Stock Analysis

3 Growth Companies With High Insider Ownership Expecting 21% Earnings Growth

SASE:4292
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In a week marked by mixed performances across major global indices, growth stocks have continued to capture investor attention, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite reaching record highs. As growth shares outperformed value stocks significantly, sectors like consumer discretionary and information technology saw notable gains amid ongoing economic developments such as job growth rebounds and anticipated Federal Reserve rate cuts. In this environment, companies that not only exhibit robust earnings potential but also have high insider ownership can offer unique insights into future performance expectations.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.4%37.3%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Archean Chemical Industries (NSEI:ACI)22.9%41.3%
SKS Technologies Group (ASX:SKS)32.4%24.8%
Laopu Gold (SEHK:6181)36.4%34.2%
Medley (TSE:4480)34%31.7%
Plenti Group (ASX:PLT)12.8%120.1%
HANA Micron (KOSDAQ:A067310)18.4%110.9%
Brightstar Resources (ASX:BTR)16.2%84.6%
Findi (ASX:FND)34.8%112.9%

Click here to see the full list of 1509 stocks from our Fast Growing Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

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 NOK15.95 billion.

Operations: The company's revenue segments are comprised of NOK8.28 billion from Norway, NOK12.44 billion from Sweden, NOK7.37 billion from Denmark, NOK3.62 billion from Finland, and NOK1.76 billion from the Baltics, along with Group Shared Services contributing NOK9.20 billion.

Insider Ownership: 29.0%

Earnings Growth Forecast: 18.9% p.a.

Atea's growth prospects are underscored by its forecasted earnings increase of 18.9% annually, outpacing the Norwegian market. Despite trading at a significant discount to its estimated fair value, Atea's dividend yield of 4.91% is not well covered by earnings, raising sustainability concerns. Recent share repurchase authorization highlights management's confidence in the company's valuation and future potential. Third-quarter results showed modest sales and net income increases year-over-year, reflecting steady operational performance amidst revenue challenges.

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

Ataa Educational (SASE:4292)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ataa Educational Company operates private and international schools for kindergarten through secondary education in Saudi Arabia, with a market cap of SAR3.23 billion.

Operations: The company's revenue is primarily derived from its Education segment, which accounts for SAR645.68 million, supplemented by the Training segment at SAR30.42 million and Recruitment at SAR2.55 million.

Insider Ownership: 18.5%

Earnings Growth Forecast: 21.8% p.a.

Ataa Educational's growth outlook is supported by a significant forecasted earnings increase of 21.8% annually, surpassing the South African market's average. Despite this, recent earnings results showed a slight decline in net income to SAR 63.37 million from SAR 67.79 million year-over-year, indicating potential profitability challenges. Revenue growth is expected at 4.8% per year, higher than the market average but still modest for aggressive growth investors seeking high insider ownership benefits.

SASE:4292 Ownership Breakdown as at Dec 2024
SASE:4292 Ownership Breakdown as at Dec 2024

Quanta Computer (TWSE:2382)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Quanta Computer Inc. is a global manufacturer and seller of notebook computers, with a market capitalization of NT$1.14 trillion.

Operations: The company's revenue from the Electronics Sector amounts to NT$2.78 billion.

Insider Ownership: 13.7%

Earnings Growth Forecast: 19.7% p.a.

Quanta Computer's robust growth trajectory is underscored by a 41% increase in earnings over the past year, with revenue forecasted to grow at 36.9% annually, outpacing the Taiwan market. Despite trading at a significant discount to its estimated fair value and being valued well against peers, its dividend yield of 3.04% isn't fully supported by free cash flows. Recent quarterly results show sales reaching TWD 424.55 billion, reflecting strong performance momentum amid high insider ownership levels.

TWSE:2382 Ownership Breakdown as at Dec 2024
TWSE:2382 Ownership Breakdown as at Dec 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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