As global markets continue to navigate a landscape of geopolitical tensions and economic indicators, U.S. indexes are approaching record highs with broad-based gains, bolstered by strong labor market data and rising home sales. In this context of cautious optimism, growth companies with high insider ownership can be particularly appealing as they often reflect confidence from those who know the business best.
Top 10 Growth Companies With High Insider Ownership
Overview: Swissquote Group Holding Ltd offers a range of online financial services to retail, affluent, and professional institutional investors globally, with a market cap of CHF5.01 billion.
Operations: The company's revenue is primarily derived from two segments: Leveraged Forex, contributing CHF93.28 million, and Securities Trading, which accounts for CHF488.98 million.
Insider Ownership: 11.4%
Swissquote Group Holding demonstrates potential as a growth company with high insider ownership, supported by its substantial earnings growth of 36.9% over the past year and forecasted revenue increase of 11.1% annually, outpacing the Swiss market's 4.2%. Although expected earnings growth at 12.7% is not significantly high, it surpasses the market average of 11.4%. The stock trades at a considerable discount to its estimated fair value, indicating possible undervaluation opportunities.
Overview: ShenZhen Woer Heat-Shrinkable Material Co., Ltd. operates in the manufacturing sector, focusing on heat-shrinkable materials, with a market cap of CN¥21.79 billion.
Operations: ShenZhen Woer Heat-Shrinkable Material Co., Ltd. generates its revenue primarily from the production and sale of heat-shrinkable materials, contributing significantly to its market presence in the manufacturing sector.
Insider Ownership: 19.1%
ShenZhen Woer Heat-Shrinkable Material Ltd. exhibits strong growth potential, with revenue forecasted to increase by 21.8% annually, surpassing the Chinese market average of 13.8%. Recent earnings showed significant improvement, with sales reaching CNY 4.82 billion and net income rising to CNY 655.1 million for the first nine months of 2024. Despite high share price volatility and an unstable dividend history, its Price-To-Earnings ratio suggests it is trading at good value compared to industry peers.
Overview: CD Projekt S.A., along with its subsidiaries, focuses on the development, publishing, and digital distribution of video games for personal computers and consoles in Poland, with a market cap of PLN16.07 billion.
Operations: The company's revenue segments include GOG.Com, generating PLN238.12 million, and CD PROJEKT RED, contributing PLN1.14 billion.
Insider Ownership: 29.7%
CD Projekt demonstrates robust growth potential with earnings forecasted to grow 17.47% annually, outpacing the Polish market's 15.3%. Recent earnings for H1 2024 showed revenue at PLN 424.81 million and net income at PLN 170.01 million, reflecting substantial year-on-year increases. Despite no recent insider trading activity, the company's high return on equity forecast (29.1%) indicates strong financial health, supporting its position among growth companies with significant insider ownership influence.
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 SWX:SQN SZSE:002130 and WSE:CDR.
