3 German Growth Stocks With High Insider Ownership

As the European Central Bank's recent rate cut has provided a lift to markets, Germany's DAX index saw a notable rise of 2.17%. In this favorable market environment, growth stocks with high insider ownership can offer unique advantages, particularly in terms of alignment between management and shareholder interests. In today's article, we explore three German growth companies where significant insider ownership could signal strong potential for future performance.

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)	25.2%	23.2%
Deutsche Beteiligungs (XTRA:DBAN)	39.5%	54.1%
Exasol (XTRA:EXL)	25.3%	117.1%
adidas (XTRA:ADS)	16.6%	41.8%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Stratec (XTRA:SBS)	30.9%	20%
R. STAHL (XTRA:RSL2)	37.9%	59.3%
Friedrich Vorwerk Group (XTRA:VH2)	18%	24.6%
Your Family Entertainment (DB:RTV)	17.3%	116.8%

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

Let's review some notable picks from our screened stocks.

adidas (XTRA:ADS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, with a market cap of €39.01 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America.

Operations: The company's revenue segments include €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.

Insider Ownership: 16.6%

adidas's revenue is forecast to grow at 8.3% per year, outpacing the German market but below 20% annually. Its earnings are expected to grow significantly at 41.8% per year, with a high Return on Equity forecast of 31.6%. Recently, adidas reported strong Q2 results with sales of €5.82 billion and net income of €190 million, leading to revised full-year guidance for higher revenues and operating profit despite unfavorable currency effects impacting profitability in 2024.

• Click here to discover the nuances of adidas with our detailed analytical future growth report.
• According our valuation report, there's an indication that adidas' share price might be on the cheaper side.

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 €1.81 billion.

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

Insider Ownership: 35%

Hypoport SE, a growth company with high insider ownership in Germany, recently reported strong Q2 2024 results, with sales increasing to €110.62 million and net income reaching €2.4 million from a previous net loss. Earnings are forecast to grow significantly at 35% per year, though revenue is expected to grow slower at 12.6% annually. Despite becoming profitable this year, the share price has been highly volatile over the past three months.

• Get an in-depth perspective on Hypoport's performance by reading our analyst estimates report here.
• In light of our recent valuation report, it seems possible that Hypoport is trading beyond 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 €6.05 billion.

Operations: The company's revenue segments amount to €10.49 billion.

Insider Ownership: 10.4%

Zalando's earnings are forecast to grow 25.1% annually, outpacing the German market's 20%. Recent Q2 results showed sales of €2.64 billion and net income of €95.7 million, up from €56.6 million a year ago. Despite trading at 58.9% below its estimated fair value, revenue growth is modest at 5.5% annually, slightly above the market rate but slower than high-growth benchmarks. CFO Dr. Sandra Dembeck will depart in February 2025 for new opportunities.

• Dive into the specifics of Zalando here with our thorough growth forecast report.
• According our valuation report, there's an indication that Zalando's share price might be on the expensive side.

Taking Advantage

• Gain an insight into the universe of 22 Fast Growing German Companies With High Insider Ownership by clicking here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
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Seeking Other Investments?

• 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.

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