3 European Growth Stocks With Insider Ownership Up To 35%

Amid renewed uncertainty about U.S. trade policy and escalating geopolitical tensions in the Middle East, European markets have seen a decline, with the pan-European STOXX Europe 600 Index ending 1.57% lower recently. In this challenging environment, growth companies with high insider ownership can be particularly appealing to investors seeking stability and potential resilience, as insider stakes often align management's interests with those of shareholders and indicate confidence in the company's future prospects.

Top 10 Growth Companies With High Insider Ownership In Europe

Click here to see the full list of 211 stocks from our Fast Growing European Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Moreld (OB:MORLD)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Moreld AS offers integrated solutions for the energy, marine, and industrial sectors both in Norway and internationally, with a market capitalization of NOK2.55 billion.

Operations: The company's revenue is primarily derived from Moreld Apply, contributing NOK4.17 billion, and Global Maritime, which adds NOK894.98 million.

Insider Ownership: 30.9%

Moreld, recently restructured as a public limited company, is trading significantly below its estimated fair value. Despite slower revenue growth forecasts compared to the Norwegian market, Moreld's earnings are expected to grow substantially at 76.2% annually. The company's return on equity is projected to be very high in three years, and it is anticipated to become profitable within this period. However, its dividend yield of NOK 0.42 per share may not be sustainable given current earnings coverage concerns.

• Take a closer look at Moreld's potential here in our earnings growth report.
• In light of our recent valuation report, it seems possible that Moreld is trading behind its estimated value.

Arbonia (SWX:ARBN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Arbonia AG supplies interior doors made from wood and glass in Switzerland and internationally, with a market cap of CHF388.24 million.

Operations: The company generates revenue primarily through its Doors segment, including sanitary equipment, which accounts for CHF553.77 million.

Insider Ownership: 28.7%

Arbonia is experiencing substantial growth, with earnings projected to increase significantly at 67.7% annually, outpacing the Swiss market. Despite becoming profitable this year and expecting revenue growth of 7.7% per year, its return on equity is forecasted to be low at 2.3%. Recent AGM decisions include a total dividend distribution of CHF 5.83 per share following a Climate Division sale, alongside board reductions from eight to five members.

• Get an in-depth perspective on Arbonia's performance by reading our analyst estimates report here.
• The valuation report we've compiled suggests that Arbonia's current price could be inflated.

Rieter Holding (SWX:RIEN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rieter Holding AG, with a market cap of CHF336.77 million, supplies systems for manufacturing yarn from staple fibers in spinning mills both in Switzerland and internationally.

Operations: Rieter Holding AG generates revenue through three main segments: Components (CHF303 million), After Sales (CHF186.60 million), and Machines & Systems (CHF424.90 million).

Insider Ownership: 35.1%

Rieter Holding is poised for growth, with earnings expected to rise significantly at 36.5% annually, surpassing the Swiss market's average. Revenue is also forecasted to grow faster than the market at 9.4% per year. However, profit margins have decreased from last year, and interest payments are not well covered by earnings. Despite a volatile share price and an unstable dividend history, analysts anticipate a potential stock price increase of 56.6%. Recent discussions include M&A calls involving OC Oerlikon Corporation AG and Barmag divestment plans.

• Navigate through the intricacies of Rieter Holding with our comprehensive analyst estimates report here.
• Upon reviewing our latest valuation report, Rieter Holding's share price might be too optimistic.

Taking Advantage

• Delve into our full catalog of 211 Fast Growing European Companies With High Insider Ownership here.
• Seeking Other Investments? Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

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.

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