As global markets navigate a period of fluctuating consumer confidence and mixed economic indicators, major stock indexes have seen moderate gains, with large-cap growth stocks leading the charge. In this climate, companies with high insider ownership can often signal strong internal confidence and alignment with shareholder interests. This article explores three growth companies where insiders hold up to 25% ownership, highlighting their potential appeal in today's market landscape.
Top 10 Growth Companies With High Insider Ownership
Overview: CURVES HOLDINGS Co., Ltd. operates and manages women's fitness clubs under the Curves brand in Japan, with a market capitalization of ¥71.53 billion.
Operations: CURVES HOLDINGS Co., Ltd. generates revenue primarily from operating and managing fitness clubs for women under the Curves brand in Japan.
Insider Ownership: 16.7%
CURVES HOLDINGS demonstrates potential as a growth company with high insider ownership, showing strong financial metrics and market positioning. The company is trading at 32.5% below its estimated fair value, indicating good relative value compared to peers. Earnings are forecasted to grow at 9.6% annually, outpacing the Japanese market average of 7.8%. Recent dividend increases further reflect confidence in future performance, with expectations for net sales of ¥38 billion and operating profit of ¥6.3 billion for fiscal year ending August 2025.
Overview: Semperit Aktiengesellschaft Holding is a global company that develops, produces, and sells rubber products for the medical and industrial sectors, with a market cap of €250.99 million.
Operations: The company's revenue is primarily derived from its Semperit Engineered Applications segment, which accounts for €380.82 million, followed by the Semperit Industrial Applications segment at €288.16 million, and Surgical Operations contributing €34.32 million.
Insider Ownership: 10.1%
Semperit Holding exhibits potential for growth, trading at 53.2% below its estimated fair value. Despite a recent net loss of EUR 2.5 million in Q3 2024, the company has improved from a EUR 30.65 million loss a year ago and reported net income of EUR 7.14 million for the nine months ended September 2024. Earnings are forecasted to grow significantly at nearly 47% annually, surpassing Austrian market expectations, although profit margins have declined slightly from last year.
Overview: Verve Group SE operates a software platform facilitating the automated buying and selling of digital advertising space in North America and Europe, with a market cap of €597.80 million.
Operations: The company generates revenue through its Demand Side Platforms (DSP) with €73.36 million and Supply Side Platforms (SSP) with €367.48 million in North America and Europe.
Insider Ownership: 25.1%
Verve Group is poised for substantial growth, with earnings expected to increase significantly at 44.3% annually, outpacing the German market. Despite recent volatility and a drop in net income to EUR 7.63 million in Q3 2024 from EUR 39.26 million the previous year, insider buying has been strong over the past three months. The company trades at a significant discount to its estimated fair value and anticipates revenue growth exceeding market averages despite lower return on equity forecasts.
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 TSE:7085 WBAG:SEM and XTRA:M8G.
