Stock Analysis

3 Prominent Growth Stocks With Insider Ownership Up To 29%

SHSE:603232
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As global markets experience broad-based gains and U.S. indexes approach record highs, investor sentiment is buoyed by positive economic indicators such as falling jobless claims and rising home sales. Amid this backdrop of cautious optimism, growth companies with high insider ownership can be particularly appealing due to the alignment of interests between company insiders and shareholders, suggesting confidence in the company's future prospects.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
SKS Technologies Group (ASX:SKS)32.4%24.8%
Pharma Mar (BME:PHM)11.8%56.9%
Medley (TSE:4480)34%31.7%
Findi (ASX:FND)34.8%71.5%
Elliptic Laboratories (OB:ELABS)26.8%103.6%
Plenti Group (ASX:PLT)12.8%120.1%
EHang Holdings (NasdaqGM:EH)32.8%81.5%
Credo Technology Group Holding (NasdaqGS:CRDO)13.7%95%
Alkami Technology (NasdaqGS:ALKT)11%98.6%
Brightstar Resources (ASX:BTR)16.2%84.6%

Click here to see the full list of 1520 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.

KCTech (KOSE:A281820)

Simply Wall St Growth Rating: ★★★★★☆

Overview: KCTech Co., Ltd. is a South Korean company that manufactures and distributes semiconductor systems, display systems, and electronic materials, with a market cap of ₩668.61 billion.

Operations: The company's revenue segments include semiconductor systems, display systems, and electronic materials.

Insider Ownership: 20%

KCTech's growth prospects are underscored by a forecasted earnings increase of 31% annually, outpacing the KR market. Revenue is also expected to grow at 20.9% per year, surpassing market averages. Recent buyback announcements aim to enhance shareholder value and stabilize stock prices, with up to KRW 10 billion allocated for repurchases. Despite low return on equity projections (12.3%), analysts anticipate a potential stock price rise of 45.2%.

KOSE:A281820 Earnings and Revenue Growth as at Nov 2024
KOSE:A281820 Earnings and Revenue Growth as at Nov 2024

Storskogen Group (OM:STOR B)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Storskogen Group AB (publ) owns and develops small and medium-sized businesses in the services, trade, and industrial sectors, with a market cap of SEK16.78 billion.

Operations: The company's revenue segments are comprised of SEK9.63 billion from Trade, SEK14.43 billion from Industry, and SEK10.59 billion from Services.

Insider Ownership: 19.5%

Storskogen Group's growth potential is highlighted by a forecasted annual earnings increase of over 100%, despite slower revenue growth at 1.4% per year. Recent financial activities include completing a SEK 1.25 billion fixed-income offering and a partial tender offer for bonds, reflecting strategic debt management. While trading significantly below estimated fair value, the company's interest payments are not well covered by earnings, indicating financial challenges amidst its transition to profitability within three years.

OM:STOR B Ownership Breakdown as at Nov 2024
OM:STOR B Ownership Breakdown as at Nov 2024

Koal Software (SHSE:603232)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Koal Software Co., Ltd. develops public key infrastructure platforms in China and has a market cap of CN¥3.38 billion.

Operations: Koal Software generates its revenue from developing public key infrastructure platforms in China.

Insider Ownership: 30%

Koal Software's earnings are forecast to grow significantly at 45.6% annually, outpacing the CN market, with revenue growth expected at 19.5% per year. Despite a net loss of CNY 38.04 million for the first nine months of 2024, insider ownership remains high without substantial recent trading activity. The company's price-to-earnings ratio is slightly below industry average, but one-off items impact its financial results and return on equity is projected to remain low at 7.6%.

SHSE:603232 Ownership Breakdown as at Nov 2024
SHSE:603232 Ownership Breakdown 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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