Stock Analysis

3 German Growth Stocks With Insider Ownership Up To 35%

XTRA:HYQ
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As the German market faces renewed concerns about global economic growth, highlighted by a 3.20% decline in the DAX, investors are increasingly looking for resilient opportunities. In such an environment, growth companies with high insider ownership can offer a compelling investment case due to their potential for strong performance and alignment of interests between shareholders and management. When evaluating stocks in this context, it is essential to consider those that demonstrate robust growth prospects while also benefiting from significant insider ownership. This combination can indicate confidence from those closest to the company's operations and strategic direction.

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)25.1%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%
Beyond Frames Entertainment (DB:8WP)10.8%112.2%
Redcare Pharmacy (XTRA:RDC)17.7%50.1%
elumeo (XTRA:ELB)25.8%120.2%
Your Family Entertainment (DB:RTV)17.5%116.8%

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

Underneath we present a selection of stocks filtered out by our screen.

Brockhaus Technologies (XTRA:BKHT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €295.67 million.

Operations: Brockhaus Technologies AG generates revenue primarily from its Security Technologies segment (€37.03 million) and Financial Technologies segment (€174.59 million).

Insider Ownership: 26.6%

Brockhaus Technologies AG, with significant insider ownership, is expected to become profitable within three years and has a forecasted annual earnings growth of 93%. Despite trading at 79.1% below its estimated fair value, the company reported a net loss of €6.65 million for H1 2024. Revenue grew from €84.64 million to €109.49 million year-over-year, and it maintains revenue guidance between €220 million and €240 million for 2024.

XTRA:BKHT Earnings and Revenue Growth as at Sep 2024
XTRA:BKHT Earnings and Revenue Growth as at Sep 2024

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 generates revenue through its Credit Platform (€157.97 million) and Insurance Platform (€66.89 million).

Insider Ownership: 35%

Hypoport SE, characterized by high insider ownership, recently became profitable with net income of €5.44 million for the first half of 2024 compared to a loss last year. Despite a highly volatile share price, its earnings are forecasted to grow 35% annually, outpacing the German market. Revenue is expected to increase at 12.5% per year but slower than 20%. The company reported Q2 sales of €110.62 million and net income of €2.4 million.

XTRA:HYQ Earnings and Revenue Growth as at Sep 2024
XTRA:HYQ Earnings and Revenue Growth as at Sep 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 €579.57 million.

Operations: Verve Group SE generates revenue primarily from its Supply Side Platforms (SSP) at €341.35 million and Demand Side Platforms (DSP) at €57.59 million.

Insider Ownership: 25.1%

Verve Group SE, a growth company with high insider ownership, reported Q2 2024 sales of €102.82 million and net income of €6.26 million, showing significant year-over-year growth. The company increased its 2024 revenue guidance to €400-€420 million and completed a €66.63 million fixed-income offering to reduce financing costs. Despite recent shareholder dilution and highly volatile share prices, Verve's earnings are forecasted to grow significantly at 20.5% per year over the next three years.

XTRA:M8G Ownership Breakdown as at Sep 2024
XTRA:M8G Ownership Breakdown as at Sep 2024

Summing It All Up

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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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