Three High Insider Ownership Growth Companies With Earnings Growth Up To 112%

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As global markets exhibit mixed reactions to recent economic data, with small-cap stocks showing notable gains, investors are keenly observing the landscape for robust growth opportunities. In this context, companies with high insider ownership can be particularly compelling, as they often signal strong confidence from those closest to the business in its growth prospects and financial health.

Top 10 Growth Companies With High Insider Ownership

Name

Insider Ownership

Earnings Growth

Yggdrazil Group (SET:YGG)

18%

33.5%

Zhejiang Jolly PharmaceuticalLTD (SZSE:300181)

24%

22.3%

Cettire (ASX:CTT)

28.7%

26.7%

Medley (TSE:4480)

34%

28.7%

Arctech Solar Holding (SHSE:688408)

38.7%

25.4%

Seojin SystemLtd (KOSDAQ:A178320)

29.8%

58.7%

Clinuvel Pharmaceuticals (ASX:CUV)

13.6%

26.8%

Global Tax Free (KOSDAQ:A204620)

18.1%

72.4%

UTI (KOSDAQ:A179900)

34.1%

122.7%

HANA Micron (KOSDAQ:A067310)

20%

96.3%

Click here to see the full list of 1440 stocks from our Fast Growing Companies With High Insider Ownership screener.

We'll examine a selection from our screener results.

P/F Bakkafrost

Simply Wall St Growth Rating: ★★★★☆☆

Overview: P/F Bakkafrost operates in the production and sale of salmon products across North America, Western Europe, Eastern Europe, Asia, and other international markets, with a market capitalization of approximately NOK 32.83 billion.

Operations: P/F Bakkafrost generates revenue through various segments, notably DKK 3.67 billion from Farming Faroe Islands, DKK 1.35 billion from Farming Scotland, DKK 3496.01 million from Fishmeal, Fish Oil and Fish Feed, and DKK 9628.38 million from Sales and Other activities.

Insider Ownership: 13.3%

Earnings Growth Forecast: 24.8% p.a.

P/F Bakkafrost, a growth company with high insider ownership, is navigating mixed financial waters. While its earnings are expected to grow significantly at 24.8% annually, surpassing the Norwegian market's 12.2%, its revenue growth at 12.5% per year is modest compared to a high-growth benchmark of 20% per year. Recent operational updates include increased production volumes in Q2 2024 and stable sales performance in Q1, despite a slight dip in net income from the previous year. Analysts predict a potential price increase of 26.4%, suggesting an undervaluation at 76.2% below fair value estimates.

OB:BAKKA Ownership Breakdown as at Jul 2024
OB:BAKKA Ownership Breakdown as at Jul 2024

Hexagon Composites

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hexagon Composites ASA specializes in the production and distribution of composite pressure cylinders and fuel systems for alternative fuels globally, with a market capitalization of approximately NOK 6.27 billion.

Operations: Hexagon Composites' revenue is primarily generated through three segments: Hexagon Agility with NOK 4.32 billion, Hexagon Ragasco at NOK 633.48 million, and Hexagon Digital Wave contributing NOK 173.38 million.

Insider Ownership: 11.1%

Earnings Growth Forecast: 112.4% p.a.

Hexagon Composites, a company with significant insider ownership, is poised for growth but faces challenges. Recent contracts, like the US$12.8 million deal for TITAN modules and a US$57.7 million agreement with UPS for RNG fuel systems, underscore its strategic market expansion and commitment to renewable energy solutions. Despite these positives, Q1 2024 showed a revenue decline to NOK 1.08 billion and an increased net loss of NOK 157.74 million. Analysts remain optimistic about its future profitability and expect substantial earnings growth over the next three years.

OB:HEX Ownership Breakdown as at Jul 2024
OB:HEX Ownership Breakdown as at Jul 2024

CD Projekt

Simply Wall St Growth Rating: ★★★★★☆

Overview: CD Projekt S.A. is a Polish video game developer, publisher, and digital distributor with a market capitalization of approximately PLN 16.17 billion, specializing in PC and console gaming platforms.

Operations: The company's revenue is primarily generated through its GOG.com platform and CD PROJEKT RED segment, which together brought in approximately PLN 1.33 billion.

Insider Ownership: 35.2%

Earnings Growth Forecast: 25.8% p.a.

CD Projekt, with high insider ownership, demonstrates robust growth prospects, evidenced by its significant annual earnings and revenue growth forecasts, outpacing the Polish market. Recent financials show a strong uptick in quarterly revenue and net income. However, it's noteworthy that its Return on Equity is expected to remain low. The firm consistently shares profits with shareholders through dividends, reinforcing its commitment to investor returns while reinvesting substantially into reserve capital for future ventures.

WSE:CDR Ownership Breakdown as at Jul 2024
WSE:CDR Ownership Breakdown as at Jul 2024

Key Takeaways

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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:BAKKA OB:HEX and WSE:CDR.

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