Stock Analysis

3 German Growth Stocks With High Insider Ownership

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As Germany's DAX Index has recently seen a notable uptick, reflecting broader optimism in European markets amid expectations of interest rate cuts by the ECB, investors are increasingly looking for growth opportunities. In this context, companies with high insider ownership can be particularly appealing as they often signal confidence from those closest to the business.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings 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%
Beyond Frames Entertainment (DB:8WP)10.8%112.2%
Friedrich Vorwerk Group (XTRA:VH2)18%20.8%
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 dive into some prime choices out of the 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 €1.77 billion.

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

Insider Ownership: 35%

Hypoport SE has shown robust growth, with recent earnings revealing a significant turnaround from a net loss to a net income of €2.4 million in Q2 2024. Revenue for the quarter rose to €110.62 million from €85.29 million year-on-year. Forecasts indicate that Hypoport's revenue will grow at 12.5% annually, outpacing the German market average of 5.1%. Despite high volatility in its share price, insider ownership remains substantial, aligning management interests with shareholders'.

XTRA:HYQ Ownership Breakdown as at Aug 2024

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 €553.48 million.

Operations: Demand Side Platforms (DSP) generated €51.53 million, while Supply Side Platforms (SSP) contributed €318.35 million in revenue for Verve Group SE.

Insider Ownership: 25.1%

Verve Group SE, recently renamed from MGI - Media and Games Invest SE, has raised its earnings guidance for 2024 to €400 million - €420 million. The company has seen substantial insider buying over the past three months and expects significant annual profit growth of 20.5% over the next three years. Despite high share price volatility and recent shareholder dilution, Verve's strategic leadership changes and successful debt refinancing are poised to enhance its financial position.

XTRA:M8G Ownership Breakdown as at Aug 2024

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 €6.32 billion.

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

Insider Ownership: 10.4%

Zalando SE reported strong earnings for Q2 2024, with net income rising to €95.7 million from €56.6 million a year ago, driven by sales of €2.64 billion. The company's earnings are expected to grow significantly at 24.63% annually over the next three years, outpacing the German market's forecasted growth rate of 19.9%. Despite trading at a significant discount to its estimated fair value, insider ownership remains high without substantial recent insider trading activity.

XTRA:ZAL Ownership Breakdown as at Aug 2024

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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.

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