Stock Analysis

Spotlight On 3 Growth Companies With Strong Insider Confidence

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As global markets navigate the impact of rising U.S. Treasury yields, growth stocks have demonstrated resilience, with the tech-heavy Nasdaq Composite Index showing slight gains amidst broader market fluctuations. In this environment, companies with high insider ownership can be particularly appealing as they often signal strong confidence from those who know the business best, highlighting potential opportunities for investors seeking growth in uncertain times.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)17.3%21.1%
Arctech Solar Holding (SHSE:688408)37.8%25.3%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Medley (TSE:4480)34%30.4%
Findi (ASX:FND)35.8%64.8%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1527 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

YG Entertainment (KOSDAQ:A122870)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: YG Entertainment Inc. is an entertainment company operating in South Korea, Japan, and internationally with a market cap of ₩713.13 billion.

Operations: The company generates revenue of ₩493.91 million from its entertainment segment.

Insider Ownership: 23.2%

Revenue Growth Forecast: 17.6% p.a.

YG Entertainment is poised for significant earnings growth, forecast at 65.4% annually, outpacing Korea's market average of 30.3%. Despite this, recent financial results reveal challenges with a net loss of KRW 1,924.89 million in Q2 compared to a substantial profit the previous year. Revenue growth is expected at 17.6%, slightly below the high-growth benchmark but above market averages. Analysts anticipate a stock price rise of 24.5%, although return on equity remains modest at 10.4%.

KOSDAQ:A122870 Earnings and Revenue Growth as at Nov 2024

Serko (NZSE:SKO)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Serko Limited is a Software-as-a-Service company offering online travel booking software and expense management services across New Zealand, Australia, North America, Europe, and other international markets with a market cap of NZ$424.40 million.

Operations: The company's revenue primarily comes from the provision of software solutions, totaling NZ$74.45 million.

Insider Ownership: 31.6%

Revenue Growth Forecast: 22.4% p.a.

Serko Limited shows promising growth prospects with revenue expected to increase by 22.4% annually, surpassing the New Zealand market average of 4.4%. Recent earnings reported sales of NZ$41.46 million, up from NZ$35.78 million, and a reduced net loss of NZ$5.11 million compared to NZ$7.17 million previously. Despite high share price volatility and low forecasted return on equity at 14%, Serko aims for profitability within three years, indicating robust growth potential amidst insider ownership stability.

NZSE:SKO Earnings and Revenue Growth as at Nov 2024

PharmaBlock Sciences (Nanjing) (SZSE:300725)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: PharmaBlock Sciences (Nanjing), Inc. offers chemistry products and services for pharmaceutical research, development, and commercial production, with a market cap of CN¥7.17 billion.

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

Insider Ownership: 25%

Revenue Growth Forecast: 16.4% p.a.

PharmaBlock Sciences (Nanjing) is poised for significant earnings growth at 28.55% annually, outpacing the Chinese market's 25%, despite a recent decline in sales to CNY 1.13 billion and net income to CNY 131.79 million for the nine months ended September 2024. The company faces challenges with volatile share prices and low projected return on equity of 9.1%. However, its earnings growth potential remains strong amid stable insider ownership trends over the past three months.

SZSE:300725 Earnings and Revenue Growth 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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