3 German Growth Stocks Insiders Are Investing In With Up To 35% Earnings Growth

As the European economy shows signs of resilience with Germany's DAX index gaining 1.70% amid growing hopes for interest rate cuts, investors are increasingly focusing on growth opportunities within the region. In this environment, stocks with high insider ownership often signal strong confidence from those closest to the company's operations and future prospects, making them particularly appealing in a market poised for potential policy shifts.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	70.6%
Stemmer Imaging (XTRA:S9I)	25.8%	23.2%
Deutsche Beteiligungs (XTRA:DBAN)	39.4%	63.5%
Exasol (XTRA:EXL)	25.3%	117.1%
NAGA Group (XTRA:N4G)	14.1%	78.3%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Stratec (XTRA:SBS)	30.9%	20.1%
Friedrich Vorwerk Group (XTRA:VH2)	18%	23.3%
Beyond Frames Entertainment (DB:8WP)	10.8%	112.2%
elumeo (XTRA:ELB)	25.8%	120.2%

Click here to see the full list of 22 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

Hypoport (XTRA:HYQ)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Hypoport SE develops and markets technology platforms for the financial services, property, and insurance industries in Germany, with a market cap of €1.76 billion.

Operations: The company's revenue segments include €157.97 million from its Credit Platform, €66.89 million from its Insurance Platform, and €175.87 million from Segment Adjustment.

Insider Ownership: 35%

Earnings Growth Forecast: 35% p.a.

Hypoport SE has shown significant earnings growth, reporting a net income of €2.4 million for Q2 2024 compared to a net loss last year. Revenue increased to €110.62 million from €85.29 million in the same period. Analysts forecast annual earnings growth of 35%, outpacing the German market's 19.8%. Despite high insider ownership and substantial revenue growth, the company's share price has been highly volatile recently, and its return on equity is projected to remain low at 10.3%.

• Click here and access our complete growth analysis report to understand the dynamics of Hypoport.
• According our valuation report, there's an indication that Hypoport's share price might be on the expensive side.

Verve Group (XTRA:M8G)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Verve Group SE operates a software platform for the automated buying and selling of digital advertising space in North America and Europe, with a market cap of €566.53 million.

Operations: Revenue segments for Verve Group SE include Demand Side Platforms (DSP) at €51.53 million and Supply Side Platforms (SSP) at €318.35 million.

Insider Ownership: 25.1%

Earnings Growth Forecast: 20.5% p.a.

Verve Group SE, with substantial insider ownership, is forecast to grow its revenue by 12.9% annually and earnings by 20.5%, outpacing the German market's growth rates. Despite recent shareholder dilution and high share price volatility, insiders have significantly increased their holdings over the past three months. The company raised its 2024 revenue guidance to €400-€420 million and recently appointed Alex Stil as Chief Commercial Officer to drive demand-side expansion following the Jun Group acquisition.

• Delve into the full analysis future growth report here for a deeper understanding of Verve Group.
• The analysis detailed in our Verve Group valuation report hints at an deflated share price compared to its estimated value.

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products with a market cap of approximately €6.39 billion.

Operations: Zalando SE generates revenue from its online platform for fashion and lifestyle products, amounting to €10.49 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 24.6% p.a.

Zalando, with high insider ownership, is expected to see significant earnings growth of 24.6% annually over the next three years, outpacing the German market's 19.8%. Its revenue growth forecast of 5.6% per year slightly exceeds the market average but remains below high-growth benchmarks. Recent earnings reports show a strong performance with Q2 sales at €2.64 billion and net income rising to €95.7 million from €56.6 million a year ago, indicating robust operational momentum despite lower forecasted return on equity (12.8%).

• Get an in-depth perspective on Zalando's performance by reading our analyst estimates report here.
• Our expertly prepared valuation report Zalando implies its share price may be too high.

Where To Now?

• Investigate our full lineup of 22 Fast Growing German Companies With High Insider Ownership right here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com