In the wake of recent challenges in the global economy, particularly with China's stalled recovery impacting London's FTSE 100 index, investors are increasingly cautious about market volatility. In such uncertain times, identifying growth companies with high insider ownership can be a strategic approach, as these stocks often reflect management's confidence in their long-term potential.
Top 10 Growth Companies With High Insider Ownership In The United Kingdom
Overview: Craneware plc, along with its subsidiaries, develops, licenses, and supports computer software for the healthcare industry in the United States and has a market cap of £840.43 million.
Operations: The company generates revenue from its healthcare software segment, amounting to $189.27 million.
Insider Ownership: 16.5%
Craneware's earnings have grown 26.8% over the past year, with future earnings expected to grow at 24.3% annually, surpassing UK market growth forecasts. Despite this, recent months saw significant insider selling and share price volatility. The company's strategic partnership with Microsoft Azure enhances its healthcare solutions offering, potentially driving further business growth. Recent board changes include appointing Tamra Minnier as a Non-Executive Director, reflecting a focus on strengthening leadership in healthcare expertise.
Overview: Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom, with a market cap of £307.36 million.
Operations: The company's revenue segments include £24.20 million from Research & Fintech, £21.40 million from Distribution Channels, and £23.30 million from Intermediary Services.
Insider Ownership: 29.9%
Fintel's revenue is forecast to grow at 8% annually, outpacing the UK market, while earnings are expected to rise significantly at 34% per year. Despite a recent decline in profit margins from 12.7% to 8.6%, the company remains undervalued by approximately 34%. The completion of a £51 million equity offering supports growth initiatives, though insider trading activity has been minimal over the past three months.
Overview: LSL Property Services plc operates in the United Kingdom, offering business-to-business services to mortgage intermediaries and estate agency franchisees, as well as valuation services to lenders, with a market cap of £275.69 million.
Operations: The company's revenue segments include Financial Services generating £47.22 million, Surveying and Valuation contributing £79.49 million, and Estate Agency (excluding Financial Services) accounting for £30.61 million.
Insider Ownership: 10.7%
LSL Property Services has shown a strong turnaround with net income reaching £9.95 million for H1 2024, reversing a loss from the previous year. Earnings are expected to grow significantly at 28.23% annually, surpassing UK market averages. Revenue growth is forecasted at 12.1% per year, outpacing the market's 3.6%. Despite trading well below fair value estimates, dividends remain under-covered by earnings, and insider trading activity has been minimal recently.
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 AIM:CRW AIM:FNTL and LSE:LSL.
