In the current Canadian market, yields have stabilized around 3.2% amid contained inflation data and growth concerns, creating a supportive environment for equities as potential rate cuts by the Bank of Canada remain on the table. In this context, stocks with high insider ownership can be particularly appealing due to their alignment with shareholder interests and potential for significant earnings growth, making them worth considering in an evolving economic landscape.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Green Thumb Industries Inc. is involved in the manufacturing, distribution, marketing, and sale of cannabis products for both medical and adult-use markets in the United States with a market cap of CA$2.27 billion.
Operations: The company generates revenue through its Retail segment, contributing $823.68 million, and its Consumer Packaged Goods segment, adding $619.12 million.
Insider Ownership: 10.1%
Earnings Growth Forecast: 28.1% p.a.
Green Thumb Industries reported sales of US$1.14 billion and net income of US$73.08 million for 2024, showing significant profitability improvement from the previous year. Despite limited insider trading activity recently, analysts expect the stock price to rise considerably. The company trades below its estimated fair value and its earnings are forecast to grow significantly at 28.1% annually, outpacing the Canadian market's growth expectations. However, Return on Equity is projected to remain modest at 10.7%.
Overview: Allied Gold Corporation, along with its subsidiaries, engages in the exploration and production of mineral deposits in Africa and has a market cap of CA$1.45 billion.
Operations: The company's revenue is derived from its operations at the Agbaou Mine ($150.18 million), Bonikro Mine ($212.62 million), and Sadiola Mine ($376.41 million).
Insider Ownership: 17.7%
Earnings Growth Forecast: 84.9% p.a.
Allied Gold Corporation is poised for substantial growth, with revenue projected to increase by 24.8% annually, significantly outpacing the Canadian market. Recent production guidance indicates a potential rise in gold output to 375,000-400,000 ounces in 2025. The company secured a $175 million streaming transaction with Wheaton Precious Metals to fund its Kurmuk project, enhancing financial stability and growth prospects. Despite past shareholder dilution and limited insider trading activity recently, analysts predict significant stock price appreciation.
Overview: Canfor Corporation is an integrated forest products company operating in the United States, Asia, Canada, Europe, and internationally with a market cap of CA$1.78 billion.
Operations: The company's revenue segments include Lumber at CA$4.56 billion and Pulp & Paper at CA$829.40 million.
Insider Ownership: 22.4%
Earnings Growth Forecast: 64.9% p.a.
Canfor is poised for growth, with earnings expected to grow 64.93% annually and revenue projected to rise by 5.9% per year, surpassing the Canadian market's average. Analysts agree on a potential stock price increase of 28.7%. Despite no recent insider trading activity, Canfor trades at good value compared to peers, though its future Return on Equity is forecasted to be modest at 7.7%, indicating room for improvement in profitability metrics.
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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 CNSX:GTII TSX:AAUC and TSX:CFP.
