As we enter the fourth quarter of 2024, the Canadian stock market has experienced a strong performance with the TSX up over 14% year-to-date, despite recent volatility driven by uncertainties in international relations and political events. In such an environment, growth companies with high insider ownership can be particularly appealing to investors, as they often indicate confidence from those closest to the business and may offer stability amidst broader market fluctuations.
Top 10 Growth Companies With High Insider Ownership In Canada
Overview: Allied Gold Corporation, with a market cap of CA$981.04 million, explores for and produces mineral deposits in Africa through its subsidiaries.
Operations: The company generates revenue from its mineral exploration and production activities in Africa, with contributions of $142.03 million from the Agbaou Mine, $193.93 million from the Bonikro Mine, and $391.07 million from the Sadiola Mine.
Insider Ownership: 17.7%
Earnings Growth Forecast: 73% p.a.
Allied Gold Corporation is undergoing significant expansion with the Sadiola Gold Mine project, aiming to boost production and operational efficiency. Recent financial results show improved profitability, with net income rising to US$8.3 million in Q2 2024 from US$1.15 million a year ago. Despite past shareholder dilution, the company recently raised CAD 192.2 million through a follow-on equity offering, positioning itself for anticipated revenue growth of 21.5% annually over the next three years.
Overview: Aritzia Inc., along with its subsidiaries, is engaged in designing, developing, and selling women's apparel and accessories in the United States and Canada, with a market capitalization of approximately CA$5.74 billion.
Operations: The company's revenue is primarily generated from its apparel segment, amounting to CA$2.37 billion.
Insider Ownership: 18.9%
Earnings Growth Forecast: 60.4% p.a.
Aritzia's growth prospects are supported by its forecasted annual earnings increase of 60.4%, significantly outpacing the Canadian market. Despite a decline in net profit margins from 7.5% to 3.3%, revenue is expected to grow between $2.52 billion and $2.62 billion for fiscal year 2025, representing an increase of approximately 8% to 12%. However, insider activities show significant selling over the past quarter, and shareholders have experienced dilution recently.
Overview: Nuvei Corporation offers payment technology solutions to merchants and partners across various regions, including North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific, with a market cap of CA$6.47 billion.
Operations: The company's revenue segment is primarily derived from its provision of payment technology solutions to merchants and partners, totaling $1.31 billion.
Insider Ownership: 20.1%
Earnings Growth Forecast: 96.7% p.a.
Nuvei's growth trajectory is bolstered by its forecasted revenue increase of 12.6% annually, surpassing the Canadian market average. Despite recent shareholder dilution and a decline in net income to US$3.47 million for Q2 2024, strategic expansions like the JCB partnership in APAC and collaborations with Fintech360 enhance its global reach and service offerings. Nuvei's focus on fintech innovations aligns with its goal to capture opportunities in rapidly growing markets, despite challenges such as low expected return on equity at 18.2%.
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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:AAUC TSX:ATZ and TSX:NVEI.
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