Stock Analysis

Insiders Back These 3 Prominent Growth Companies

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As global markets show signs of optimism with cooling inflation and robust bank earnings driving U.S. stocks higher, investors are keenly observing the shifting dynamics between value and growth shares. In this environment, companies with high insider ownership can signal confidence in their long-term potential, making them intriguing options for those seeking growth opportunities backed by those who know the business best.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Seojin SystemLtd (KOSDAQ:A178320)30.9%39.9%
Clinuvel Pharmaceuticals (ASX:CUV)10.4%26.2%
SKS Technologies Group (ASX:SKS)29.7%24.8%
Pharma Mar (BME:PHM)11.9%56.2%
Medley (TSE:4480)34%27.2%
On Holding (NYSE:ONON)19.1%29.7%
Fine M-TecLTD (KOSDAQ:A441270)17.2%131.1%
Elliptic Laboratories (OB:ELABS)26.8%121.1%
Fulin Precision (SZSE:300432)13.6%66.7%
Findi (ASX:FND)35.8%112.9%

Click here to see the full list of 1472 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

Techwing (KOSDAQ:A089030)

Simply Wall St Growth Rating: ★★★★★★

Overview: Techwing, Inc., along with its subsidiaries, is engaged in the development, manufacturing, sales, and servicing of semiconductor inspection equipment both in South Korea and globally, with a market cap of approximately ₩1.72 trillion.

Operations: Techwing, Inc. generates revenue through the creation, production, distribution, and maintenance of semiconductor inspection equipment in domestic and international markets.

Insider Ownership: 18.8%

Techwing has demonstrated remarkable growth, with earnings increasing by 347.1% over the past year and revenue expected to grow at 71.8% annually, significantly outpacing the KR market. Despite this, their debt coverage by operating cash flow remains a concern. Recent financial results show a turnaround from losses to profits, with third-quarter sales reaching KRW 46.72 billion and net income of KRW 14.60 million compared to previous losses, highlighting strong potential amidst high insider ownership stability.

KOSDAQ:A089030 Ownership Breakdown as at Jan 2025

Guangdong Guanghua Sci-Tech (SZSE:002741)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Guangdong Guanghua Sci-Tech Co., Ltd. is engaged in the production and sale of electronic chemicals, chemical reagents, and new energy materials in China, with a market cap of CN¥7.49 billion.

Operations: The company generates revenue primarily from its Chemical Industry segment, amounting to CN¥2.53 billion.

Insider Ownership: 38%

Guangdong Guanghua Sci-Tech is poised for significant growth, with earnings projected to increase by 122.17% annually and revenue expected to outpace the CN market at 31% per year. Despite recent volatility in share price, the company has transitioned from a net loss to a net income of CNY 6.78 million for the first nine months of 2024. A recent private placement raised approximately CNY 700 million, indicating strong institutional interest amidst high insider ownership stability.

SZSE:002741 Earnings and Revenue Growth as at Jan 2025

Grand Process Technology (TPEX:3131)

Simply Wall St Growth Rating: ★★★★★★

Overview: Grand Process Technology Corporation is a Taiwanese company specializing in the manufacturing and sale of semiconductor equipment, with a market cap of NT$41.19 billion.

Operations: The company generates revenue from various segments, including Equipment Manufacturing (NT$1.79 billion), Equipment Sales Agent Department (NT$912.46 million), Chemical Materials Manufacturing Department (NT$1.12 billion), and Software Sales Department (NT$62.60 million).

Insider Ownership: 12.5%

Grand Process Technology shows strong growth potential, with earnings and revenue expected to grow significantly faster than the Taiwan market. Recent earnings reports reveal a substantial increase in both sales and net income for the third quarter of 2024, indicating robust performance. However, the stock has experienced high volatility recently. Analysts agree on a potential price rise of 45.8%, reflecting optimism despite no significant insider trading activity over the past three months.

TPEX:3131 Ownership Breakdown as at Jan 2025

Key Takeaways

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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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