Stock Analysis

November 2024's High Insider Ownership Growth Companies

OB:ATEA
Source: Shutterstock

In the wake of a "red sweep" in the U.S. elections, global markets have been buoyant, with major indices like the S&P 500 and Nasdaq Composite reaching record highs amid expectations of accelerated economic growth and favorable tax policies. As investors navigate these optimistic yet uncertain times, companies with high insider ownership often attract attention due to their alignment of interests between management and shareholders, potentially offering unique opportunities for growth amidst evolving market conditions.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Medley (TSE:4480)34%30.4%
Pharma Mar (BME:PHM)11.8%56.4%
Findi (ASX:FND)34.8%64.8%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
Alkami Technology (NasdaqGS:ALKT)11.2%98.6%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
Brightstar Resources (ASX:BTR)14.8%84.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1529 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

Krsnaa Diagnostics (NSEI:KRSNAA)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Krsnaa Diagnostics Limited offers diagnostic services in India and has a market cap of ₹30.34 billion.

Operations: The company generates revenue of ₹6.81 billion from its Radiology and Pathology Services segment in India.

Insider Ownership: 27.7%

Earnings Growth Forecast: 37.4% p.a.

Krsnaa Diagnostics demonstrates strong growth potential with forecasted revenue and earnings expected to outpace the Indian market significantly. Recent earnings reports show a robust increase in net income, reflecting effective business strategies. The company has secured key public-private partnership contracts, enhancing its service reach. Despite trading below estimated fair value and offering good relative value compared to peers, shareholders experienced dilution last year. Insider ownership remains high, supporting confidence in long-term growth prospects.

NSEI:KRSNAA Earnings and Revenue Growth as at Nov 2024
NSEI:KRSNAA Earnings and Revenue Growth as at Nov 2024

Atea (OB:ATEA)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Atea ASA offers IT infrastructure and related solutions to businesses and public sector organizations in the Nordic countries and Baltic regions, with a market cap of NOK 15.32 billion.

Operations: The company's revenue segments are comprised of NOK 8.28 billion from Norway, NOK 12.44 billion from Sweden, NOK 7.37 billion from Denmark, NOK 3.62 billion from Finland, and NOK 1.76 billion from the Baltics, with Group Shared Services contributing an additional NOK 9.20 billion.

Insider Ownership: 29.0%

Earnings Growth Forecast: 21.5% p.a.

Atea ASA shows promising growth potential, with forecasted revenue and earnings expected to outpace the Norwegian market. The company recently secured a significant four-year agreement with Tiera Oy, potentially doubling previous contract values. Despite trading below estimated fair value, Atea's dividend sustainability is questionable due to insufficient earnings coverage. The recent share buyback program reflects a commitment to enhancing shareholder value, while high insider ownership underscores confidence in its future growth trajectory.

OB:ATEA Ownership Breakdown as at Nov 2024
OB:ATEA Ownership Breakdown as at Nov 2024

Eternal Hospitality GroupLtd (TSE:3193)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Eternal Hospitality Group Co., Ltd. operates restaurants in Japan and has a market cap of ¥40.46 billion.

Operations: Eternal Hospitality Group Co., Ltd. generates revenue from its restaurant operations in Japan.

Insider Ownership: 35.6%

Earnings Growth Forecast: 14.2% p.a.

Eternal Hospitality Group Ltd. is trading at a significant discount to its estimated fair value, offering potential upside. Despite high share price volatility, the company forecasts earnings growth of 14.17% annually, outpacing the broader JP market's 9.1%. Revenue is expected to grow at 8.7% per year, exceeding market averages but not significantly high. Recent dividend increases and stable insider ownership indicate confidence in long-term growth prospects despite no substantial insider trading activity recently.

TSE:3193 Earnings and Revenue Growth as at Nov 2024
TSE:3193 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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