Stock Analysis

3 Elite Growth Stocks With High Insider Ownership

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In a week marked by cautious earnings reports and economic uncertainties, global markets experienced significant volatility, with major U.S. indices like the Nasdaq Composite and S&P MidCap 400 reaching record highs before retreating sharply. Amidst this backdrop, growth stocks have generally underperformed compared to value shares, highlighting the importance of insider ownership as a potential indicator of confidence in a company's long-term prospects. In such an environment, companies with high insider ownership can be particularly appealing as they often suggest alignment between management and shareholder interests, which may be crucial when navigating uncertain market conditions.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%34%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Laopu Gold (SEHK:6181)36.4%33.6%
Medley (TSE:4480)34%30.4%
Seojin SystemLtd (KOSDAQ:A178320)31.1%49.1%
Findi (ASX:FND)34.8%64.8%
Plenti Group (ASX:PLT)12.8%107.6%
Brightstar Resources (ASX:BTR)14.8%84.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1531 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Aether Industries (NSEI:AETHER)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Aether Industries Limited is engaged in the production and sale of advanced intermediates and specialty chemicals both in India and internationally, with a market cap of ₹114.15 billion.

Operations: The company's revenue segments comprise ₹1.46 billion from Contract Manufacturing, ₹4.10 billion from Large Scale Manufacturing, and ₹881.27 million from Contract Research and Manufacturing Services (CRAMS).

Insider Ownership: 31.1%

Revenue Growth Forecast: 35.2% p.a.

Aether Industries demonstrates strong growth potential with forecasted revenue and earnings growth rates of 35.2% and 44.8% per year, respectively, outpacing the Indian market averages. Despite a recent decline in profit margins to 12.4%, insider ownership remains significant, reflecting management's confidence in the company's trajectory. Recent earnings reports show increased sales but slightly decreased net income compared to last year, while a new manufacturing agreement with Seqens highlights strategic expansion efforts.

NSEI:AETHER Ownership Breakdown as at Nov 2024

Cubic Sensor and InstrumentLtd (SHSE:688665)

Simply Wall St Growth Rating: ★★★★★★

Overview: Cubic Sensor and Instrument Co., Ltd. specializes in manufacturing gas sensors and sensor solutions in China, with a market cap of CN¥3.26 billion.

Operations: Cubic Sensor and Instrument Co., Ltd. generates revenue from the production of gas sensors and sensor solutions within China.

Insider Ownership: 10.1%

Revenue Growth Forecast: 25.8% p.a.

Cubic Sensor and Instrument Ltd. shows promising growth potential with forecasted earnings growth of 42.9% annually, surpassing the Chinese market average of 26.3%. Despite a decrease in net income from CNY 101.28 million to CNY 61.56 million over nine months, revenue increased to CNY 540.44 million from CNY 451.91 million year-over-year, indicating robust sales performance amidst lower profit margins and high insider ownership supporting strategic direction confidence.

SHSE:688665 Earnings and Revenue Growth as at Nov 2024

Wondershare Technology Group (SZSE:300624)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Wondershare Technology Group Co., Ltd. develops application software products both in China and internationally, with a market cap of approximately CN¥11.90 billion.

Operations: Wondershare Technology Group Co., Ltd. generates revenue through its development of application software products across various international and domestic markets.

Insider Ownership: 15.2%

Revenue Growth Forecast: 16.2% p.a.

Wondershare Technology Group demonstrates growth potential with forecasted earnings growth of 74.5% annually, outpacing the Chinese market average. However, recent financials show a net loss of CNY 5.5 million for the nine months ending September 2024, compared to a net income of CNY 64.85 million last year, reflecting challenges in profitability despite stable revenue. The launch of SelfyzAI 3.0 and other product innovations highlight its commitment to technological advancement amidst high insider ownership supporting strategic initiatives.

SZSE:300624 Ownership Breakdown as at Nov 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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