As European inflation nears the central bank’s target, the Swedish market has shown resilience and potential for growth. In this environment, companies with high insider ownership can be particularly appealing to investors, as they often signal confidence in the company's future prospects. When evaluating stocks in such a market, it's crucial to consider not only their growth potential but also the level of insider ownership. This combination can provide a unique insight into the company’s stability and long-term value creation.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: BioArctic AB (publ) develops biological drugs for central nervous system disorders in Sweden and has a market cap of SEK14.59 billion.
Operations: BioArctic AB generates revenue primarily from its biotechnology segment, amounting to SEK299.35 million.
Insider Ownership: 34%
Earnings Growth Forecast: 98.4% p.a.
BioArctic, a growth company with high insider ownership, has shown significant recent developments. The company's Q2 2024 earnings reported a dramatic increase in sales to SEK 49.84 million from SEK 2.71 million year-over-year, though it still posted a net loss of SEK 68.43 million. Recent phase-1 studies for exidavnemab showed promising results in treating Parkinson's disease, and its Alzheimer's drug Leqembi received multiple international approvals. Revenue is forecasted to grow at an impressive annual rate of 42.4%.
Overview: Humble Group AB (publ) refines, develops, and distributes fast-moving consumer products in Sweden and internationally with a market cap of approximately SEK5.60 billion.
Operations: The company's revenue segments include Future Snacking (SEK950 million), Sustainable Care (SEK2.30 billion), Quality Nutrition (SEK1.53 billion), and Nordic Distribution (SEK2.67 billion).
Insider Ownership: 13%
Earnings Growth Forecast: 78.3% p.a.
Humble Group has shown promising growth, with Q2 2024 sales rising to SEK 1.86 billion from SEK 1.73 billion year-over-year and a net income of SEK 32 million. Insider ownership is strong, with substantial insider buying in the past three months. The company recently increased its credit facilities by SEK 300 million, enhancing financial flexibility. Revenue is forecasted to grow at an annual rate of 11.5%, outpacing the Swedish market's expected growth rate of 1%.
Overview: Medicover AB (publ) operates healthcare and diagnostic services in Poland, Sweden, and internationally, with a market cap of SEK27.93 billion.
Operations: Medicover generates revenue from two primary segments: Diagnostic Services (€610 million) and Healthcare Services (€1.32 billion).
Insider Ownership: 11.1%
Earnings Growth Forecast: 38.6% p.a.
Medicover's earnings grew by 327.8% over the past year, and its revenue is forecast to grow at 14% annually, faster than the Swedish market. Earnings are expected to increase significantly at 38.6% per year, outpacing the market's 15.1%. Despite low future return on equity (19.5%) and large one-off items impacting results, insider activity shows more buying than selling recently. Medicover also announced a new CFO appointment and expects organic revenue to exceed €2.2 billion by year-end 2025.
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 OM:BIOA B OM:HUMBLE and OM:MCOV B.
