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Desktop And Two Other Growth Stocks With Significant Insider Ownership

As global markets navigate through mixed signals, with the Nasdaq reaching new heights while the Dow experiences significant declines, investors are closely monitoring various economic indicators and corporate earnings reports. In this context, understanding the importance of insider ownership in growth companies can provide valuable insights into their potential resilience and alignment of interests between shareholders and management.

Top 10 Growth Companies With High Insider Ownership

Name

Insider Ownership

Earnings Growth

Hartshead Resources (ASX:HHR)

13.9%

86.3%

Modetour Network (KOSDAQ:A080160)

12.4%

45.6%

Gaming Innovation Group (OB:GIG)

22.8%

36.2%

Calliditas Therapeutics (OM:CALTX)

11.6%

50.3%

Elliptic Laboratories (OB:ELABS)

31.3%

124.6%

KebNi (OM:KEBNI B)

37.8%

90.4%

La Française de l'Energie (ENXTPA:FDE)

20.1%

37.7%

Vow (OB:VOW)

31.8%

97.5%

Adocia (ENXTPA:ADOC)

12.4%

104.5%

OSE Immunotherapeutics (ENXTPA:OSE)

24.9%

92.9%

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

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Let's review some notable picks from our screened stocks.

Desktop

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Desktop S.A., a company based in Brazil, specializes in offering fixed telephony, broadband internet, and TV subscription services with a market capitalization of R$1.87 billion.

Operations: The company generates R$1.03 billion from its operations in telecommunication services.

Insider Ownership: 14.6%

Revenue Growth Forecast: 11.5% p.a.

Desktop S.A. has demonstrated strong financial performance with a net income increase to BRL 18.86 million in Q1 2024, up from BRL 18.02 million the previous year, and a significant annual rise to BRL 102.34 million from BRL 47.98 million in the prior year. Despite high volatility in its share price and interest payments not well covered by earnings, Desktop is trading at 57.1% below its estimated fair value and shows robust growth prospects with earnings forecasted to grow at 42.81% per year, outpacing the Brazilian market's growth rate of 16.3%. However, its return on equity is expected to remain low at around 10% in three years' time.

BOVESPA:DESK3 Ownership Breakdown as at May 2024
BOVESPA:DESK3 Ownership Breakdown as at May 2024

Hexagon Composites

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hexagon Composites ASA specializes in manufacturing and selling composite pressure cylinders and fuel systems for alternative fuels globally, with a market capitalization of NOK 5.40 billion.

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

Insider Ownership: 11.1%

Revenue Growth Forecast: 11.3% p.a.

Hexagon Composites has a mixed outlook as a growth company with high insider ownership. Despite forecasts of revenue growth outpacing the Norwegian market at 11.3% annually, its earnings are expected to grow significantly in the next three years. However, recent substantial insider selling and low forecasted return on equity at 7.5% raise concerns. Additionally, the company's financial position is weakened by earnings not adequately covering interest payments, alongside a highly volatile share price recently. On a positive note, Hexagon Agility's extended contract with UPS for US$57.7 million to supply renewable natural gas systems underlines potential growth areas in green technology.

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

Alibaba Health Information Technology

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Alibaba Health Information Technology Limited operates in pharmaceutical direct sales, e-commerce platforms, and healthcare digital services across Mainland China and Hong Kong, with a market capitalization of HK$54.36 billion.

Operations: The company's revenue from its pharmaceutical and healthcare business totaled CN¥27.03 billion.

Insider Ownership: 24.2%

Revenue Growth Forecast: 12.4% p.a.

Alibaba Health Information Technology demonstrated robust financial performance with a significant year-over-year increase in net income and earnings per share, as reported in its latest annual results. The company is trading well below its estimated fair value, suggesting potential upside. Despite slower revenue growth forecasts compared to the broader Hong Kong market, Alibaba Health's profit growth is expected to outpace it substantially. However, concerns include shareholder dilution over the past year and one-off items impacting earnings quality.

SEHK:241 Ownership Breakdown as at May 2024
SEHK:241 Ownership Breakdown as at May 2024

Seize The Opportunity

Ready To Venture Into Other Investment Styles?

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 BOVESPA:DESK3 OB:HEX and SEHK:241.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com