Stock Analysis

3 Growth Companies Insiders Are Betting On

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In the wake of a significant rally in U.S. stocks, fueled by expectations of economic growth and favorable tax policies following the recent election, investors are closely watching how these developments might influence corporate performance. As markets reach new highs, identifying growth companies with substantial insider ownership can offer insights into where those closest to the business see potential value and opportunity amidst evolving economic conditions.

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.

We'll examine a selection from our screener results.

BioArctic (OM:BIOA B)

Simply Wall St Growth Rating: ★★★★★★

Overview: BioArctic AB (publ) is a Swedish company that develops biological drugs for central nervous system disorders, with a market cap of SEK13.38 billion.

Operations: The company's revenue segment includes SEK299.35 million from biotechnology.

Insider Ownership: 34%

BioArctic's high insider ownership, with major stakeholders controlling 84% of voting rights, aligns with its promising growth trajectory. Recent presentations highlighted their BrainTransporter platform's potential to revolutionize drug delivery across the blood-brain barrier. Analysts forecast BioArctic's revenue to grow by 42.4% annually, significantly outpacing the Swedish market. Despite past losses, profitability is expected within three years. The stock trades at a significant discount to fair value estimates, suggesting potential upside if forecasts materialize.

OM:BIOA B Earnings and Revenue Growth as at Nov 2024

Jiangxi Rimag Group (SEHK:2522)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jiangxi Rimag Group Co., Ltd. operates medical imaging centers in China and has a market cap of HK$15.80 billion.

Operations: The company's revenue primarily comes from its Medical Labs & Research segment, generating CN¥812.85 million.

Insider Ownership: 24.3%

Jiangxi Rimag Group's insider ownership supports its strong growth prospects, with earnings projected to grow significantly at 71.8% annually, outpacing the Hong Kong market. Despite recent leadership changes and a decline in profit margins from 2.6% to 0.6%, revenue is expected to increase by 30% per year, surpassing market averages. The stock trades slightly below fair value estimates, offering potential if growth forecasts are realized despite current low return on equity projections.

SEHK:2522 Earnings and Revenue Growth as at Nov 2024

Fixstars (TSE:3687)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Fixstars Corporation is a software company that operates both in Japan and internationally, with a market cap of ¥50.32 billion.

Operations: Fixstars Corporation generates revenue through its software operations both domestically and internationally.

Insider Ownership: 25.3%

Fixstars demonstrates strong growth potential with earnings expected to increase by 20.5% annually, significantly outpacing the Japanese market's average. Despite a highly volatile share price recently, Fixstars' revenue is projected to grow at 14.7% per year, faster than the market's 4.2%. The absence of recent insider trading activity suggests stability in insider sentiment. A special ¥5 dividend was announced for November 7th, reflecting confidence in cash flow management amidst growth expectations.

TSE:3687 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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