42 million and net income rising to CNY 71.94 million for the half year ended June 2024. Despite high share price volatility, its Price-To-Earnings ratio of 19.5x suggests good value relative to the market average of 33.5x. The company's forecasted annual earnings growth of 28% surpasses both industry and market averages, although debt coverage by operating cash flow remains a concern.

SHSE:688059 Ownership Breakdown as at Oct 2024

Dioo Microcircuits Jiangsu (SHSE:688381)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Dioo Microcircuits Jiangsu specializes in the research, development, design, and manufacture of high-performance analog chips in China with a market cap of CN¥4.97 billion.

Operations: I'm sorry, but it seems there is no specific revenue segment information provided in the text you shared. If you have more detailed data on their revenue segments, I would be happy to help summarize it for you.

Insider Ownership: 23.2%

Dioo Microcircuits Jiangsu is experiencing significant growth, with forecasted annual earnings growth of 60%, outpacing the Chinese market average. Despite a volatile share price and low return on equity projections, its revenue is expected to grow by 25.3% annually, surpassing market expectations. Recent buyback activities completed for CNY 85.35 million reflect strategic financial management, although profit margins have decreased from last year’s figures due to large one-off items impacting results.

SHSE:688381 Earnings and Revenue Growth as at Oct 2024

Runjian (SZSE:002929)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Runjian Co., Ltd. is a communication technology service company focused on network construction and maintenance in China, with a market cap of CN¥8.59 billion.

Operations: The company's revenue segments include CN¥0.36 billion from Computing Power Service, CN¥1.66 billion from the Energy Network Business, CN¥2.05 billion from the Information Network Business, and CN¥4.58 billion from the Communication Network Business.

Insider Ownership: 32.4%

Runjian is poised for growth, with earnings expected to increase 27.6% annually, outpacing the Chinese market. However, its return on equity is projected to remain low at 10.7%. The company's price-to-earnings ratio of 22.1x suggests it may be undervalued relative to the market average of 33.5x. Recent M&A activity saw a CNY 460 million stake acquisition by Guangdong Shengyue Equity Investment Fund Partnership, indicating confidence in Runjian's potential despite recent revenue and net income declines.

SZSE:002929 Earnings and Revenue Growth as at Oct 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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