3 Growth Companies Insiders Are Betting On

Simply Wall St.
26 Dec 2024

In the current global market landscape, marked by cautious Federal Reserve commentary and broad-based declines in U.S. stocks, investors are increasingly seeking stability amidst uncertainty. With central banks around the world adjusting their monetary policies and economic data presenting a mixed picture, insider ownership can serve as a strong indicator of confidence in a company's growth potential.

Top 10 Growth Companies With High Insider Ownership

Name Insider Ownership Earnings Growth
Arctech Solar Holding (SHSE:688408) 37.9% 25.6%
Seojin SystemLtd (KOSDAQ:A178320) 30.9% 39.9%
People & Technology (KOSDAQ:A137400) 16.4% 37.3%
Laopu Gold (SEHK:6181) 36.4% 34.2%
Medley (TSE:4480) 34% 31.7%
Plenti Group (ASX:PLT) 12.8% 120.1%
Brightstar Resources (ASX:BTR) 16.2% 84.5%
Fulin Precision (SZSE:300432) 13.6% 66.7%
HANA Micron (KOSDAQ:A067310) 18.5% 110.9%
Findi (ASX:FND) 34.8% 112.9%

Click here to see the full list of 1511 stocks from our Fast Growing Companies With High Insider Ownership screener.

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

EQT

Simply Wall St Growth Rating: ★★★★☆☆

Overview: EQT AB (publ) is a global private equity firm focusing on private capital and real asset segments, with a market cap of approximately SEK357.47 billion.

Operations: The company's revenue is derived from its central operations (€37.20 million), real assets (€878.70 million), and private capital segments (€1.28 billion).

Insider Ownership: 12.2%

Earnings Growth Forecast: 33.3% p.a.

EQT AB is experiencing robust growth, with earnings forecasted to increase by 33.3% annually, outpacing the Swedish market's average. Despite trading slightly below its estimated fair value, recent insider activity shows significant selling over the past three months. The company is actively involved in strategic M&A discussions, including potential acquisitions and IPOs that could enhance its portfolio and market position. However, large one-off items have impacted financial results recently.

  • Click to explore a detailed breakdown of our findings in EQT's earnings growth report.
  • Insights from our recent valuation report point to the potential overvaluation of EQT shares in the market.
OM:EQT Earnings and Revenue Growth as at Dec 2024

Shenzhen New Industries Biomedical Engineering

Simply Wall St Growth Rating: ★★★★★☆

Overview: Shenzhen New Industries Biomedical Engineering Co., Ltd. is a bio-medical company that focuses on the research, development, production, and sale of clinical laboratory instruments and in vitro diagnostic reagents for hospitals both in China and internationally, with a market cap of CN¥55.87 billion.

Operations: The company generates revenue primarily from its in vitro diagnostic segment, totaling CN¥4.44 billion.

Insider Ownership: 21.8%

Earnings Growth Forecast: 21.7% p.a.

Shenzhen New Industries Biomedical Engineering's recent earnings report showed sales of CNY 3.41 billion, up from CNY 2.91 billion the previous year, with net income rising to CNY 1.38 billion. Despite an unstable dividend record, the company is trading below estimated fair value and is expected to grow revenue at 21.2% annually, surpassing market averages. Analysts agree on a potential stock price increase of over 20%, reflecting strong growth prospects despite slower profit growth compared to the broader market.

  • Take a closer look at Shenzhen New Industries Biomedical Engineering's potential here in our earnings growth report.
  • The analysis detailed in our Shenzhen New Industries Biomedical Engineering valuation report hints at an deflated share price compared to its estimated value.
SZSE:300832 Ownership Breakdown as at Dec 2024

SHIFT

Simply Wall St Growth Rating: ★★★★★☆

Overview: SHIFT Inc. offers software quality assurance and testing solutions in Japan, with a market cap of ¥311.05 billion.

Operations: The company generates revenue primarily from Software Testing Related Services, amounting to ¥71.34 billion, and Software Development Related Services, amounting to ¥35.01 billion.

Insider Ownership: 32.9%

Earnings Growth Forecast: 30.1% p.a.

SHIFT Inc. is expected to experience significant earnings growth of 30.1% annually over the next three years, outpacing the JP market's average. Despite a recent decline in profit margins and a highly volatile share price, SHIFT is trading at 12.8% below its estimated fair value. The company recently completed a share buyback program worth ¥999.61 million, aimed at enhancing corporate value and shareholder returns, indicating confidence in its future performance.

  • Unlock comprehensive insights into our analysis of SHIFT stock in this growth report.
  • The valuation report we've compiled suggests that SHIFT's current price could be inflated.
TSE:3697 Earnings and Revenue Growth as at Dec 2024

Turning Ideas Into Actions

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Searching for a Fresh Perspective?

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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.

Companies discussed in this article include OM:EQT SZSE:300832 and TSE:3697.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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