The Swedish stock market has been experiencing a period of mixed performance, with small-cap and value shares outpacing large-cap growth stocks. Amid this backdrop, three Swedish growth companies stand out due to their high insider ownership and impressive earnings growth projections. High insider ownership often signals strong confidence in the company's future prospects, making these stocks particularly interesting in today's market environment.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: EQT AB (publ) is a global private equity firm specializing in private capital and real asset segments, with a market cap of SEK401.46 billion.
Operations: The company's revenue segments include Central (€37.20 million), Real Assets (€878.70 million), and Private Capital (€1.28 billion).
Insider Ownership: 31%
Earnings Growth Forecast: 56.7% p.a.
EQT AB (publ) exemplifies a growth company with high insider ownership in Sweden. Recently, EQT commenced a share repurchase program authorized by shareholders, aiming to adjust its capital structure and support acquisitions. The company's earnings surged to €282 million for H1 2024 from €120 million the previous year. Additionally, EQT is actively involved in significant M&A activities, including potential buyouts of Lighthouse Learnings and BSV Group. Insiders have shown confidence by buying more shares than they sold recently.
Overview: HMS Networks AB (publ) provides products that enable industrial equipment to communicate and share information globally, with a market cap of SEK 20.37 billion.
Operations: HMS Networks AB (publ) generates revenue from its Wireless Communications Equipment segment, amounting to SEK 3.01 billion.
Insider Ownership: 12.6%
Earnings Growth Forecast: 26.3% p.a.
HMS Networks demonstrates characteristics of a growth company with high insider ownership in Sweden. Despite a recent decline in net income to SEK 34 million for Q2 2024, the company's sales increased to SEK 845 million. Earnings are forecast to grow at 26.25% annually, outpacing the Swedish market's growth rate. Revenue is also expected to rise by 12.2% per year. Insiders have been buying more shares than selling recently, reflecting confidence in the company's future prospects despite a high level of debt and shareholder dilution over the past year.
Overview: Sectra AB (publ) provides solutions for medical IT and cybersecurity sectors across Sweden, the United Kingdom, the Netherlands, and other parts of Europe, with a market cap of SEK46.36 billion.
Operations: Sectra's revenue segments include Imaging IT Solutions at SEK2.55 billion, Secure Communications at SEK367.35 million, and Business Innovation at SEK89.87 million.
Insider Ownership: 30.3%
Earnings Growth Forecast: 19.3% p.a.
Sectra exemplifies a growth company with high insider ownership in Sweden. Earnings are forecast to grow at 19.3% annually, surpassing the Swedish market's 15.4%. Revenue is expected to increase by 14.7% per year, also outpacing the market. Recent developments include successful cloud service implementations in Belgian hospitals and a new diagnostic IT module for genomics in collaboration with the University of Pennsylvania Health System, enhancing Sectra's portfolio and operational efficiency.
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 OM:EQT OM:HMS and OM:SECT B.
