Stock Analysis

3 Top German Growth Stocks With High Insider Ownership

XTRA:M8G
Source: Shutterstock

As global economic concerns weigh on markets, the German DAX has also seen a decline amid fears of slowing growth. Despite this challenging environment, certain growth companies with high insider ownership can offer attractive opportunities due to their potential for robust performance. In this article, we will explore three top German growth stocks that stand out not only for their impressive performance but also for the significant stakes held by insiders.

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%
Stratec (XTRA:SBS)30.9%20.1%
Beyond Frames Entertainment (DB:8WP)10.8%112.2%
Redcare Pharmacy (XTRA:RDC)17.7%50.1%
Friedrich Vorwerk Group (XTRA:VH2)18%24.6%

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.

Brockhaus Technologies (XTRA:BKHT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €292.53 million.

Operations: Brockhaus Technologies 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, a growth company with high insider ownership in Germany, recently confirmed its revenue guidance for 2024 and 2025, projecting €220-€240 million and €290-€320 million respectively. Despite reporting a net loss of €6.65 million for H1 2024, the company's sales increased to €109.43 million from €84.59 million year-over-year. Analysts forecast Brockhaus’s revenue to grow at 16.8% annually and expect it to become profitable within three years, although its Return on Equity is projected to be low at 5.3%.

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 €1.73 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, with high insider ownership, reported strong Q2 2024 results: sales increased to €110.62 million from €85.29 million year-over-year, and net income reached €2.4 million compared to a net loss of €2.61 million previously. Earnings are forecast to grow significantly at 35% annually, outpacing the German market's growth rate of 19.8%. However, revenue growth is expected to be moderate at 12.5% per year and share price volatility remains high.

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 €611.25 million.

Operations: Verve Group SE generates revenue from Demand Side Platforms (DSP) amounting to €57.59 million and Supply Side Platforms (SSP) totaling €341.35 million.

Insider Ownership: 25.1%

Verve Group SE, a growth company with high insider ownership, reported strong Q2 2024 results with sales rising to €102.82 million from €82.56 million year-over-year and net income increasing to €6.26 million from €1.74 million. The company raised its 2024 revenue guidance to between €400 million and €420 million and completed a fixed-income offering of €66.63 million, reducing financing costs significantly. Despite recent shareholder dilution, no substantial insider selling occurred in the past three months.

XTRA:M8G Earnings and Revenue Growth as at Sep 2024
XTRA:M8G Earnings and Revenue Growth as at Sep 2024

Where To Now?

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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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