Stock Analysis

3 Growth Companies With High Insider Ownership Expecting Up To 98% Earnings Growth

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As global markets navigate the complexities of rising U.S. Treasury yields and tepid economic growth, investors are keenly observing how these factors impact stock performance, particularly in the U.S., where large-cap stocks have shown resilience compared to their small-cap counterparts. In this environment, growth companies with high insider ownership can be particularly appealing as they often signal strong alignment between management and shareholder interests, potentially offering robust earnings growth despite broader market challenges.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.1%
Archean Chemical Industries (NSEI:ACI)22.9%34%
Kirloskar Pneumatic (BSE:505283)30.3%26%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Medley (TSE:4480)34%30.4%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
Pharma Mar (BME:PHM)11.8%55.1%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
EHang Holdings (NasdaqGM:EH)32.8%81.4%

Click here to see the full list of 1513 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

Hana Materials (KOSDAQ:A166090)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hana Materials Inc. manufactures and sells silicon electrodes and rings in South Korea, with a market cap of ₩559.98 billion.

Operations: Revenue Segments (in millions of ₩): Silicon electrodes and rings are the primary revenue segments.

Insider Ownership: 12.6%

Earnings Growth Forecast: 49.3% p.a.

Hana Materials is trading significantly below its estimated fair value and is expected to experience robust earnings growth of 49.3% annually over the next three years, outpacing the broader KR market. Despite this growth potential, profit margins have decreased from last year, and the company carries a high level of debt. Recent buybacks indicate shareholder value efforts, with 109,720 shares repurchased for KRW 3.09 billion under a longstanding plan.

KOSDAQ:A166090 Earnings and Revenue Growth as at Oct 2024

Beisen Holding (SEHK:9669)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Beisen Holding Limited is an investment holding company that offers cloud-based human capital management solutions for enterprises in the People's Republic of China, with a market cap of HK$2.43 billion.

Operations: The company's revenue segment consists of providing cloud-based human capital management solutions and related professional services, amounting to CN¥854.74 million.

Insider Ownership: 32%

Earnings Growth Forecast: 98.7% p.a.

Beisen Holding's revenue is forecast to grow at 14.9% annually, outpacing the Hong Kong market average of 7.4%. The company is expected to become profitable within three years, indicating above-average market growth potential. Insider activity shows substantial buying over the past three months, suggesting confidence in future prospects. However, the forecasted Return on Equity remains low at 8.1% in three years, which could be a concern for long-term investors seeking high returns.

SEHK:9669 Ownership Breakdown as at Oct 2024

CURVES HOLDINGS (TSE:7085)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: CURVES HOLDINGS Co., Ltd. operates and manages women's fitness clubs under the Curves brand in Japan, with a market cap of ¥72.27 billion.

Operations: The company generates revenue of ¥35.47 billion from its women's fitness club operations under the Curves brand in Japan.

Insider Ownership: 17.5%

Earnings Growth Forecast: 10.9% p.a.

CURVES HOLDINGS is positioned for growth with forecasted earnings and revenue increases of 10.9% and 7.9% annually, respectively, outpacing the JP market averages. The company trades at a significant discount to its estimated fair value, enhancing its appeal as a value investment. Recent dividend guidance indicates stability with an increase to JPY 8 per share for the upcoming quarter. However, insider activity lacks substantial recent buying or selling data which could impact investor confidence.

TSE:7085 Ownership Breakdown as at Oct 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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