3 German Growth Stocks With Strong Insider Ownership

As the German economy faces a contraction in 2024, marked by plunging factory orders and a challenging economic landscape, investors are keenly observing companies that can navigate these turbulent times. In this context, growth stocks with strong insider ownership often attract attention as they may indicate confidence from those closest to the business, potentially offering resilience amid broader market challenges.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
Stemmer Imaging (XTRA:S9I)	25.1%	23.2%
Multitude (XTRA:E4I)	31%	20.7%
Exasol (XTRA:EXL)	25.3%	117.1%
Deutsche Beteiligungs (XTRA:DBAN)	39.6%	54.1%
adidas (XTRA:ADS)	16.6%	40.5%
pferdewetten.de (XTRA:EMH)	20.6%	97.9%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
R. STAHL (XTRA:RSL2)	37.9%	59.3%
Friedrich Vorwerk Group (XTRA:VH2)	18.8%	24.6%
Redcare Pharmacy (XTRA:RDC)	17.4%	54.3%

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

Let's explore several standout options from the results in 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 €1.96 billion.

Operations: The company's revenue is primarily derived from its Credit Platform (€157.97 million) and Insurance Platform (€66.89 million) segments.

Insider Ownership: 33.5%

Earnings Growth Forecast: 34% p.a.

Hypoport SE, recently added to Germany's MDAX Index, showcases strong growth potential with its revenue forecasted to grow at 12.5% annually and earnings expected to increase by 34% per year, outpacing the German market. The company has turned profitable this year, reporting a net income of €5.44 million for the first half of 2024 compared to a loss previously. Despite high share price volatility and low return on equity forecasts, insider ownership remains stable without substantial recent trading activity.

• Navigate through the intricacies of Hypoport with our comprehensive analyst estimates report here.
• Our valuation report here indicates Hypoport may be overvalued.

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 €2.96 billion.

Operations: The company's revenue is divided into two main segments: DACH, generating €1.74 billion, and International, contributing €391 million.

Insider Ownership: 17.4%

Earnings Growth Forecast: 54.3% p.a.

Redcare Pharmacy is poised for significant growth, with revenue expected to increase by 17.5% annually, outpacing the broader German market. Despite a low forecasted return on equity of 14.1%, the company is set to become profitable within three years, surpassing average market growth rates. Recent insider activity shows more buying than selling in the past three months. The company raised its sales guidance for 2024 to between €2.35 billion and €2.5 billion, indicating robust performance expectations despite past shareholder dilution and recent losses.

• Click here and access our complete growth analysis report to understand the dynamics of Redcare Pharmacy.
• The analysis detailed in our Redcare Pharmacy valuation report hints at an inflated 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 €7.81 billion.

Operations: The company's revenue segments include a Segment Adjustment of €10.49 billion, excluding reconciliation amounts.

Insider Ownership: 10.4%

Earnings Growth Forecast: 24.4% p.a.

Zalando's earnings have surged by 84.3% over the past year, with forecasts suggesting a 24.4% annual growth rate, surpassing the German market average of 19.9%. Despite trading at a significant discount to its estimated fair value, its Return on Equity is projected to be modest at 12.8% in three years. Recent executive changes include CFO Dr. Sandra Dembeck's departure by February 2025, while Q2 sales rose to €2.64 billion from €2.56 billion year-on-year, reflecting solid performance momentum.

• Unlock comprehensive insights into our analysis of Zalando stock in this growth report.
• Our valuation report unveils the possibility Zalando's shares may be trading at a premium.

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Want To Explore Some Alternatives?

• 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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