Stock Analysis

3 Growth Companies With Insider Ownership Up To 39%

TWSE:3708
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In the wake of recent U.S. elections, global markets have seen a rally, with major benchmarks like the S&P 500 reaching record highs as investors anticipate favorable economic policies. Amidst this optimistic backdrop, identifying growth companies with substantial insider ownership can be particularly appealing to investors looking for alignment between company leadership and shareholder interests.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
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%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1529 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.

Di Dong Il (KOSE:A001530)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Di Dong Il Corporation operates in the textile and clothing industries both in South Korea and internationally, with a market cap of ₩743.84 billion.

Operations: The company generates revenue from several segments, including Aluminum (₩223.28 billion), Cosmetics (₩8.08 billion), Plant and Environment Sector (₩70.78 billion), Furniture Wholesale and Retail (₩21.83 billion), and Textile Material excluding Plant and Environment (₩354.53 billion).

Insider Ownership: 12%

Di Dong Il Corporation's recent earnings report shows a strong net income increase to KRW 5.51 billion for Q2, up from KRW 2.73 billion last year, with earnings per share doubling. Despite lower profit margins this year compared to last, the company is expected to achieve significant annual earnings growth of over 36%, outpacing the broader Korean market. Revenue growth is projected at 10.4% annually, slightly above market expectations, although insider trading activity remains minimal recently.

KOSE:A001530 Ownership Breakdown as at Nov 2024
KOSE:A001530 Ownership Breakdown as at Nov 2024

Lumax Auto Technologies (NSEI:LUMAXTECH)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Lumax Auto Technologies Limited, along with its subsidiaries, manufactures and sells automotive components in India with a market cap of ₹35.13 billion.

Operations: The company's revenue is primarily derived from the manufacturing and trading of automotive components, amounting to ₹29.46 billion.

Insider Ownership: 39.1%

Lumax Auto Technologies is poised for significant growth, with earnings expected to increase by 23.7% annually over the next three years, outpacing the Indian market. Despite a high debt level and an unstable dividend history, its price-to-earnings ratio of 24.9x suggests good value compared to the market average of 33.3x. Recent strategic moves include a proposed acquisition of Greenfuel Energy Solutions and new auditor appointments, indicating proactive corporate governance efforts.

NSEI:LUMAXTECH Earnings and Revenue Growth as at Nov 2024
NSEI:LUMAXTECH Earnings and Revenue Growth as at Nov 2024

Swancor Holding (TWSE:3708)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Swancor Holding Co., LTD. is involved in the manufacture and trading of chemical materials both in Taiwan and internationally, with a market cap of NT$10.49 billion.

Operations: Swancor Holding's revenue is derived from its chemical materials manufacturing and trading operations across Taiwan and international markets.

Insider Ownership: 10.7%

Swancor Holding is set for substantial growth, with earnings projected to rise by 79% annually, surpassing the Taiwan market's average. Despite a significant drop in profit margins from 18% to 2.5% and recent shareholder dilution, revenue is expected to grow at 26.6% per year. Recent earnings show sales increased to TWD 2.11 billion, though net income fell sharply from TWD 552.41 million to TWD 50.07 million year-over-year, highlighting profitability challenges amidst growth prospects.

TWSE:3708 Ownership Breakdown as at Nov 2024
TWSE:3708 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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