3 Insider-Backed Growth Stocks Poised For Success

As global markets navigate a mixed economic landscape, marked by fluctuating consumer confidence and shifts in major indices, investors are increasingly seeking stability and growth potential. In such an environment, companies with high insider ownership often stand out as promising candidates due to the alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership

Name	Insider Ownership	Earnings Growth
Seojin SystemLtd (KOSDAQ:A178320)	30.9%	39.9%
People & Technology (KOSDAQ:A137400)	16.4%	37.3%
SKS Technologies Group (ASX:SKS)	29.7%	24.8%
Propel Holdings (TSX:PRL)	23.8%	37.6%
Medley (TSE:4480)	34%	31.7%
Pharma Mar (BME:PHM)	11.8%	56.2%
Fine M-TecLTD (KOSDAQ:A441270)	17.2%	131.1%
Elliptic Laboratories (OB:ELABS)	26.8%	111.4%
Credo Technology Group Holding (NasdaqGS:CRDO)	13.3%	66.3%
HANA Micron (KOSDAQ:A067310)	18.5%	110.9%

Click here to see the full list of 1507 stocks from our Fast Growing Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Ratos (OM:RATO B)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Ratos AB (publ) is a private equity firm focusing on buyouts, turnarounds, add-on acquisitions, and middle market transactions, with a market cap of SEK10.61 billion.

Operations: The company's revenue segments are Consumer at SEK5.46 billion, Industry at SEK10.41 billion, and Construction & Services at SEK16.49 billion.

Insider Ownership: 19.4%

Earnings Growth Forecast: 23.9% p.a.

Ratos exhibits a blend of growth potential and insider confidence, trading at 31.7% below its estimated fair value with earnings projected to grow significantly at 23.9% annually, outpacing the Swedish market's 14.8%. Despite recent financial setbacks, including a third-quarter net loss of SEK 146 million, insiders have shown more buying than selling activity in the past three months, indicating trust in future prospects despite volatile revenue growth and an unstable dividend history.

• Unlock comprehensive insights into our analysis of Ratos stock in this growth report.
• The analysis detailed in our Ratos valuation report hints at an deflated share price compared to its estimated value.

Tongqinglou Catering (SHSE:605108)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Tongqinglou Catering Co., Ltd. operates in China, offering catering services with a market capitalization of CN¥6.41 billion.

Operations: Revenue Segments (in millions of CN¥):

Insider Ownership: 24.5%

Earnings Growth Forecast: 40.8% p.a.

Tongqinglou Catering demonstrates growth potential with its earnings forecasted to rise significantly at 40.8% annually, surpassing the Chinese market's average. Despite a recent decline in net income to CNY 83.4 million for the first nine months of 2024, the company trades at a substantial discount to its estimated fair value and offers good relative value compared to peers. However, its dividend yield is not well supported by free cash flows, and insider trading activity remains unclear over recent months.

• Click here and access our complete growth analysis report to understand the dynamics of Tongqinglou Catering.
• In light of our recent valuation report, it seems possible that Tongqinglou Catering is trading behind its estimated value.

Beijing Hotgen Biotech (SHSE:688068)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Beijing Hotgen Biotech Co., Ltd. focuses on the research, development, manufacture, and sale of in-vitro diagnostic products for medical and public safety inspection within the biomedicine sector, with a market cap of approximately CN¥5.36 billion.

Operations: The company's revenue primarily comes from its Medical Labs & Research segment, generating CN¥520.50 million.

Insider Ownership: 33%

Earnings Growth Forecast: 116.0% p.a.

Beijing Hotgen Biotech is set to enhance its growth trajectory with a forecasted annual earnings increase of 115.97%, though revenue growth at 18.7% per year lags behind the ideal threshold. The company has initiated a share buyback program worth up to CNY 100 million, aiming to bolster long-term development and shareholder value despite recent financial setbacks, including a net loss of CNY 40.64 million for the first nine months of 2024.

• Take a closer look at Beijing Hotgen Biotech's potential here in our earnings growth report.
• Our comprehensive valuation report raises the possibility that Beijing Hotgen Biotech is priced higher than what may be justified by its financials.

Where To Now?

• Get an in-depth perspective on all 1507 Fast Growing Companies With High Insider Ownership by using our screener here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

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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