As global markets navigate a busy earnings season and economic uncertainties, growth stocks have generally lagged behind value shares, with cautious earnings reports impacting major indices. Despite this backdrop, insider ownership in companies can signal confidence in their long-term potential and resilience amid market volatility. In the current environment, a good stock often combines robust growth prospects with substantial insider ownership, suggesting alignment between management's interests and those of shareholders.
Top 10 Growth Companies With High Insider Ownership
Overview: Asian Star Anchor Chain Jiangsu, with a market cap of CN¥7.60 billion, manufactures and sells anchor chains, marine mooring chains, and related accessories globally through its subsidiaries.
Operations: The company's revenue segments include the manufacture and sale of anchor chains, marine mooring chains, and related accessories on a global scale.
Insider Ownership: 37.9%
Revenue Growth Forecast: 23.8% p.a.
Asian Star Anchor Chain Jiangsu demonstrates promising growth potential with earnings forecasted to increase significantly over the next three years. Despite a slight decline in sales, net income improved to CNY 193.17 million for the nine months ending September 2024. The company's revenue growth is expected to outpace the Chinese market at 23.8% annually, although its earnings growth lags behind market expectations. With a Price-To-Earnings ratio of 31.2x, it remains attractively valued compared to peers.
Overview: JHT Design Co., Ltd. focuses on the research, development, production, and sale of semiconductor chip testing equipment in China and has a market cap of CN¥4.74 billion.
Operations: The company generates revenue primarily from the research, development, production, and sale of semiconductor chip testing equipment in China.
Insider Ownership: 23.1%
Revenue Growth Forecast: 29.3% p.a.
JHT Design Ltd. shows potential as a growth company with high insider ownership, despite recent declines in sales and net income for the nine months ending September 2024. The company reported CNY 256.33 million in sales and CNY 44.93 million in net income, both lower than the previous year. However, its earnings are forecasted to grow significantly at 33.9% annually, outpacing both revenue growth of 29.3% and market expectations in China.
Overview: Stemmer Imaging AG offers machine vision technology for industrial and non-industrial applications globally, with a market cap of €324.35 million.
Operations: The company's revenue segment consists of €126.23 million from machine vision technology for various applications worldwide.
Insider Ownership: 27.7%
Revenue Growth Forecast: 13.3% p.a.
Stemmer Imaging is poised for substantial growth, with earnings projected to increase significantly at 23.2% annually, outpacing the German market. Despite a recent decline in sales and net income, it trades below its estimated fair value. The company is undergoing a takeover by MiddleGround Management, which has secured an 83.54% stake with plans to delist Stemmer Imaging, offering shareholders €48 per share—a premium over recent trading prices.
Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
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 SHSE:601890 SHSE:603061 and XTRA:S9I.
