3 Top German Growth Stocks With Up To 35% Insider Ownership

Despite recent declines in major European indices, including Germany's DAX, the German market continues to offer compelling opportunities for investors focused on long-term growth. In this environment, stocks with high insider ownership can be particularly attractive as they often indicate strong confidence from those closest to the company's operations.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings 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%	52.1%
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.

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

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 €1.78 billion.

Operations: The company's revenue segments include a Credit Platform generating €157.97 million, an Insurance Platform contributing €66.89 million, and Segment Adjustment amounting to €175.87 million.

Insider Ownership: 35%

Hypoport SE has demonstrated strong earnings growth, becoming profitable this year with a net income of €5.44 million for the first half of 2024, compared to a net loss last year. Analysts forecast significant annual earnings growth of 35% over the next three years, outpacing the German market's average. Despite high revenue growth expectations (12.5%), its share price has been highly volatile recently and Return on Equity is projected to remain low at 10.3%.

• Delve into the full analysis future growth report here for a deeper understanding of Hypoport.
• 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 €614.98 million.

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

Insider Ownership: 25.1%

Verve Group SE, a growth company with high insider ownership, has shown substantial revenue and earnings growth. For the second quarter of 2024, it reported sales of €102.82 million and net income of €6.26 million, both significantly higher than the previous year. The company recently raised its annual revenue guidance to €400-420 million and completed a fixed-income offering to reduce financing costs. Despite some shareholder dilution over the past year, insider buying remains strong.

• Unlock comprehensive insights into our analysis of Verve Group stock in this growth report.
• Upon reviewing our latest valuation report, Verve Group's share price might be too pessimistic.

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 €2.42 billion.

Operations: The company generates revenue of €1.74 billion from the DACH region and €391 million from its International segment.

Insider Ownership: 17.7%

Redcare Pharmacy's revenue is projected to grow 17.1% annually, outpacing the German market's 5.5%. Despite a net loss reduction to €12.07 million for H1 2024 from €14.78 million the previous year, earnings are expected to grow by 52.09% per year and achieve profitability within three years. The stock trades at a significant discount to its estimated fair value but has experienced high volatility and substantial insider selling recently, with no notable insider buying in the past quarter.

• Dive into the specifics of Redcare Pharmacy here with our thorough growth forecast report.
• Our valuation report here indicates Redcare Pharmacy may be overvalued.

Where To Now?

• Click here to access our complete index of 22 Fast Growing German Companies With High Insider Ownership.
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Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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