Stock Analysis

Three Elite Growth Companies With High Insider Ownership

Published

Global markets have shown mixed performance recently, with small-cap and value shares outpacing large-cap growth stocks. Despite this rotation, certain elite growth companies continue to attract attention due to their robust fundamentals and high insider ownership. In the current market environment, finding a good stock often means looking for companies where insiders have significant ownership stakes. This can signal confidence in the company's future prospects and align management's interests with those of shareholders.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Kirloskar Pneumatic (BSE:505283)30.6%30.1%
Cettire (ASX:CTT)28.7%26.7%
Arctech Solar Holding (SHSE:688408)38.7%28.4%
Global Tax Free (KOSDAQ:A204620)18.1%72.4%
Seojin SystemLtd (KOSDAQ:A178320)29.8%58.7%
Credo Technology Group Holding (NasdaqGS:CRDO)14.4%60.9%
Plenti Group (ASX:PLT)12.8%106.4%
Vow (OB:VOW)31.7%97.7%
EHang Holdings (NasdaqGM:EH)32.8%74.3%
HANA Micron (KOSDAQ:A067310)20%97.4%

Click here to see the full list of 1459 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's review some notable picks from our screened stocks.

Piesat Information Technology (SHSE:688066)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Piesat Information Technology Co., Ltd. provides satellite internet services in China and has a market cap of CN¥4.07 billion.

Operations: Piesat's revenue from satellite application services is CN¥1.77 billion.

Insider Ownership: 21.6%

Piesat Information Technology is forecasted to achieve substantial revenue growth of 32.7% annually, outpacing the Chinese market's 13.6%. Analysts agree the stock price could rise by 73.8%, although it has been highly volatile recently. Earnings are expected to grow at an impressive rate of 93.47% per year, with profitability anticipated within three years. However, its return on equity is projected to remain low at 11%, and debt coverage by operating cash flow is inadequate.

SHSE:688066 Ownership Breakdown as at Jul 2024

Willfar Information Technology (SHSE:688100)

Simply Wall St Growth Rating: ★★★★★★

Overview: Willfar Information Technology Co., Ltd. provides smart utility services and IoT solutions in China and internationally, with a market cap of CN¥17.34 billion.

Operations: Willfar Information Technology Co., Ltd. generates revenue through its smart utility services and IoT solutions in both domestic and international markets.

Insider Ownership: 21.3%

Willfar Information Technology shows strong growth potential with earnings forecasted to grow at 22.49% annually, outpacing the Chinese market. Recent earnings reported a significant increase in sales (CNY 1.22 billion) and net income (CNY 271.82 million). The company’s price-to-earnings ratio of 31.8x is below the industry average, indicating good value. Despite an unstable dividend track record, high insider ownership aligns management interests with shareholders, enhancing its appeal as a growth stock.

SHSE:688100 Earnings and Revenue Growth as at Jul 2024

Yuanjie Semiconductor Technology (SHSE:688498)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Yuanjie Semiconductor Technology Co., Ltd. (SHSE:688498) is a company focused on semiconductor technology with a market cap of approximately CN¥9.68 billion.

Operations: Yuanjie Semiconductor Technology generates revenue from its semiconductor technology operations.

Insider Ownership: 27.7%

Yuanjie Semiconductor Technology's earnings are forecast to grow significantly at 61.83% annually, surpassing the Chinese market average. Revenue is expected to increase by 42% per year, driven by strong market demand. However, profit margins have declined from 34.2% to 10.7%, partly due to large one-off items affecting financial results. The company recently completed a share buyback program worth CNY 49.97 million, indicating confidence in its future prospects despite high share price volatility and low forecasted return on equity (7.2%).

SHSE:688498 Earnings and Revenue Growth as at Jul 2024

Summing It All Up

Curious About Other Options?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com