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 August 17, 2024 04:31 AM  finance.yahoo.com Positive

Top 3 Growth Stocks With High Insider Ownership

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In the wake of recent positive economic indicators, global markets have shown resilience with significant gains across major indices. As investors celebrate hopes for a "soft landing" in the U.S. economy, growth stocks have notably outpaced their value counterparts. In this favorable market environment, companies with high insider ownership often signal confidence from those who know the business best. Here are three growth stocks where insiders have substantial stakes, potentially aligning their interests closely with those of other shareholders.

Top 10 Growth Companies With High Insider Ownership

Name Insider Ownership Earnings Growth Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3) 11.9% 21.2% Atlas Energy Solutions (NYSE:AESI) 28.9% 42.6% Arctech Solar Holding (SHSE:688408) 38.7% 26.9% Gaming Innovation Group (OB:GIG) 26.7% 37.4% Medley (TSE:4480) 34% 28.8% On Holding (NYSE:ONON) 28.4% 24.7% Clinuvel Pharmaceuticals (ASX:CUV) 13.6% 26.8% Credo Technology Group Holding (NasdaqGS:CRDO) 14.4% 60.9% Vow (OB:VOW) 31.7% 97.7% EHang Holdings (NasdaqGM:EH) 32.8% 74.9%

Click here to see the full list of 1489 stocks from our Fast Growing Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

DNO

Simply Wall St Growth Rating: ★★★★☆☆

Overview: DNO ASA is involved in the exploration, development, and production of oil and gas assets across the Middle East, North Sea, and West Africa with a market cap of NOK 11.45 billion.

Operations: Revenue Segments (in millions of $): Exploration, development, and production of oil and gas assets in the Middle East ($1.20 billion), North Sea ($800 million), and West Africa ($400 million).

Insider Ownership: 13.1%

Earnings Growth Forecast: 45.2% p.a.

DNO ASA's earnings are forecast to grow significantly, with a 45.17% annual increase expected over the next three years. Despite trading at 29% below its estimated fair value, profit margins have decreased from 24% to 0.2%. Recent results show a substantial improvement in net income, reaching US$34.5 million for Q2 2024 compared to a loss last year. However, its dividend of NOK 0.3125 per share is not well covered by earnings and revenue growth remains modest at 2.5% annually.

Delve into the full analysis future growth report here for a deeper understanding of DNO. The valuation report we've compiled suggests that DNO's current price could be inflated. OB:DNO Ownership Breakdown as at Aug 2024

Siam Cement

Simply Wall St Growth Rating: ★★★★☆☆

Overview: The Siam Cement Public Company Limited, with a market cap of THB246 billion, operates in the cement and building materials, chemicals, and packaging sectors both in Thailand and internationally.

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Operations: The company's revenue segments include THB193.79 billion from the chemicals business and THB131.64 billion from the packaging business.

Insider Ownership: 33.7%

Earnings Growth Forecast: 47.7% p.a.

Siam Cement's earnings are expected to grow significantly at 47.71% annually, outpacing the Thai market's 14.9%. Despite this, its profit margins have declined from 5.3% to 1.5%, and recent results show a drop in net income from THB 49.22 billion to THB 12.27 billion for the first half of 2024. The stock trades at a substantial discount to its estimated fair value but faces challenges with debt coverage and dividend sustainability (2.93%).

Dive into the specifics of Siam Cement here with our thorough growth forecast report. Our valuation report here indicates Siam Cement may be undervalued. SET:SCC Earnings and Revenue Growth as at Aug 2024

Sri Trang Agro-Industry

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Sri Trang Agro-Industry Public Company Limited, with a market cap of THB31.95 billion, manufactures and distributes natural rubber products in Thailand, China, the United States, Singapore, Japan, and internationally.

Operations: The company's revenue segments include natural rubber products in Thailand, China, the United States, Singapore, Japan, and internationally.

Insider Ownership: 21.6%

Earnings Growth Forecast: 84.4% p.a.

Sri Trang Agro-Industry is forecast to become profitable within three years, with revenue growth expected at 15% annually, outpacing the Thai market's 6.5%. The company trades at a good value, 25.1% below its estimated fair value. However, it faces challenges with high debt coverage and a dividend yield of 4.81% not well supported by earnings or free cash flow. Recent earnings showed significant improvement in Q2 net income to THB 628.44 million from THB 110 million last year.

Navigate through the intricacies of Sri Trang Agro-Industry with our comprehensive analyst estimates report here. In light of our recent valuation report, it seems possible that Sri Trang Agro-Industry is trading behind its estimated value. SET:STA Earnings and Revenue Growth as at Aug 2024

Key Takeaways

Reveal the 1489 hidden gems among our Fast Growing Companies With High Insider Ownership screener with a single click here. Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Ready To Venture Into Other Investment Styles?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Find companies with promising cash flow potential yet trading below their fair value.

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:DNO SET:SCC and SET:STA.

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