As global markets experience fluctuations with European political uncertainties and mixed economic signals, the Swedish stock market remains a point of interest for investors looking for growth opportunities. High insider ownership in Swedish growth companies can be a reassuring signal of confidence from those who know the companies best, aligning leadership interests with shareholder expectations in these turbulent times.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: Fortnox AB operates in providing financial and administrative software solutions to small and medium-sized businesses, accounting firms, and organizations, with a market capitalization of approximately SEK 39.23 billion.
Operations: The company generates its revenue primarily through five segments: Core Products (SEK 698 million), The Agency (SEK 327 million), Entrepreneurship (SEK 356 million), Money (SEK 232 million), and Marketplaces (SEK 150 million).
Insider Ownership: 21%
Fortnox has demonstrated robust growth, with earnings rising by 58.8% over the past year and forecasted to grow at 21.09% annually, outpacing the Swedish market's 14.1%. Despite not seeing substantial insider buying recently, more shares were bought than sold by insiders in the last three months. Additionally, Fortnox reported significant increases in Q1 2024 earnings with net income reaching SEK 149 million from SEK 106 million a year earlier, reflecting strong operational performance.
Overview: Humble Group AB operates in refining, developing, and distributing fast-moving consumer goods both in Sweden and internationally, with a market capitalization of approximately SEK 4.34 billion.
Operations: The company's revenue is primarily generated from four segments: Future Snacking at SEK 935 million, Sustainable Care at SEK 2.24 billion, Quality Nutrition at SEK 1.51 billion, and Nordic Distribution at SEK 2.62 billion.
Insider Ownership: 22.2%
Humble Group, trading at 49.8% below its estimated fair value, shows promise with insider activities indicating more buying than selling in recent months. Although shareholder dilution occurred last year, the company's revenue is expected to grow by 12% annually, outpacing the Swedish market's 1.9%. However, its forecasted Return on Equity remains low at 9.1%. Recent earnings reflect improvement: Q1 sales rose to SEK 1.84 billion from SEK 1.61 billion year-over-year, turning a previous net loss into a SEK 23 million profit.
Overview: Sectra AB (publ) specializes in medical IT and cybersecurity solutions across Sweden, the United Kingdom, the Netherlands, and other parts of Europe, with a market capitalization of SEK 48.13 billion.
Operations: The company generates revenue primarily through its Imaging IT Solutions and Secure Communications segments, which brought in SEK 2.55 billion and SEK 367.40 million respectively, along with a smaller contribution of SEK 89.90 million from Business Innovation.
Insider Ownership: 30.3%
Sectra demonstrates robust growth with a 14.7% forecasted annual revenue increase and a higher-than-market earnings growth at 19.3% per year. Despite lacking significant insider buying in the past three months, its Return on Equity is expected to reach an impressive 30.5%. Recent innovations, like the genomic diagnostics IT module developed with the University of Pennsylvania, highlight Sectra's commitment to advancing healthcare technology, potentially enhancing patient outcomes through precision medicine.
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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:FNOX OM:HUMBLE and OM:SECT B.
