Global markets have shown resilience recently, with U.S. equities recovering after a significant sell-off and growth stocks outperforming value stocks, driven by strong performance in the technology sector. Amid these market dynamics, insider ownership can be a valuable indicator of confidence in a company’s long-term prospects. In this context, identifying growth companies with high insider ownership and notable revenue growth can provide unique insights into potential investment opportunities.

Top 10 Growth Companies With High Insider Ownership

Click here to see the full list of 1,504 stocks from our high-growth, high-insider-ownership screener.

Below we highlight a few of our favorites from our exclusive screener.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: 99 Speed ​​Mart Retail Holdings Berhad, an investment company with a market capitalization of MYR 15.96 billion, operates mini-supermarkets in Malaysia.

Operation: Department stores’ turnover is MYR 8.97 billion.

Insider ownership: 31.5%

Sales growth forecast: 10.8% per year

99 Speed ​​​​Mart Retail Holdings Berhad, a growth company with high insider ownership, has shown strong financial performance. Revenue is expected to grow 10.8% annually, outperforming the Malaysian market at 6.2%. Earnings grew 20.4% last year and are expected to grow 13.29% annually, outperforming the market at 10.6%. The recent IPO raised MYR 2.36 billion, supporting further expansion. Trading at an attractive valuation below fair value increases the investment’s attractiveness.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Will Semiconductor Co., Ltd. is a semiconductor design company offering sensors, analog solutions, touchscreen and display solutions with a market capitalization of CN¥101.72 billion.

Operation: Revenue segments (in millions of CN¥): Sensor solutions: 5,600; Analog solutions: 3,200; Touch screen and display solutions: 2,400. Will Semiconductor generates revenue from sensor solutions (CN¥5.60 billion), analog solutions (CN¥3.20 billion) and touch screen and display solutions (CN¥2.40 billion).

Insider ownership: 30.7%

Sales growth forecast: 13.8% per year

Will Semiconductor has shown substantial growth, with revenue in H1 2024 reaching CNY 12.09 billion compared to CNY 8.86 billion a year ago, and net profit rising to CNY 1.37 billion from CNY 153.12 million. Earnings are expected to grow significantly at an annual rate of 38.7% over the next three years, outpacing the Chinese market’s growth rate of 23%. Despite lower future return on equity forecasts (17.3%), analysts expect the stock price to rise by around 46.7%.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Merida Industry Co., Ltd. produces and sells bicycles and parts in Taiwan, China, Hong Kong, Japan and Europe with a market capitalization of NT$66.08 billion.

Operation: The revenue from the production and sale of bicycles and parts is NT$26.58 billion.

Insider ownership: 26.8%

Sales growth forecast: 12.7% per year

Merida Industry’s recent earnings report showed mixed results, with revenue in Q2 2024 rising to TWD 9.32 billion from TWD 7.46 billion a year ago, but net profit falling slightly to TWD 655.55 million from TWD 671.77 million. Despite this, the company’s earnings are forecast to grow significantly at 34.6% per year over the next three years, outpacing the Taiwanese market’s growth rate of 18.4%. High insider ownership and significant expected earnings growth make it an interesting prospect for investors looking for growth opportunities.

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This article from Simply Wall St is of a general nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term oriented analysis driven by fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in the stocks mentioned. The analysis only takes into account shares directly held by insiders. It does not include indirect ownership of shares through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per year) growth rates over 1-3 years.

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