The Swedish stock market has been buoyed by favorable economic indicators and a supportive European Central Bank stance, contributing to a generally optimistic outlook. Amid this backdrop, growth companies with high insider ownership are particularly attractive as they often signal strong confidence from those closest to the business. In this article, we will explore three Swedish growth stocks that not only exhibit significant insider ownership but are also expecting up to 78% earnings growth.
Top 10 Growth Companies With High Insider Ownership In Sweden
Overview: Humble Group AB (publ) refines, develops, and distributes fast-moving consumer products in Sweden and internationally, with a market cap of SEK5.36 billion.
Operations: The company's revenue segments include Future Snacking (SEK950 million), Sustainable Care (SEK2.30 billion), Quality Nutrition (SEK1.53 billion), and Nordic Distribution (SEK2.67 billion).
Insider Ownership: 13%
Earnings Growth Forecast: 78.3% p.a.
Humble Group has demonstrated significant insider buying over the past three months, with no substantial insider selling. The company is expected to achieve profitability within three years, with revenue forecasted to grow at 11.5% annually—outpacing the Swedish market's growth rate. Recent earnings reports show a positive trend, with Q2 sales reaching SEK 1.86 billion and net income at SEK 32 million. Additionally, Humble Group secured an increased credit facility of SEK 1.95 billion in June 2024.
Overview: Medicover AB (publ) offers healthcare and diagnostic services in Poland, Sweden, and internationally, with a market cap of SEK28.20 billion.
Operations: Medicover generates revenue primarily from two segments: €610 million from Diagnostic Services and €1.32 billion from Healthcare Services.
Insider Ownership: 11.1%
Earnings Growth Forecast: 38.6% p.a.
Medicover has been growing its earnings significantly, with a 327.8% increase over the past year and a forecasted annual growth of 38.56%. The company recently reported Q2 sales of €509.4 million and net income of €6.3 million, up from €424.7 million and €5.5 million respectively, year-over-year. Despite no substantial insider buying in the last three months, Medicover's revenue is expected to exceed €2.2 billion by the end of 2025, indicating strong future prospects under new CFO Anand Patel starting October 2024.
Overview: Nolato AB (publ) develops, manufactures, and sells plastic, silicone, and thermoplastic elastomer products for various sectors including medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene, and other industries across Sweden and internationally; it has a market cap of SEK15.35 billion.
Operations: The company's revenue segments include Medical Solutions (SEK5.34 billion) and Segment Adjustment (SEK4.15 billion).
Insider Ownership: 28.9%
Earnings Growth Forecast: 23.2% p.a.
Nolato's earnings are forecast to grow significantly at 23.17% per year, outpacing the Swedish market's 15.2%. Recent Q2 results showed a slight decline in sales to SEK 2.44 billion but an increase in net income to SEK 169 million, with EPS rising to SEK 0.63 from SEK 0.58 year-over-year. Insider activity has seen more buying than selling recently, though not substantially, and the stock trades at a significant discount below its estimated 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 OM:HUMBLE OM:MCOV B and OM:NOLA B.
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