In recent weeks, the German DAX index has shown robust performance, climbing 3.38% amid growing hopes for interest rate cuts in Europe. This positive market sentiment sets a favorable backdrop for growth stocks, particularly those with high insider ownership, which often indicates strong confidence from company executives. In this article, we will explore three German growth stocks that boast up to 35% insider ownership—an attribute that can be a compelling indicator of potential long-term value and alignment 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% | 75.4% |
| Stemmer Imaging (XTRA:S9I) | 26.1% | 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% | 20.3% |
| Friedrich Vorwerk Group (XTRA:VH2) | 18% | 23.3% |
| Redcare Pharmacy (XTRA:RDC) | 17.7% | 50.1% |
| Your Family Entertainment (DB:RTV) | 17.5% | 116.8% |
Let's review some notable picks from our screened stocks.
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 €1.67 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, a German growth company with high insider ownership, has shown strong recent performance. For Q2 2024, it reported sales of €110.62 million and net income of €2.4 million, reversing a previous net loss. Revenue is projected to grow at 12.5% annually, outpacing the German market's 5.2%. Despite high share price volatility and low forecasted Return on Equity (10.3%), earnings are expected to grow significantly at 35% per year over the next three years.
- Dive into the specifics of Hypoport here with our thorough growth forecast report.
- According our valuation report, there's an indication that Hypoport's share price might be on the expensive side.
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 €544.16 million.
Operations: Verve Group SE generates revenue from Demand Side Platforms (DSP) amounting to €51.53 million and Supply Side Platforms (SSP) totaling €318.35 million.
Insider Ownership: 25.1%
Verve Group SE, a German growth company with high insider ownership, recently raised its 2024 revenue guidance to €400 million - €420 million. Earnings are forecasted to grow at 20.52% annually, outpacing the German market's 19.8%. The company became profitable this year and has seen substantial insider buying over the past three months. Despite a highly volatile share price and low future Return on Equity (12.9%), it trades significantly below estimated fair value and is expanding its demand-side business following the Jun Group acquisition.
- Click here to discover the nuances of Verve Group with our detailed analytical future growth report.
- Our valuation report here indicates Verve Group may be undervalued.
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 €6.23 billion.
Operations: The company's revenue segments include Reconciliation at -€0.28 billion and Segment Adjustment at €10.49 billion.
Insider Ownership: 10.4%
Zalando SE's earnings are forecasted to grow at 24.63% per year, outpacing the German market's 19.8%. Despite revenue growth projections of only 5.6% annually, the company reported strong second-quarter results with sales of €2.64 billion and net income of €95.7 million, up from €56.6 million a year ago. Trading at 58% below estimated fair value and with significant insider ownership, Zalando shows promise but faces modest revenue growth challenges ahead.
- Delve into the full analysis future growth report here for a deeper understanding of Zalando.
- Upon reviewing our latest valuation report, Zalando's share price might be too optimistic.
Key Takeaways
- Navigate through the entire inventory of 21 Fast Growing German Companies With High Insider Ownership 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?
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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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About XTRA:M8G
Verve Group
Operates a software platform for the automated buying and selling of digital advertising space in North America and Europe.
Undervalued with reasonable growth potential.
