3 German Growth Stocks With Insider Ownership Expecting Up To 51% Earnings Growth

As the German DAX index eked out a modest gain of 0.11% amidst cautious investor sentiment following the U.S. Federal Reserve's interest rate cut, attention is turning towards growth stocks with high insider ownership as potential opportunities in this market environment. Companies with significant insider ownership often indicate strong confidence from those closest to the business, making them intriguing options for investors looking for robust earnings growth and alignment of interests between management and shareholders.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
pferdewetten.de (XTRA:EMH)	26.8%	98.3%
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%	42.1%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Beyond Frames Entertainment (DB:8WP)	10.8%	112.2%
Redcare Pharmacy (XTRA:RDC)	17.4%	51.8%
elumeo (XTRA:ELB)	25.8%	120.2%
Your Family Entertainment (DB:RTV)	17.3%	116.8%

Click here to see the full list of 20 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

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 €1.95 billion.

Operations: The company's revenue segments are: Credit Platform (€157.97M), Insurance Platform (€66.89M), and Segment Adjustment (€175.87M).

Insider Ownership: 35%

Earnings Growth Forecast: 34% p.a.

Hypoport SE, recently added to the Germany MDAX Index, has shown significant earnings growth, with net income rising to €2.4 million in Q2 2024 from a net loss of €2.61 million a year ago. Revenue is forecast to grow at 12.5% per year, outpacing the German market's 5.5%. However, its return on equity is expected to remain low at 9.7%, and it has experienced high share price volatility over the past three months.

• Click to explore a detailed breakdown of our findings in Hypoport's earnings growth report.
• In light of our recent valuation report, it seems possible that Hypoport is trading beyond its estimated value.

Redcare Pharmacy (XTRA:RDC)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.51 billion.

Operations: The company generates revenue primarily from two segments: €1.74 billion from the DACH region and €391 million internationally.

Insider Ownership: 17.4%

Earnings Growth Forecast: 51.8% p.a.

Redcare Pharmacy, a growth company with high insider ownership in Germany, is expected to become profitable within three years, with annual earnings forecasted to grow by 51.83%. Despite significant insider selling over the past three months and a volatile share price, the company's revenue is projected to grow at 17.1% per year, faster than the German market's average. Recent presentations at major investment conferences highlight ongoing investor interest and engagement.

• Take a closer look at Redcare Pharmacy's potential here in our earnings growth report.
• Our valuation report unveils the possibility Redcare Pharmacy's shares may be trading at a premium.

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products and has a market cap of €7.27 billion.

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

Insider Ownership: 10.4%

Earnings Growth Forecast: 25.2% p.a.

Zalando's recent earnings report showed significant growth, with second-quarter net income rising to €95.7 million from €56.6 million a year ago. The company's revenue is forecast to grow at 5.6% annually, slightly above the German market average of 5.5%. Despite the CFO's upcoming departure in February 2025, Zalando's earnings are expected to grow significantly at 25.2% per year, reflecting strong future potential amidst high insider ownership and ongoing investor engagement at key conferences.

• Dive into the specifics of Zalando here with our thorough growth forecast report.
• Our comprehensive valuation report raises the possibility that Zalando is priced higher than what may be justified by its financials.

Next Steps

• Discover the full array of 20 Fast Growing German Companies With High Insider Ownership right here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Looking For Alternative Opportunities?

• 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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