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As global markets experience a surge, with U.S. stock indexes nearing record highs and inflation data shaping economic expectations, investors are keenly observing growth stocks that have been outperforming value shares. In this environment, companies with high insider ownership can be particularly appealing as they often signal confidence in the company's potential and alignment of interests between insiders and shareholders.
Top 10 Growth Companies With High Insider Ownership
Name | Insider Ownership | Earnings Growth |
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3) | 17.3% | 22.8% |
SKS Technologies Group (ASX:SKS) | 29.7% | 24.8% |
Propel Holdings (TSX:PRL) | 36.5% | 38.7% |
CD Projekt (WSE:CDR) | 29.7% | 39.4% |
On Holding (NYSE:ONON) | 19.1% | 29.7% |
Kingstone Companies (NasdaqCM:KINS) | 20.8% | 24.9% |
Pharma Mar (BME:PHM) | 11.9% | 45.4% |
Elliptic Laboratories (OB:ELABS) | 26.8% | 121.1% |
Plenti Group (ASX:PLT) | 12.7% | 120.1% |
Findi (ASX:FND) | 35.8% | 111.4% |
Here's a peek at a few of the choices from the screener.
Basic-Fit
Simply Wall St Growth Rating: ★★★★★☆
Overview: Basic-Fit N.V., with a market cap of €1.50 billion, operates fitness clubs through its subsidiaries.
Operations: The company generates revenue from its fitness club operations, with €505.17 million coming from the Benelux region and €626.41 million from France, Spain, and Germany.
Insider Ownership: 12%
Basic-Fit has seen substantial insider buying over the past three months, indicating confidence in its growth potential. While profit margins have declined from 1.9% to 0.7%, earnings are forecast to grow significantly at 77.72% annually, outpacing the Dutch market's average of 12.9%. Revenue growth is expected at 14.6% per year, faster than the market's 8%. However, interest payments remain poorly covered by earnings, and large one-off items affect financial results.
Medy-Tox
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Medy-Tox Inc. is a biopharmaceutical company based in South Korea, with a market cap of ₩813.78 billion.
Operations: The company generates revenue primarily from its biotechnology segment, amounting to ₩241.45 billion.
Insider Ownership: 20.2%
Medy-Tox is trading at 47.1% below its estimated fair value, presenting a potential opportunity for investors focused on growth companies with high insider ownership. The company has completed several share buyback programs aimed at stabilizing stock price and enhancing shareholder value, repurchasing shares worth billions of KRW recently. Earnings are projected to grow significantly at 61.33% annually, surpassing the Korean market's average growth rate of 25.8%, although revenue growth lags behind the ideal threshold of 20% per year.