Stock Analysis

3 Growth Companies With High Insider Ownership Expecting Up To 62% Earnings Growth

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As global markets edge closer to record highs, buoyed by the anticipation of interest rate cuts from the Federal Reserve, investors are increasingly looking for growth opportunities. In this environment, companies with high insider ownership and strong earnings potential stand out as particularly compelling investments.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)11.9%21.2%
Atlas Energy Solutions (NYSE:AESI)29.1%42.7%
Gaming Innovation Group (OB:GIG)26.7%37.4%
On Holding (NYSE:ONON)28.4%24.4%
Global Tax Free (KOSDAQ:A204620)21.4%78.5%
Credo Technology Group Holding (NasdaqGS:CRDO)14.3%60.9%
Plenti Group (ASX:PLT)12.8%106.4%
Vow (OB:VOW)31.7%97.7%
UTI (KOSDAQ:A179900)33.1%122.7%
EHang Holdings (NasdaqGM:EH)32.8%74.9%

Click here to see the full list of 1491 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.

Palm Hills DevelopmentsE (CASE:PHDC)

Simply Wall St Growth Rating: ★★★★★★

Overview: Palm Hills Developments S.A.E. is an Egyptian company that develops integrated residential, commercial real estate, and resort projects with a market cap of EGP15.77 billion.

Operations: Palm Hills Developments S.A.E. generates revenue primarily from real estate investment, amounting to EGP20.16 billion.

Insider Ownership: 12%

Earnings Growth Forecast: 31.9% p.a.

Palm Hills Developments shows strong growth potential with forecasted earnings growth of 31.9% annually, outpacing the EG market's 15%. Revenue is also expected to grow at 27% per year, exceeding the market average. The company has a high Return on Equity forecast of 31.1% in three years and trades at a favorable P/E ratio of 6.8x compared to the market's 8.7x, indicating good relative value despite no recent insider trading activity reported.

CASE:PHDC Ownership Breakdown as at Aug 2024

Herfy Food Services (SASE:6002)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Herfy Food Services Company, with a market cap of SAR1.72 billion, establishes, operates, and franchises restaurants in the Kingdom of Saudi Arabia and internationally.

Operations: Herfy Food Services generates revenue from its meat factory (SAR199.46 million), bakeries and other segments (SAR198.45 million), and restaurants and catering services (SAR923.62 million).

Insider Ownership: 15.3%

Earnings Growth Forecast: 62.9% p.a.

Herfy Food Services, with significant insider ownership, reported Q2 2024 sales of SAR 301.12 million but faced a net loss of SAR 23.7 million. Despite this, the company is expected to become profitable within three years and has forecasted annual earnings growth of 62.93%. Trading at good value compared to peers, its revenue is projected to grow at 6.2% annually, faster than the SA market's average but slower than high-growth benchmarks.

SASE:6002 Earnings and Revenue Growth as at Aug 2024

Jinlei Technology (SZSE:300443)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jinlei Technology Co., Ltd. develops, produces, and sells wind turbine spindles as well as various castings and forgings in China and internationally, with a market cap of CN¥5.30 billion.

Operations: The company's revenue segments include wind turbine spindles and various castings and forgings, serving both domestic and international markets.

Insider Ownership: 34%

Earnings Growth Forecast: 26.5% p.a.

Jinlei Technology, with significant insider ownership, is forecasted to achieve annual earnings growth of 26.53% and revenue growth of 28%, outpacing the CN market. Despite a low Return on Equity forecast (9.2%) and a dividend yield of 3.24% not well covered by free cash flows, analysts expect its stock price to rise by 38.5%. Recent buybacks totaling CNY 100.16 million demonstrate strong management confidence in the company's future prospects.

SZSE:300443 Earnings and Revenue Growth as at Aug 2024

Summing It All Up

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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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