In the current global market landscape, uncertainty surrounding policy changes and fluctuating sector performance have led to a mixed response from investors, with notable movements in sectors like financials and energy. Amidst this backdrop, identifying growth companies with significant insider ownership can be an attractive strategy, as it may indicate confidence from those closest to the company's operations and potential resilience in navigating economic shifts.
Top 10 Growth Companies With High Insider Ownership
Overview: Hubei Century Network Technology Inc. operates an online entertainment platform in China and internationally, with a market cap of CN¥6.13 billion.
Operations: Hubei Century Network Technology Inc. generates its revenue primarily through its online entertainment platform operations both domestically and internationally.
Insider Ownership: 27.1%
Earnings Growth Forecast: 56.7% p.a.
Hubei Century Network Technology is forecast to achieve significant revenue growth of 22.7% annually, surpassing the Chinese market average. Despite this, recent financial results show a decline in sales and net income for the nine months ending September 2024, with revenues dropping to CNY 852.41 million from CNY 1.08 billion a year ago. The company's earnings are expected to grow by 56.69% annually, yet profitability remains three years away with low anticipated return on equity at 11.5%.
Overview: DeNA Co., Ltd. develops and operates mobile and online services globally, with a market cap of approximately ¥261.18 billion.
Operations: DeNA's revenue is primarily generated from its mobile and online services offered globally.
Insider Ownership: 21.1%
Earnings Growth Forecast: 91.3% p.a.
DeNA is projected to achieve profitability within three years, with earnings expected to grow 91.31% annually, outpacing the market average. Revenue growth of 4.8% per year is anticipated, slightly above the Japanese market's 4.1%. Despite this positive outlook, DeNA's share price has been highly volatile recently and its return on equity is forecasted to be low at 5.4%. No significant insider trading activity has been reported in the past three months.
Overview: Japan Elevator Service Holdings Co., Ltd. specializes in the repair, maintenance, and modernization of elevators and escalators in Japan, with a market cap of ¥246.15 billion.
Operations: The company generates revenue of ¥45.59 billion from its maintenance business segment, which focuses on elevators and escalators in Japan.
Insider Ownership: 22.4%
Earnings Growth Forecast: 19.1% p.a.
Japan Elevator Service Holdings Ltd. is experiencing strong growth, with earnings increasing by 38.7% over the past year and projected to grow 19.1% annually, surpassing the Japanese market average of 7.8%. Revenue is expected to grow by 12% per year, outpacing the market's 4.1%. The company recently expanded its service network with a new office in Chiba, enhancing customer service capabilities. Analysts anticipate a stock price rise of 20.8%, reflecting positive sentiment despite no recent insider trading activity reported.
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 SZSE:300494 TSE:2432 and TSE:6544.
