As global markets continue to react positively to political developments and technological advancements, with U.S. stocks reaching record highs amid optimism for softer tariffs and AI enthusiasm, investors are increasingly focused on growth opportunities. In such an environment, companies with high insider ownership can be particularly appealing as they often signal strong confidence from those who know the business best and align management interests closely with shareholders.
Top 10 Growth Companies With High Insider Ownership
Overview: Pexip Holding ASA is a video technology company that offers a comprehensive video conferencing platform and digital infrastructure globally, with a market capitalization of NOK4.51 billion.
Operations: The company's revenue primarily comes from the Sale of Collaboration Services, amounting to NOK1.07 billion.
Insider Ownership: 19.1%
Pexip Holding has seen a notable turnaround, reporting a net income of NOK 5.8 million in Q3 2024 compared to a loss the previous year. While insider selling was significant recently, insiders have bought more shares than they sold over the past three months. The company trades significantly below fair value estimates and is expected to achieve profitability within three years, with revenue growth projected at 13.7% annually, outpacing the Norwegian market average.
Overview: Suzhou Delphi Laser Co., Ltd. specializes in the R&D, manufacturing, and sale of precision laser processing equipment and lasers both in China and internationally, with a market cap of CN¥2.28 billion.
Operations: The company's revenue segments include the design and production of precision laser processing equipment and lasers for both domestic and international markets.
Insider Ownership: 28.2%
Suzhou Delphi Laser is poised for substantial earnings growth, with forecasts indicating a 46% annual increase, outpacing the Chinese market's average. However, its revenue growth at 18.5% per year lags behind the desired 20%, though it still surpasses the market average of 13.4%. Despite high non-cash earnings quality, recent financials reveal a net loss of CNY 21.35 million for nine months ending September 2024, highlighting profitability challenges amidst promising growth prospects.
Overview: Gstarsoft Co., Ltd. is involved in the research, development, design, and sale of industrial software both in China and internationally, with a market cap of CN¥2.58 billion.
Operations: Revenue Segments (in millions of CN¥):null
Insider Ownership: 34.4%
Gstarsoft's earnings are projected to grow significantly at 24.21% annually, although this is slightly below the Chinese market average of 25.1%. The company's revenue growth forecast of 24% per year outpaces the market's 13.4%. Despite a low future Return on Equity forecast of 4.6%, its Price-To-Earnings ratio of 55.4x remains attractive compared to the industry average. Recent buybacks totaling CNY 9.36 million indicate management confidence but profit margins have decreased from last year’s figures.
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 OB:PEXIP SHSE:688170 and SHSE:688657.
