Stock Analysis

3 Growth Stocks With High Insider Ownership Growing Earnings At 18%

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Amidst global market fluctuations driven by policy uncertainties and economic data releases, investors are navigating a landscape marked by sector-specific gains and losses. As the financial world grapples with these shifts, identifying growth stocks with high insider ownership can offer insights into companies potentially poised for robust performance. In this context, understanding the alignment between company insiders and shareholders becomes crucial as it may signal confidence in a company's future prospects amidst evolving market conditions.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%43%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
On Holding (NYSE:ONON)19.1%29.7%
Medley (TSE:4480)34%31.7%
Pharma Mar (BME:PHM)11.8%56.4%
EHang Holdings (NasdaqGM:EH)32.8%84.9%
Credo Technology Group Holding (NasdaqGS:CRDO)13.8%95%
Alkami Technology (NasdaqGS:ALKT)11%98.6%
Elliptic Laboratories (OB:ELABS)26.8%103.6%
Plenti Group (ASX:PLT)12.8%107.6%

Click here to see the full list of 1533 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

Guangdong Shenling Environmental Systems (SZSE:301018)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Shenling Environmental Systems Co., Ltd. operates in the environmental systems industry and has a market capitalization of approximately CN¥6.24 billion.

Operations: I'm unable to provide a summary of the company's revenue segments as the specific details were not included in the text provided. Please ensure that all relevant information is available for an accurate summary.

Insider Ownership: 38.7%

Earnings Growth Forecast: 40.6% p.a.

Guangdong Shenling Environmental Systems demonstrates high growth potential with expected annual earnings growth of 40.6%, surpassing the broader Chinese market's 26%. Despite a forecasted revenue increase of 23.4% annually, profit margins have declined from last year's 7.1% to 3.8%. Recent earnings show sales rising to CNY 1,976.99 million, but net income fell slightly to CNY 142.87 million, highlighting challenges in sustaining profitability amidst rapid expansion efforts and recent business scope amendments.

SZSE:301018 Ownership Breakdown as at Nov 2024

Relo Group (TSE:8876)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Relo Group, Inc. provides property management services in Japan and has a market cap of ¥250.73 billion.

Operations: The company's revenue is primarily derived from its Relocation Business at ¥97.34 billion, followed by the Welfare Program at ¥26.52 billion and the Tourism Business at ¥15.17 billion.

Insider Ownership: 28.1%

Earnings Growth Forecast: 18.8% p.a.

Relo Group is positioned for growth with a forecasted annual earnings increase of 18.82%, outpacing the Japanese market's average. Revenue is expected to rise by 6.1% annually, exceeding the market's 4.1% growth rate, though it remains below high-growth thresholds. The company recently completed a significant share buyback totaling ¥5,499.88 million, enhancing shareholder value while trading at a discount of 30.7% to its estimated fair value despite an unsustainable dividend yield of 2.24%.

TSE:8876 Ownership Breakdown as at Nov 2024

Micro-Star International (TWSE:2377)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Micro-Star International Co., Ltd. manufactures and sells motherboards, interface cards, notebook computers, and other electronic products across Asia, Europe, the United States, and internationally with a market capitalization of approximately NT$145.74 billion.

Operations: The company generates revenue primarily from its Computer and Peripherals Segment, which amounts to NT$195.51 billion.

Insider Ownership: 20.5%

Earnings Growth Forecast: 26.2% p.a.

Micro-Star International is forecasted to achieve significant earnings growth of 26.2% annually, surpassing the Taiwan market's average. Despite slower revenue growth at 9.3%, its high insider ownership aligns with strong internal confidence in strategic initiatives like AI server expansion using NVIDIA MGX architecture and Intel Xeon processors, enhancing its position in high-performance computing markets. However, recent financials show declining net income despite increased sales, indicating challenges in profit margins amidst competitive pressures.

TWSE:2377 Ownership Breakdown 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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