In This Article:
In the midst of a volatile week marked by cautious earnings reports and mixed economic signals, global markets have seen major indices like the Nasdaq Composite and S&P MidCap 400 hit record intraday highs before pulling back. As growth stocks lag behind value shares, insider ownership becomes an important factor to consider when evaluating potential resilience and alignment of interests between company leadership and shareholders.
Top 10 Growth Companies With High Insider Ownership
| Name | Insider Ownership | Earnings Growth |
| Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3) | 17.3% | 21.1% |
| Archean Chemical Industries (NSEI:ACI) | 22.9% | 34% |
| Kirloskar Pneumatic (BSE:505283) | 30.3% | 26.3% |
| Laopu Gold (SEHK:6181) | 36.4% | 33% |
| Pharma Mar (BME:PHM) | 11.8% | 55.1% |
| Alkami Technology (NasdaqGS:ALKT) | 11.2% | 98.6% |
| Adveritas (ASX:AV1) | 21.2% | 144.2% |
| Plenti Group (ASX:PLT) | 12.8% | 107.6% |
| EHang Holdings (NasdaqGM:EH) | 32.8% | 81.4% |
| Credo Technology Group Holding (NasdaqGS:CRDO) | 13.9% | 95% |
Let's take a closer look at a couple of our picks from the screened companies.
WemadeLtd
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Wemade Co., Ltd. develops and publishes games in South Korea and internationally, with a market cap of ₩1.29 trillion.
Operations: The company's revenue is primarily derived from its Gaming Business segment, which generated ₩684.76 billion.
Insider Ownership: 39.7%
Wemade Ltd. exhibits strong potential as a growth company with high insider ownership, despite recent financial challenges. The company reported a net loss of KRW 51.6 billion for Q2 2024 but showed improvement over the first half of the year with KRW 4.11 billion in net income, reversing last year's loss. Forecasts indicate earnings growth of over 100% annually and profitability within three years, suggesting robust future performance amidst its current undervaluation at 64% below estimated fair value.
Fastighets AB Balder
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Fastighets AB Balder (publ) develops, owns, and manages residential and commercial properties across Sweden, Denmark, Finland, Norway, Germany, and the United Kingdom with a market cap of SEK101.79 billion.
Operations: The company's revenue from its real estate rental segment amounts to SEK12.73 billion.
Insider Ownership: 28.8%
Fastighets AB Balder is poised for growth, with revenue expected to increase by 3.6% annually, outpacing the Swedish market's minimal growth. However, its financial position is strained as interest payments aren't well covered by earnings. Despite recent shareholder dilution and a low forecasted return on equity of 5.7%, the company aims for profitability within three years. The recent SEK 1.48 billion equity offering may support its strategic initiatives amidst these challenges.