Stock Analysis

High Insider Ownership Drives Growth Stock Success November 2024

TSE:9166
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As global markets grapple with economic uncertainties, including mixed earnings reports and fluctuating labor market signals, growth stocks have shown varied performance. In this landscape, companies with high insider ownership can offer unique advantages, as insiders often align their interests with shareholders and demonstrate confidence in the company's long-term potential.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%34%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Laopu Gold (SEHK:6181)36.4%33%
Medley (TSE:4480)34%30.4%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Findi (ASX:FND)34.8%64.8%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1534 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.

Krishna Institute of Medical Sciences (NSEI:KIMS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Krishna Institute of Medical Sciences Limited operates under the KIMS Hospitals brand, offering medical and healthcare services in India, with a market cap of ₹219.30 billion.

Operations: The company generates revenue of ₹25.81 billion from its medical and healthcare services segment.

Insider Ownership: 34%

Earnings Growth Forecast: 21.5% p.a.

Krishna Institute of Medical Sciences is positioned for significant growth, with earnings expected to increase by 21.5% annually, outpacing the Indian market's 18.1%. Revenue is also forecast to grow robustly at 20.6% per year. However, the company carries a high level of debt and has a low projected return on equity of 18.3%. Recent developments include a 5:1 stock split and alterations in its capital structure following an AGM approval in August 2024.

NSEI:KIMS Earnings and Revenue Growth as at Nov 2024
NSEI:KIMS Earnings and Revenue Growth as at Nov 2024

Kuaishou Technology (SEHK:1024)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Kuaishou Technology is an investment holding company that offers live streaming, online marketing, and other services in the People's Republic of China, with a market capitalization of approximately HK$207.79 billion.

Operations: The company's revenue segments include Domestic operations generating CN¥117.32 billion and Overseas operations contributing CN¥3.57 billion.

Insider Ownership: 19.4%

Earnings Growth Forecast: 18.7% p.a.

Kuaishou Technology is poised for growth, with earnings projected to rise by 18.7% annually, surpassing the Hong Kong market's average. The company reported robust Q2 results with net income of CNY 3.98 billion, a significant increase from last year. Despite trading at 45.9% below its estimated fair value and offering good relative value compared to peers, it lacks substantial recent insider buying or selling activity over the past three months.

SEHK:1024 Earnings and Revenue Growth as at Nov 2024
SEHK:1024 Earnings and Revenue Growth as at Nov 2024

GENDA (TSE:9166)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: GENDA Inc. operates amusement arcades in Japan primarily under the GiGO brand, with a market cap of ¥201.78 billion.

Operations: The company generates revenue from its amusement arcade operations in Japan, primarily under the GiGO brand.

Insider Ownership: 19.3%

Earnings Growth Forecast: 20.9% p.a.

GENDA's revenue surged by 58.7% last year, with future earnings expected to grow significantly at 20.9% annually, outpacing the Japanese market average. Despite this growth trajectory, its return on equity is projected to remain low at 15.7%. The stock has experienced high volatility recently and shareholders faced dilution over the past year. Insider trading data for the past three months is unavailable, suggesting no significant insider buying or selling activity during this period.

TSE:9166 Earnings and Revenue Growth as at Nov 2024
TSE:9166 Earnings and Revenue Growth as at Nov 2024

Key Takeaways

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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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