Amid a backdrop of global market fluctuations and economic indicators suggesting both growth and contraction across various sectors, investors are keenly observing trends that could influence their portfolios. In this environment, growth companies with high insider ownership stand out as potentially resilient investments, as insiders' substantial equity stakes often align their interests closely with those of shareholders.
Top 10 Growth Companies With High Insider Ownership
Overview: Locaweb Serviços de Internet S.A. provides hosting, software licensing, and technical support services in Brazil, with a market capitalization of approximately R$2.63 billion.
Operations: The company generates revenue through two primary segments: Commerce, which brings in R$891.89 million, and Be Online & SaaS, contributing R$418.63 million.
Insider Ownership: 27.2%
Earnings Growth Forecast: 70.5% p.a.
Locaweb Serviços de Internet, a Brazilian tech company, is poised for significant growth with earnings forecasted to increase at a robust pace. Despite its highly volatile share price recently, the company's revenue is expected to outpace the broader Brazilian market. In Q1 2024, Locaweb reported a substantial rise in sales to BRL 320.61 million and a notable increase in net income to BRL 24.47 million from the previous year, reflecting strong operational performance despite low projected Return on Equity of 4% in three years.
Overview: iFAST Corporation Ltd. is a financial services corporation that offers investment products and services across Singapore, Hong Kong, Malaysia, China, and the United Kingdom, with a market capitalization of approximately SGD 2.23 billion.
Operations: The firm operates in the financial services sector, providing investment products and services across multiple regions including Singapore, Hong Kong, Malaysia, China, and the United Kingdom.
Insider Ownership: 28.7%
Earnings Growth Forecast: 30.8% p.a.
iFAST Corporation Ltd. has demonstrated a robust financial trajectory, with a significant 986.1% earnings growth over the past year and an anticipated annual profit growth of 30.8%. Although revenue growth is slower at 12.9% annually compared to the broader market's faster pace, iFAST's high insider ownership aligns with strategic decisions like recent share buybacks and bond issuances totaling SGD 200 million under its new debt program. These moves reflect a commitment to leveraging internal resources for growth while maintaining substantial control over operations.
Overview: San Fu Chemical Co., Ltd. is a company based in Taiwan that specializes in the manufacturing and sales of diverse chemical products, with a market capitalization of NT$15.41 billion.
Operations: The company's revenue is primarily derived from its Basic Chemicals Department, which generated NT$1.10 billion, and its Precision Special Chemicals Department, with revenues of NT$4.00 billion.
Insider Ownership: 37.1%
Earnings Growth Forecast: 37.8% p.a.
San Fu Chemical has shown promising financial performance with first-quarter earnings rising from TWD 96.08 million to TWD 111.24 million year-over-year, alongside a slight dip in sales. The company's revenue and earnings growth are outpacing the Taiwanese market with projections of 20.5% and 37.8% respectively, indicating robust potential despite an unstable dividend track record. Recent leadership changes and corporate charter amendments suggest strategic shifts that could influence future growth trajectories, reflecting a proactive management approach under high insider ownership.
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 BOVESPA:LWSA3 SGX:AIY and TWSE:4755.
