As global markets continue to rise, buoyed by optimism surrounding potential trade deals and advancements in artificial intelligence, growth stocks have notably outperformed their value counterparts. In this environment of heightened investor enthusiasm, companies with high insider ownership can be particularly appealing as they often signal confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership
Overview: CVC Capital Partners plc is a private equity and venture capital firm focusing on various investment strategies including middle market secondaries, infrastructure, credit, and management buyouts, with a market cap of €22.86 billion.
Operations: CVC Capital Partners plc operates through diverse revenue segments, focusing on middle market secondaries, infrastructure investments, credit solutions, management and leveraged buyouts, growth equity initiatives, mature company investments, recapitalizations, strip sales, and spinouts.
Insider Ownership: 20.2%
CVC Capital Partners is positioned for significant earnings growth, forecasted at 32.9% annually, outpacing the Dutch market. Despite high debt levels, its return on equity is expected to be very high in three years. Trading below estimated fair value suggests potential upside. Recent M&A discussions include acquiring Vivendi's stake in Telecom Italia and selling its stake in HealthCare Global Enterprises to KKR, highlighting strategic repositioning efforts and potential future growth opportunities.
Overview: NIBE Industrier AB (publ) develops, manufactures, markets, and sells energy-efficient solutions for indoor climate comfort and intelligent heating and control components internationally, with a market cap of SEK89.19 billion.
Operations: The company generates revenue from its segments as follows: SEK5.08 billion from Stoves, SEK13.24 billion from Element, and SEK33.89 billion from Climate Solutions.
Insider Ownership: 20.2%
NIBE Industrier is poised for substantial earnings growth, forecasted at 58.6% annually, surpassing the Swedish market. Despite a decline in profit margins to 1.9% and interest payments not being well covered by earnings, its revenue is expected to grow faster than the market at 7.1% per year. Trading at 16.6% below estimated fair value indicates potential upside, although recent financial results show decreased sales and net income compared to the previous year.
Overview: Truecaller AB (publ) develops and publishes mobile caller ID applications for individuals and businesses across India, the Middle East, Africa, and internationally, with a market cap of SEK22.61 billion.
Operations: The company generates revenue from its communications software segment, amounting to SEK1.78 billion.
Insider Ownership: 29.7%
Truecaller is positioned for significant growth, with earnings expected to increase by 25.8% annually, outpacing the Swedish market. Recent product updates for iOS users could enhance subscription revenue, leveraging new AI and caller ID capabilities. Insider activity shows more shares bought than sold recently, indicating confidence in future prospects. The company trades at a substantial discount to its estimated fair value, suggesting potential upside despite no substantial insider buying in recent months.
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 ENXTAM:CVC OM:NIBE B and OM:TRUE B.
