As the TSX reaches all-time highs, buoyed by optimism surrounding central bank policies and robust corporate earnings, Canadian investors are navigating a landscape shaped by global economic trends and U.S. election uncertainties. In this environment, growth companies with high insider ownership can offer unique insights into market confidence and potential resilience, making them compelling considerations for those seeking to align investment strategies with prevailing economic conditions.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Colliers International Group Inc. offers commercial real estate and investment management services to corporate and institutional clients across the Americas, Europe, the Middle East, Africa, and the Asia Pacific, with a market cap of CA$10.31 billion.
Operations: The company's revenue is derived from several segments: Americas ($2.59 billion), Asia Pacific ($614.55 million), Investment Management ($496.42 million), and Europe, Middle East & Africa (EMEA) ($734.93 million).
Insider Ownership: 14.2%
Colliers International Group, with significant insider ownership, forecasts strong earnings growth of 20.8% annually, outpacing the Canadian market's 14.6%. Despite recent substantial insider selling and no major purchases in the past three months, its revenue is expected to grow at 11% per year. Recent earnings showed a turnaround from a net loss to a US$36.72 million profit for Q2 2024. The company is expanding its European presence through strategic partnerships like SPGI Zurich AG.
Overview: Ivanhoe Mines Ltd. is involved in the mining, development, and exploration of minerals and precious metals primarily in Africa, with a market capitalization of CA$27.42 billion.
Operations: Ivanhoe Mines Ltd. focuses on the mining, development, and exploration of minerals and precious metals in Africa.
Insider Ownership: 12.3%
Ivanhoe Mines, with significant insider ownership, is poised for substantial growth. Despite a recent decline in net income to US$10.85 million for the first half of 2024, its forecasted revenue and earnings growth rates of 84.2% and 67.7% annually far surpass Canadian market averages. The company's strategic expansion into Zambia through a memorandum with the Ministry of Mines underscores its commitment to long-term mineral resource development, bolstering its growth potential further.
Overview: VersaBank offers a range of banking products and services in Canada and the United States, with a market cap of CA$462.17 million.
Operations: The company's revenue segments include CA$105.16 million from digital banking and CA$10.75 million from cybersecurity services and banking and financial technology development.
Insider Ownership: 13.3%
VersaBank demonstrates strong growth potential with high insider ownership, as its earnings are forecast to grow significantly at 30.4% annually, outpacing the Canadian market. The bank is trading at a substantial discount to its estimated fair value and analysts predict a price increase of 23.6%. Recent earnings show stable performance with net income for nine months reaching CAD 34.23 million, reflecting a strategic focus on expansion through its new U.S. subsidiary.
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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 TSX:CIGI TSX:IVN and TSX:VBNK.
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