Stock Analysis

3 Growth Stocks With High Insider Ownership To Watch

SHSE:688032
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In a week marked by a flurry of earnings reports and economic data, global markets experienced notable volatility, with major indices such as the Nasdaq Composite and S&P MidCap 400 Index reaching record highs before retreating sharply. Amidst this backdrop of cautious optimism and uncertainty, growth stocks have generally lagged behind their value counterparts due to mixed corporate earnings results. In such a climate, companies with high insider ownership often attract attention as potential investment opportunities because insiders' significant stakes can align their interests closely with shareholders', potentially driving long-term growth strategies despite short-term market fluctuations.

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%33.6%
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)14.8%84.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1531 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.

Hoymiles Power Electronics (SHSE:688032)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Hoymiles Power Electronics Inc. manufactures and sells module level power electronics solutions in China and internationally, with a market cap of CN¥17.29 billion.

Operations: Hoymiles Power Electronics Inc. generates revenue through the production and distribution of module level power electronics solutions both domestically and globally.

Insider Ownership: 11.2%

Earnings Growth Forecast: 46.6% p.a.

Hoymiles Power Electronics shows potential as a growth company with high insider ownership. Despite recent earnings declines, with revenue at CNY 1.27 billion and net income dropping to CNY 245.61 million for the first nine months of 2024, forecasts indicate strong annual earnings growth of 46.6%, outpacing the Chinese market's average. However, profit margins have decreased from last year, and return on equity is expected to remain modest at 13% in three years.

SHSE:688032 Ownership Breakdown as at Nov 2024
SHSE:688032 Ownership Breakdown as at Nov 2024

Sansec Technology (SHSE:688489)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Sansec Technology Co., Ltd. focuses on the research, development, and production of commercial cryptographic products and solutions for internet information security in China, with a market cap of CN¥4.32 billion.

Operations: Sansec Technology Co., Ltd. generates revenue through its commercial cryptographic products and solutions aimed at enhancing internet information security within China.

Insider Ownership: 29.9%

Earnings Growth Forecast: 44.5% p.a.

Sansec Technology demonstrates potential for growth, with revenue forecasted to increase by 26.1% annually, surpassing the Chinese market's average. Despite a recent decline in net income to CNY 14.16 million for the first nine months of 2024, earnings are expected to grow significantly at 44.5% per year. However, profit margins have dropped from last year's levels due to large one-off items affecting results, and return on equity is projected to be low at 7.2%.

SHSE:688489 Ownership Breakdown as at Nov 2024
SHSE:688489 Ownership Breakdown as at Nov 2024

IG Port (TSE:3791)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: IG Port, Inc. is an animation production company operating in Japan and internationally, with a market cap of ¥38.45 billion.

Operations: The company's revenue segments include animation production, content management, and publishing.

Insider Ownership: 28.7%

Earnings Growth Forecast: 23% p.a.

IG Port is experiencing significant earnings growth, projected at 23% annually over the next three years, outpacing the Japanese market average. Despite a low forecasted return on equity of 17.9%, its revenue growth of 9% per year exceeds the market rate. The company was recently added to the S&P Global BMI Index, potentially increasing its visibility among investors. However, its share price has been highly volatile in recent months.

TSE:3791 Earnings and Revenue Growth as at Nov 2024
TSE:3791 Earnings and Revenue Growth as at Nov 2024

Where To Now?

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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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