Stock Analysis

3 Growth Companies With Insider Ownership Up To 25%

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In a week marked by busy earnings reports and mixed economic signals, global markets have shown varied performances, with major indices like the Nasdaq Composite and S&P MidCap 400 reaching record highs before retreating. Amidst these fluctuations, growth stocks lagged behind value shares, reflecting cautious sentiment from key technology companies' earnings. In such an environment, identifying growth companies with substantial insider ownership can be appealing to investors seeking alignment between management interests and shareholder value. This article will explore three growth companies where insiders hold up to 25% ownership, potentially offering insights into their commitment to long-term success.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)17.3%21.5%
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%

Click here to see the full list of 1537 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Pricol (NSEI:PRICOLLTD)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Pricol Limited, along with its subsidiaries, manufactures and sells instrument clusters and other automobile components to original equipment manufacturers and replacement markets both in India and internationally, with a market cap of ₹58.16 billion.

Operations: Revenue Segments (in millions of ₹): Instrument Clusters: 8,500; Sensors & Actuators: 3,200; Pumps & Mechanical Products: 4,700; Telematics & Connected Vehicles: 2,600.

Insider Ownership: 25.5%

Pricol Limited demonstrates potential as a growth company with strong insider ownership, driven by expected earnings growth of 24.6% annually over the next three years, outpacing the Indian market. Recent earnings show robust performance with significant year-over-year increases in sales and net income. The company's strategic focus on inorganic growth through acquisitions and its expansion in the four-wheeler segment contribute to its promising outlook, supported by a solid order book and ongoing product development initiatives.

NSEI:PRICOLLTD Earnings and Revenue Growth as at Nov 2024

Fawaz Abdulaziz Al Hokair (SASE:4240)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Fawaz Abdulaziz Al Hokair & Company operates as a franchise retailer of fashion products across several countries, including Saudi Arabia and the United States, with a market capitalization of SAR1.47 billion.

Operations: The company's revenue segments include Fashion Retail at SAR4.64 billion, F&B at SAR359.85 million, and Indoor Entertainment at SAR69.75 million.

Insider Ownership: 15.2%

Fawaz Abdulaziz Al Hokair & Company faces challenges with negative shareholders' equity and high debt levels, yet it trades at a good value relative to peers. Despite volatile share prices, earnings are forecast to grow significantly at 114.7% annually, surpassing market expectations for profitability within three years. The recent CEO appointment of Salim Fakhouri could bring strategic direction given his extensive regional experience in fashion retail across the Middle East and North Africa.

SASE:4240 Ownership Breakdown as at Nov 2024

Zylox-Tonbridge Medical Technology (SEHK:2190)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Zylox-Tonbridge Medical Technology Co., Ltd. is a medical device company that offers neuro- and peripheral-vascular interventional devices in the People's Republic of China and internationally, with a market cap of HK$3.48 billion.

Operations: The company generates revenue of CN¥663.61 million from the sale of interventional surgical devices for neurovascular and peripheral-vascular applications.

Insider Ownership: 18.8%

Zylox-Tonbridge Medical Technology is positioned for significant growth, with earnings expected to increase by 69.8% annually, outpacing the Hong Kong market. Revenue growth is also projected at 23.8% per year. The company recently became profitable and trades well below its estimated fair value, suggesting potential upside. A share buyback program aims to enhance net assets and earnings per share, reflecting confidence in future performance despite a forecasted low return on equity of 6.6%.

SEHK:2190 Ownership Breakdown 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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