Stock Analysis

3 Growth Companies To Watch With Insider Ownership As High As 27%

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As global markets rally in response to the Federal Reserve's recent rate cut, investors are increasingly optimistic about the economic outlook. Amid this positive sentiment, stocks with high insider ownership can offer unique advantages, as insiders' significant stakes often align their interests with those of shareholders and may indicate confidence in the company's growth prospects. In this favorable market environment, identifying companies where insiders hold substantial shares can be particularly compelling. Here are three growth companies to watch that boast insider ownership as high as 27%.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Atlas Energy Solutions (NYSE:AESI)29.1%42.1%
Yggdrazil Group (SET:YGG)12%85.5%
Laopu Gold (SEHK:6181)36.4%34.7%
KebNi (OM:KEBNI B)37.8%86.1%
Credo Technology Group Holding (NasdaqGS:CRDO)14.3%95%
Plenti Group (ASX:PLT)12.8%106.4%
HANA Micron (KOSDAQ:A067310)18.3%100.3%
EHang Holdings (NasdaqGM:EH)32.8%81.5%

Click here to see the full list of 1520 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

Vista Energy. de (BMV:VISTA A)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Vista Energy, S.A.B. de C.V., through its subsidiaries, engages in the exploration and production of oil and gas in Latin America and has a market cap of MX$87.52 billion.

Operations: The company's revenue from exploration and production of crude oil, natural gas, and LPG amounts to $1.33 billion.

Insider Ownership: 12.5%

Vista Energy, S.A.B. de C.V. shows strong growth potential with revenue forecasted to grow at 22.7% per year, outpacing the market's 7.1%. Earnings are projected to increase by 18.64% annually, though not significantly high, and have grown substantially in the past five years at 64.2%. Despite its high debt levels and volatile share price, Vista Energy is trading at a significant discount to its estimated fair value and has initiated a $50 million share buyback program for fiscal year 2025.

BMV:VISTA A Earnings and Revenue Growth as at Sep 2024

Wuhan Guide Infrared (SZSE:002414)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Wuhan Guide Infrared Co., Ltd. specializes in the research, development, production, and sale of infrared thermal imaging technology in Asia and has a market cap of CN¥26.05 billion.

Operations: The company's revenue segments include CN¥2.45 billion from Other Electronic Equipment Manufacturing, CN¥33.25 million from the Technical Service Industry, and CN¥7.68 million from the Leasing Industry.

Insider Ownership: 27.2%

Wuhan Guide Infrared Co., Ltd. is forecast to achieve substantial revenue growth of 23.3% annually, surpassing the Chinese market's 13.1%. Earnings are expected to grow at a robust 63.47% per year, with profitability anticipated within three years, which is above average market growth. Recent earnings showed sales of CNY 1.11 billion and revenue of CNY 1.15 billion for the first half of 2024, though net income dropped significantly to CNY 17.97 million from CNY 207.38 million a year ago.

SZSE:002414 Earnings and Revenue Growth as at Sep 2024

Songcheng Performance DevelopmentLtd (SZSE:300144)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Songcheng Performance Development Co., Ltd operates in the performing arts industry in China and has a market cap of CN¥19.65 billion.

Operations: The company's revenue segments include ticket sales, which generated CN¥1.50 billion, and cultural and creative products, contributing CN¥0.75 billion.

Insider Ownership: 14.5%

Songcheng Performance Development Ltd. is projected to grow earnings at 47.72% per year, outpacing the Chinese market's 23%. Despite revenue growth of 13.3% annually being slower than desired, recent earnings showed a strong performance with net income rising to CNY 550.36 million from CNY 302.81 million a year ago. However, profit margins have declined from last year's levels and the dividend coverage remains weak, raising sustainability concerns despite trading below fair value estimates by 46.4%.

SZSE:300144 Earnings and Revenue Growth as at Sep 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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