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Over the past week, the Canadian market has declined by 2.5%. Despite this short-term dip, the market has risen by 9.5% over the past year, and earnings are projected to grow by 15% annually in the coming years. In this context, growth companies with substantial insider ownership can be particularly noteworthy, as high insider ownership often reflects strong confidence from those closely involved with the company. Here are three TSX-listed growth companies that stand out for their high insider ownership and impressive earnings growth.
Stingray Group (TSX:RAY.A)
Stingray Group Inc., a global player in the music, media, and technology sectors, holds a market capitalization of CA$562.03 million. The company operates through two main segments: Radio, contributing CA$129.37 million to its revenue, and Broadcasting and Commercial Music, which adds CA$216.06 million. With insider ownership at 25.6%, Stingray recently broadened its reach by launching multiple FAST channels on The Roku Channel in the US and Canada. Although the company reported a net loss of CAD 13.74 million for the fiscal year ending March 31, 2024, insiders have notably increased their holdings in the past three months. Analysts project significant growth, with earnings anticipated to rise at an annual rate of 63.24%.
Savaria (TSX:SIS)
Savaria Corporation, specializing in accessibility solutions for the elderly and physically challenged, has a market cap of CA$1.37 billion. The company's revenue is derived from Patient Care, contributing CA$183.82 million, and Segment Adjustment, which accounts for CA$650.96 million. Insider ownership stands at 19.6%. Savaria has shown consistent earnings growth, reporting CAD 11.05 million in net income for Q1 2024, up from CAD 6.04 million the previous year. The company also offers a monthly dividend and anticipates revenue to approach CA$1 billion by 2025. Despite some recent insider selling and historical shareholder dilution, analysts forecast earnings growth at an annual rate of 24.87%.
Vitalhub (TSX:VHI)
Vitalhub Corp., a provider of technology solutions for health and human service sectors, has a market cap of CA$407.84 million. The company generates revenue through its Healthcare Software segment, which brings in CA$55.17 million. Insider ownership is at 15.1%. Vitalhub has demonstrated strong growth potential, with Q1 2024 revenue reaching CAD 15.26 million, an increase from CAD 12.6 million the previous year. The company's net income rose to CAD 1.32 million from CAD 0.16 million. Despite past shareholder dilution, Vitalhub's earnings are projected to grow at an annual rate of 39.6%, surpassing the Canadian market's average growth rate of 15.2%.
These companies, with their significant insider ownership and strong earnings growth forecasts, highlight promising opportunities in the current market environment.
