As global markets celebrate the Federal Reserve's first rate cut in over four years, U.S. stocks have surged to new highs, driven by optimism for a prolonged easing cycle. This buoyant market environment provides a fertile backdrop for identifying growth companies with high insider ownership—an indicator often associated with strong alignment between management and shareholder interests.
Top 10 Growth Companies With High Insider Ownership
Overview: Norwegian Air Shuttle ASA, along with its subsidiaries, offers air travel services both within Norway and internationally, with a market cap of NOK 11.76 billion.
Operations: Norwegian Air Shuttle ASA's revenue segments include air travel services provided domestically in Norway and internationally.
Insider Ownership: 14.3%
Earnings Growth Forecast: 11.1% p.a.
Norwegian Air Shuttle ASA has recently shown robust passenger growth and increased revenue, although net income has declined. The company reported revenues of NOK 9.35 billion for Q2 2024, up from NOK 6.87 billion a year ago, but net income decreased to NOK 477.1 million from NOK 537.9 million. Insider ownership remains high with more shares bought than sold in the past three months, indicating confidence in future growth despite revised lower earnings guidance due to operational challenges and softer traffic demand.
Overview: Maharah for Human Resources Company offers manpower services to both public and private sectors in Saudi Arabia and the United Arab Emirates, with a market cap of SAR3.40 billion.
Operations: Maharah's revenue segments include Corporate services at SAR1.46 billion, Individual services at SAR433.68 million, and Facility Management at SAR116.65 million.
Insider Ownership: 26.4%
Earnings Growth Forecast: 15.6% p.a.
Maharah for Human Resources reported strong Q2 2024 earnings with sales of SAR 537.1 million, up from SAR 462.59 million a year ago, and net income rising to SAR 51.11 million from SAR 35.1 million. Despite a dividend yield of 1.92% not being well covered by free cash flows, the company is forecasted to achieve high return on equity (33.9%) and revenue growth (10.2% per year), outpacing the SA market's growth rates.
Overview: SDIC Intelligence Xiamen Information Co., Ltd. operates in the information technology sector with a market cap of CN¥9.49 billion.
Operations: SDIC Intelligence Xiamen Information generates revenue from various segments within the information technology sector.
Insider Ownership: 29.5%
Earnings Growth Forecast: 64.1% p.a.
SDIC Intelligence Xiamen Information recently amended its articles of association and elected new directors, signaling potential governance improvements. The company reported half-year sales of CNY 548.18 million, up from CNY 454.8 million a year ago, with a reduced net loss of CNY 127.59 million compared to CNY 278.15 million previously. Forecasts suggest annual revenue growth of 21.7% and profitability within three years, although return on equity is expected to remain low at 6.9%.
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:NAS SASE:1831 and SZSE:300188.
