Stock Analysis

3 Growth Companies With Significant Insider Ownership

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In the wake of recent U.S. elections and a favorable economic outlook, global markets have experienced significant rallies, with major indices like the S&P 500 and Nasdaq Composite reaching record highs. This optimistic environment has highlighted the potential of growth companies, particularly those with substantial insider ownership, as insiders' confidence in their firms can be a strong indicator of future performance.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.4%37.3%
Archean Chemical Industries (NSEI:ACI)22.9%42.6%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Laopu Gold (SEHK:6181)36.4%33.9%
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)16.2%84.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1528 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Logistea (OM:LOGI A)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Logistea AB (publ) operates in the real estate sector in Sweden and has a market capitalization of SEK7.28 billion.

Operations: The company generates revenue through its real estate operations in Sweden.

Insider Ownership: 14.0%

Earnings Growth Forecast: 34.7% p.a.

Logistea's revenue is forecast to grow significantly at 26.9% annually, outpacing the Swedish market. Earnings are also expected to rise by 34.7% per year, though recent profit margins have declined from 21.7% to 15.1%. While insider buying activity is not substantial recently, M2 Capital Management's acquisition of a significant stake highlights strong insider ownership influence, controlling roughly 22% of capital and nearly 25% of votes after acquiring shares for SEK 767 million.

OM:LOGI A Ownership Breakdown as at Nov 2024

Beauty Farm Medical and Health Industry (SEHK:2373)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Beauty Farm Medical and Health Industry Inc. operates in the health and beauty sector, providing medical and wellness services, with a market cap of HK$4.03 billion.

Operations: The company generates revenue from various segments, including CN¥851.81 million from Aesthetic Medical Services, CN¥125.69 million from Subhealth Medical Services, CN¥1.14 billion from Beauty and Wellness Services through Direct Stores, and CN¥131.48 million through Franchisee and Others.

Insider Ownership: 33.9%

Earnings Growth Forecast: 20.2% p.a.

Beauty Farm Medical and Health Industry is positioned for robust growth, with earnings expected to rise by 20.2% annually, surpassing the Hong Kong market's forecast. Revenue is also set to grow at 18.7% per year. Recent earnings showed an increase in sales to CNY 1.14 billion and net income of CNY 115.42 million for the half-year ended June 2024. Despite no recent substantial insider buying or selling, high insider ownership remains a key factor in its strategic decisions.

SEHK:2373 Earnings and Revenue Growth as at Nov 2024

Ningbo Deye Technology Group (SHSE:605117)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Ningbo Deye Technology Group Co., Ltd. produces and sells heat exchangers, inverters, and dehumidifiers across China, the UK, the US, Germany, India, and other international markets with a market cap of CN¥58.20 billion.

Operations: Revenue Segments (in millions of CN¥): Heat exchangers, inverters, and dehumidifiers are the primary sources of revenue for the company across various international markets.

Insider Ownership: 23.1%

Earnings Growth Forecast: 25.2% p.a.

Ningbo Deye Technology Group's revenue is forecast to grow at 28.4% annually, outpacing the Chinese market's average. Despite a past year of shareholder dilution, the company trades below its estimated fair value and offers good relative value compared to peers. Recent earnings for the nine months ended September 2024 showed sales of CNY 8.02 billion and net income of CNY 2.24 billion, reflecting strong financial performance without substantial insider trading activity recently reported.

SHSE:605117 Earnings and Revenue Growth 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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