High Insider Ownership: 3 TSX Growth Stocks To Consider

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Post on Oct 21, 2024

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High Insider Ownership: 3 TSX Growth Stocks To Consider

Want to invest in companies that are truly committed to their success? Look no further than insider ownership, a metric that shows how much skin a company's executives have in the game. When insiders are heavily invested, it's a strong signal they believe in the company's future and are betting on its growth.

Today, we're diving into three TSX growth stocks with high insider ownership that might be worth adding to your portfolio.

Why High Insider Ownership Matters

Think of it like this: Would you invest in a company where the CEO barely owns any stock? Probably not. Why would you expect them to be as dedicated to maximizing shareholder value compared to someone with a substantial chunk of their own money on the line?

High insider ownership often translates to:

• Strong alignment between management and shareholders: Insiders have a vested interest in the company's success.
• Increased accountability: Insiders are more likely to be held accountable for their decisions since they're directly impacted by the company's performance.
• Potential for better long-term performance: A deep belief in the company's future can lead to more strategic decisions, potentially driving growth.

3 TSX Growth Stocks With High Insider Ownership

Remember, this is not financial advice. Do your own research before investing.

1. Nuvei Corporation (NVEI): This payments platform is a powerhouse, connecting businesses and consumers across the globe. With a whopping 10% of the company's stock held by insiders, they're clearly putting their money where their mouths are.

NVEI's growth potential is huge. As e-commerce continues to boom, Nuvei is well-positioned to capitalize on the growing demand for online payment solutions. Their focus on innovation is another big draw, with a constant stream of new products and features.

Insider ownership combined with their rapid growth makes this a stock to keep on your radar.

2. Docebo Inc. (DCBO): This cloud-based learning platform is revolutionizing how businesses train their employees. With insiders holding nearly 15% of the shares, they're riding the wave of the rapidly growing e-learning market.

DCBO's platform is highly scalable, attracting large companies and organizations. They've also been aggressively acquiring strategic assets, giving them a leg up in a competitive market. The potential for rapid growth is huge, especially as companies invest more heavily in online training.

This combination of strong insider ownership and a compelling growth story makes DCBO a potential winner.

3. Shopify (SHOP): This e-commerce platform is already a household name, empowering businesses of all sizes to sell online. While their insider ownership isn't as high as the others, at around 5%, it's still notable.

SHOP's success is undeniable. They've become synonymous with online selling, continuously innovating with new features and functionalities. The global e-commerce market is exploding, and Shopify is perfectly positioned to capitalize on this trend.

Even with a relatively lower insider ownership, SHOP's proven track record and continued growth potential make it a solid option for investors seeking long-term gains.

Conclusion

High insider ownership doesn't guarantee success, but it's a strong indicator of potential. By considering companies with a significant amount of insider stock, you're aligning yourself with management that's dedicated to driving long-term growth.

Don't just rely on this metric alone. Do your due diligence by analyzing the company's financials, competitive landscape, and overall market potential. Remember, investing always involves risks, but focusing on companies with high insider ownership can add another layer of confidence to your portfolio.