Stock Analysis

3 Growth Stocks Insiders Are Eager To Own

OM:STORY B
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In a week marked by busy earnings reports and economic data, global markets saw major indexes mostly lower, with growth stocks lagging behind value shares. Amid such volatility, identifying growth companies with high insider ownership can be particularly appealing as it often signals confidence from those closest to the business in its long-term potential.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)17.3%21.1%
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 1520 stocks from our Fast Growing Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Medicover (OM:MCOV B)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Medicover AB (publ) offers healthcare and diagnostic services in Poland, Sweden, and internationally, with a market cap of SEK26.27 billion.

Operations: The company's revenue is primarily derived from Healthcare Services, contributing €1.39 billion, and Diagnostic Services, which account for €631.90 million.

Insider Ownership: 11.1%

Earnings Growth Forecast: 41% p.a.

Medicover is trading significantly below its estimated fair value, indicating potential undervaluation. Despite recent insider selling, more shares have been bought than sold in the past quarter. The company forecasts substantial earnings growth of 41% annually over the next three years, outpacing the Swedish market's growth rate. However, recent financial results show a net loss for Q3 2024 despite increased sales of €527.8 million compared to last year’s €440.5 million.

OM:MCOV B Earnings and Revenue Growth as at Nov 2024
OM:MCOV B Earnings and Revenue Growth as at Nov 2024

Storytel (OM:STORY B)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Storytel AB (publ) offers streaming services for audiobooks and e-books, with a market cap of SEK5.04 billion.

Operations: The company's revenue is primarily derived from its Books segment, which accounts for SEK859.34 million.

Insider Ownership: 18.7%

Earnings Growth Forecast: 98.3% p.a.

Storytel's recent financial performance shows a turnaround with Q3 2024 net income of SEK 51.36 million, contrasting last year's loss. Despite substantial insider selling recently, the company is trading significantly below its estimated fair value and forecasts robust profit growth of 98.31% annually over three years, surpassing market averages. Revenue is projected to grow at 9.6% per year, boosted by strategic partnerships like the one with Wellhub across various international markets.

OM:STORY B Ownership Breakdown as at Nov 2024
OM:STORY B Ownership Breakdown as at Nov 2024

NSFOCUS Technologies Group (SZSE:300369)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: NSFOCUS Technologies Group Co., Ltd. offers Internet and application security services globally, with a market cap of CN¥7.19 billion.

Operations: The company generates revenue primarily from the Information Security Industry, amounting to CN¥1.75 billion.

Insider Ownership: 10.2%

Earnings Growth Forecast: 127.3% p.a.

NSFOCUS Technologies Group's recent earnings reveal an improved net loss of CNY 326.02 million for the nine months ending September 2024, compared to a larger loss last year. Despite being dropped from the FTSE All-World Index, the company is trading at a favorable value relative to peers and anticipates revenue growth of 18.1% annually, outpacing China's market average. Profitability is expected within three years, although share price volatility remains high recently.

SZSE:300369 Ownership Breakdown as at Nov 2024
SZSE:300369 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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