Amid a busy earnings week, global markets have seen mixed results, with major indices like the Nasdaq Composite and S&P MidCap 400 experiencing record highs before pulling back. As growth stocks lag behind value shares due to cautious earnings reports from tech giants, investors are increasingly focusing on companies with strong insider ownership and robust earnings growth as potential opportunities.
Top 10 Growth Companies With High Insider Ownership
Overview: Betsson AB (publ) operates an online gaming business through its subsidiaries, focusing on the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and other international markets with a market cap of approximately SEK19.56 billion.
Operations: The company's revenue is primarily derived from its Casinos & Resorts segment, which generated €1.05 billion.
Insider Ownership: 10.8%
Earnings Growth Forecast: 16.8% p.a.
Betsson's revenue is forecast to grow at 8.3% annually, outpacing the Swedish market, while earnings are expected to increase by 16.8%, also surpassing market growth. Despite a lack of substantial insider buying recently, insiders have purchased more shares than sold in the past three months. Betsson trades at a significant discount to its estimated fair value and offers good relative value compared to peers. Recent financial results showed increased sales but slightly lower net income year-over-year.
Overview: LifeTech Scientific Corporation is an investment holding company that develops, manufactures, and trades interventional medical devices for cardiovascular and peripheral vascular diseases globally, with a market cap of approximately HK$7.83 billion.
Operations: The company's revenue segments consist of CN¥523.01 million from the Structural Heart Diseases Business, CN¥725.13 million from the Peripheral Vascular Diseases Business, and CN¥32.36 million from the Cardiac Pacing and Electrophysiology Business.
Insider Ownership: 16%
Earnings Growth Forecast: 29.5% p.a.
LifeTech Scientific's earnings are forecast to grow significantly at 29.5% annually, outpacing the Hong Kong market's growth rate. Revenue is also expected to increase by 21.5% per year, surpassing market expectations. Recent financial results showed sales of CNY 652.83 million and a net income decrease to CNY 205.56 million from the previous year, indicating challenges in profit margins and quality earnings due to large one-off items impacting results.
Overview: PARK24 Co., Ltd. operates and manages parking facilities both in Japan and internationally, with a market cap of ¥322.25 billion.
Operations: The company's revenue segments include the Mobility Business at ¥107.36 million, Parking Lot Business in Japan at ¥178.06 million, and Parking Lot Business Overseas at ¥79.23 million.
Insider Ownership: 10.5%
Earnings Growth Forecast: 16.3% p.a.
PARK24's earnings are projected to grow 16.3% annually, exceeding Japan's market average of 8.9%, while revenue is expected to rise by 5.7% per year. The company is trading at a significant discount below its estimated fair value and has a high debt level, which may pose financial risks. A recent strategic alliance with Uber Japan introduces an innovative rideshare service using Times CAR vehicles, potentially boosting future utilization and growth opportunities in the transport sector.
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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:BETS B SEHK:1302 and TSE:4666.
