As global markets navigate a mixed start to the new year, with major indices reflecting both gains and declines, investors are closely watching economic indicators such as the Chicago PMI and GDP forecasts for signs of future trends. Amidst this backdrop, growth companies with high insider ownership continue to attract attention due to their potential resilience and alignment of interests between management and shareholders. In this context, examining stocks where insiders hold significant stakes can provide insights into companies that might be well-positioned for sustained growth despite market fluctuations.
Top 10 Growth Companies With High Insider Ownership
Overview: Ambu A/S is a medical technology company that develops, produces, and sells medical devices to hospitals, clinics, and rescue services worldwide with a market cap of DKK29.30 billion.
Operations: Ambu A/S generates revenue primarily from its Disposable Medical Products segment, which accounts for DKK5.39 billion.
Insider Ownership: 24.9%
Earnings Growth Forecast: 27% p.a.
Ambu's earnings are forecast to grow significantly at 27% annually, outpacing the Danish market. Despite a recent net loss in Q4, full-year sales increased to DKK 5.39 billion from DKK 4.78 billion previously, with net income rising to DKK 235 million. Insider activity shows more buying than selling recently, though not substantial. Ambu's inclusion in the OMX Copenhagen 20 Index and board changes highlight its evolving corporate landscape amidst growth prospects.
Overview: Auras Technology Co., Ltd. manufactures, processes, and retails electronic materials and computer cooling modules across China, Taiwan, Ireland, Singapore, the United States, and internationally with a market cap of NT$63.65 billion.
Operations: The company's revenue segment includes NT$14.99 billion from electronic components and parts.
Insider Ownership: 19.8%
Earnings Growth Forecast: 43.1% p.a.
Auras Technology's revenue is forecast to grow at 28.6% annually, surpassing the Taiwan market's average growth rate. Despite a volatile share price and past shareholder dilution, the company has demonstrated strong earnings growth of 36.1% over the past year. Third-quarter sales increased to TWD 4.22 billion from TWD 3.49 billion a year ago, although net income declined slightly. The company's high expected return on equity of 32.4% indicates robust future profitability potential without recent insider trading activity noted.
Overview: Quanta Computer Inc. is a global manufacturer and seller of notebook computers, with operations spanning Asia, the Americas, Europe, and other international markets, and has a market cap of NT$1.14 trillion.
Operations: The company's revenue from the Electronics Sector amounts to NT$2.78 billion.
Insider Ownership: 13.7%
Earnings Growth Forecast: 19.7% p.a.
Quanta Computer's revenue is projected to grow at 36.8% annually, significantly outpacing the Taiwan market. Recent earnings reports show third-quarter sales rising to TWD 424.55 billion from TWD 286.50 billion a year prior, with net income increasing to TWD 16.63 billion from TWD 12.80 billion, highlighting robust growth despite a dividend not well covered by free cash flows. Analysts agree on a potential stock price increase of 26%, reflecting strong future prospects without recent insider trading activity noted.
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 CPSE:AMBU B TPEX:3324 and TWSE:2382.
