Stock Analysis

3 Growth Companies That Insiders Are Betting On

OM:SECT B
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In a week marked by record highs across major U.S. indices and geopolitical developments influencing market sentiment, investors are keenly observing the movements of growth companies with significant insider ownership. As markets continue to navigate through domestic policy shifts and global economic uncertainties, stocks with high insider stakes can offer insights into potential confidence in long-term value creation.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.4%37.3%
Seojin SystemLtd (KOSDAQ:A178320)30.9%43.2%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
SKS Technologies Group (ASX:SKS)32.4%24.8%
Archean Chemical Industries (NSEI:ACI)22.9%41.3%
Laopu Gold (SEHK:6181)36.4%34.2%
Medley (TSE:4480)34%31.7%
Plenti Group (ASX:PLT)12.8%120.1%
HANA Micron (KOSDAQ:A067310)18.3%116.0%
Brightstar Resources (ASX:BTR)16.2%84.6%

Click here to see the full list of 1516 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Sectra (OM:SECT B)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sectra AB (publ) offers solutions in medical IT and cybersecurity across Sweden, the United Kingdom, the Netherlands, and other parts of Europe, with a market cap of SEK54.85 billion.

Operations: The company's revenue is primarily derived from Imaging IT Solutions, which accounts for SEK2.67 billion, followed by Secure Communications at SEK388.55 million and Business Innovation at SEK90.77 million.

Insider Ownership: 30.3%

Sectra's earnings grew by 17% last year, with future revenue growth forecast at 14.7% annually, outpacing the Swedish market. Although insider buying hasn't been substantial recently, Sectra's strategic contracts with healthcare providers like AZ Sint-Lucas Gent and UZ Leuven highlight its robust enterprise imaging solutions. These agreements enhance diagnostic efficiency and patient care while supporting Sectra's scalable business model. Recent financials show increased sales of SEK 736.75 million for Q1 2024, reflecting strong operational performance.

OM:SECT B Earnings and Revenue Growth as at Dec 2024
OM:SECT B Earnings and Revenue Growth as at Dec 2024

Kingdee International Software Group (SEHK:268)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kingdee International Software Group Company Limited is an investment holding company involved in the enterprise resource planning business, with a market cap of HK$31.11 billion.

Operations: The company generates revenue from its Cloud Service Business, which contributes CN¥4.86 billion, and its ERP Business and Others segment, which brings in CN¥1.13 billion.

Insider Ownership: 19.9%

Kingdee International Software Group is expected to achieve profitability within three years, with revenue projected to grow at 14.1% annually, outpacing the Hong Kong market. Despite recent shareholder dilution and low forecasted return on equity of 3.8%, the stock trades significantly below its estimated fair value, suggesting potential upside for investors focused on growth companies with substantial insider ownership.

SEHK:268 Earnings and Revenue Growth as at Dec 2024
SEHK:268 Earnings and Revenue Growth as at Dec 2024

T&S CommunicationsLtd (SZSE:300570)

Simply Wall St Growth Rating: ★★★★★★

Overview: T&S Communications Co., Ltd. develops, manufactures, and sells fiber optics communication products in the People's Republic of China, with a market cap of CN¥15.49 billion.

Operations: The company's revenue primarily comes from Optical Communication Components, amounting to CN¥1.17 billion.

Insider Ownership: 24.9%

T&S Communications Ltd. demonstrates strong growth potential, with earnings projected to increase by 44.7% annually, surpassing the CN market's growth rate. Revenue is also expected to grow significantly at 38.3% per year. Recent earnings reports show a substantial rise in sales and net income for the first nine months of 2024, indicating robust performance despite a volatile share price and an unsustainable dividend yield of 0.72%.

SZSE:300570 Ownership Breakdown as at Dec 2024
SZSE:300570 Ownership Breakdown as at Dec 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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