Stock Analysis

October 2024's Top Insider Owned Growth Stocks

SZSE:300996
Source: Shutterstock

As global markets navigate the challenges of rising U.S. Treasury yields and cautious economic growth, investors are keenly watching for opportunities that can thrive in this environment. Despite these headwinds, growth stocks with high insider ownership often attract attention due to their potential for strong alignment between management and shareholder interests.

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%26.3%
Arctech Solar Holding (SHSE:688408)37.8%29.8%
Laopu Gold (SEHK:6181)36.4%33.2%
Seojin SystemLtd (KOSDAQ:A178320)30.7%49.1%
Medley (TSE:4480)34%30.4%
Findi (ASX:FND)35.8%64.8%
HANA Micron (KOSDAQ:A067310)18.3%105.8%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1510 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.

Suzhou Novosense Microelectronics (SHSE:688052)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Suzhou Novosense Microelectronics Co., Ltd. is a company engaged in the design and development of microelectronic products, with a market cap of approximately CN¥18.73 billion.

Operations: Revenue Segments (in millions of CN¥):

Insider Ownership: 25.1%

Earnings Growth Forecast: 116.8% p.a.

Suzhou Novosense Microelectronics is experiencing significant revenue growth, with forecasts suggesting a 31.2% annual increase, outpacing the broader Chinese market. Despite this, the company reported a net loss of CNY 265.25 million for the first half of 2024, doubling from last year. While earnings are expected to grow rapidly at 116.79% annually and profitability is anticipated within three years, insider trading activity has been minimal recently and share price volatility remains high.

SHSE:688052 Ownership Breakdown as at Oct 2024
SHSE:688052 Ownership Breakdown as at Oct 2024

Pansoft (SZSE:300996)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Pansoft Company Limited offers enterprise management information solutions and IT integrated services in China, with a market cap of CN¥4.05 billion.

Operations: Revenue Segments (in millions of CN¥):

Insider Ownership: 36.6%

Earnings Growth Forecast: 28.5% p.a.

Pansoft is poised for significant growth, with earnings projected to rise 28.5% annually, surpassing the Chinese market average. Despite a volatile share price recently, its P/E ratio of 39.2x is attractive compared to the industry average of 86.4x. Recent earnings reports show positive momentum; sales reached CNY 293.81 million for the first nine months of 2024, reversing last year's net loss into a CNY 14.93 million profit, reflecting robust revenue expansion and improved profitability metrics.

SZSE:300996 Earnings and Revenue Growth as at Oct 2024
SZSE:300996 Earnings and Revenue Growth as at Oct 2024

Union Tool (TSE:6278)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Union Tool Co. produces and sells cutting tools, linear motion products, and metal machining equipment both in Japan and internationally, with a market cap of ¥115.57 billion.

Operations: Revenue segments for Union Tool Co. are ¥19.84 billion from Japan, ¥15.05 billion from Asia, ¥2.17 billion from Europe, and ¥1.84 billion from North America.

Insider Ownership: 39.2%

Earnings Growth Forecast: 21.5% p.a.

Union Tool's earnings are forecast to grow significantly at 21.5% annually, outpacing the Japanese market average. The company's revenue is also projected to increase by 8.4% per year, though less than the desired high-growth threshold of 20%. While recent share price volatility may concern some investors, it trades at an attractive discount of 13.9% below its estimated fair value. Recent guidance suggests strong financial health with expected net sales of ¥30 billion and operating profit of ¥6.4 billion for fiscal year-end 2024.

TSE:6278 Earnings and Revenue Growth as at Oct 2024
TSE:6278 Earnings and Revenue Growth as at Oct 2024

Summing It All Up

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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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