Stock Analysis

Insiders Favor These 3 Leading Growth Stocks

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In a week marked by U.S. indexes approaching record highs and a notable decline in jobless claims, the global markets have shown resilience amid geopolitical uncertainties and economic shifts. As investors navigate these evolving landscapes, growth companies with high insider ownership often stand out due to their potential alignment of interests between management and shareholders, which can be particularly appealing in times of market optimism.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
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%
On Holding (NYSE:ONON)19.1%29.6%
Pharma Mar (BME:PHM)11.8%56.9%
Elliptic Laboratories (OB:ELABS)26.8%103.6%
Credo Technology Group Holding (NasdaqGS:CRDO)13.7%95%
Alkami Technology (NasdaqGS:ALKT)11%98.6%
Brightstar Resources (ASX:BTR)16.2%84.6%

Click here to see the full list of 1522 stocks from our Fast Growing Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

DPC Dash (SEHK:1405)

Simply Wall St Growth Rating: ★★★★★☆

Overview: DPC Dash Ltd, along with its subsidiaries, runs a chain of fast-food restaurants in the People's Republic of China and has a market cap of HK$9.53 billion.

Operations: The company's revenue primarily comes from its fast-food restaurant operations in the People's Republic of China, generating CN¥3.72 billion.

Insider Ownership: 38.1%

Earnings Growth Forecast: 104.8% p.a.

DPC Dash, Domino's Pizza's exclusive franchisee in China, recently opened its 1,000th store and reported double-digit revenue growth with first-ever positive net profit. Despite no substantial insider buying recently, the company is forecasted to achieve profitability within three years and is expected to grow revenue at 24.9% annually. Its expansion strategy includes opening 300-350 new stores annually through 2026. DPC Dash trades below estimated fair value but has experienced significant insider selling recently.

SEHK:1405 Ownership Breakdown as at Nov 2024

Guangdong Haomei New MaterialsLtd (SZSE:002988)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Guangdong Haomei New Materials Co., Ltd. is engaged in the research, development, manufacturing, and sale of aluminum profiles in China with a market cap of CN¥4.80 billion.

Operations: The company's revenue segments primarily consist of the research, development, manufacturing, and sale of aluminum profiles in China.

Insider Ownership: 23.2%

Earnings Growth Forecast: 27.3% p.a.

Guangdong Haomei New Materials reported strong earnings growth for the first nine months of 2024, with net income rising to CNY 171.81 million from CNY 124.26 million a year ago. The company completed a share buyback, enhancing shareholder value by repurchasing shares worth CNY 45 million. Despite past shareholder dilution, it trades at a favorable price-to-earnings ratio of 22.2x compared to the CN market average and forecasts significant profit growth exceeding market expectations over the next three years.

SZSE:002988 Earnings and Revenue Growth as at Nov 2024

Inner Mongolia Furui Medical Science (SZSE:300049)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Inner Mongolia Furui Medical Science Co., Ltd. operates in the medical industry and has a market capitalization of approximately CN¥9.84 billion.

Operations: Revenue segments for the company are not provided in the available text.

Insider Ownership: 17.3%

Earnings Growth Forecast: 47.1% p.a.

Inner Mongolia Furui Medical Science has demonstrated robust earnings growth, with net income increasing to CNY 102 million for the first nine months of 2024, up from CNY 73.16 million a year earlier. The company's revenue also grew significantly, reaching CNY 979.86 million from CNY 807 million in the same period last year. Despite a highly volatile share price recently, its earnings are forecast to grow substantially faster than the Chinese market average over the next three years.

SZSE:300049 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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