Stock Analysis

Top German Growth Stocks With High Insider Ownership August 2024

XTRA:HYQ
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As the European markets show signs of optimism with major indices like Germany’s DAX rising by 1.70%, investors are increasingly looking for growth opportunities amid potential interest rate cuts by central banks. In this environment, stocks with high insider ownership can be particularly appealing, as they often indicate strong confidence from those closest to the company's operations and future prospects.

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)25.8%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%20.1%
Beyond Frames Entertainment (DB:8WP)10.8%112.2%
Redcare Pharmacy (XTRA:RDC)17.7%50.1%
elumeo (XTRA:ELB)25.8%120.2%

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

Let's take a closer look at a couple of our picks from the screened companies.

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 €1.76 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%

Earnings Growth Forecast: 35% p.a.

Hypoport SE, a growth company with high insider ownership in Germany, reported strong earnings for Q2 2024 with sales rising to €110.62 million and net income reaching €2.4 million. The company became profitable this year and is expected to grow earnings by 35% annually over the next three years, outpacing the German market's forecasted growth of 19.8%. However, its share price has been highly volatile recently and it has low forecasted return on equity at 10.3%.

XTRA:HYQ Earnings and Revenue Growth as at Aug 2024
XTRA:HYQ Earnings and Revenue Growth as at Aug 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 €566.53 million.

Operations: Verve Group SE's revenue segments include €51.53 million from Demand Side Platforms (DSP) and €318.35 million from Supply Side Platforms (SSP).

Insider Ownership: 25.1%

Earnings Growth Forecast: 20.5% p.a.

Verve Group SE has shown promising signs as a growth company with high insider ownership in Germany. The firm recently raised its earnings guidance for 2024 to €400 million - €420 million and appointed Alex Stil as Chief Commercial Officer to drive demand-side business expansion. Verve's revenue is forecasted to grow at 12.9% annually, outpacing the German market, while earnings are expected to grow significantly at 20.52% per year.

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

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products and has a market cap of €6.39 billion.

Operations: Revenue Segments (in millions of €): {Reconciliation: -275, Segment Adjustment: 10490.80} Zalando SE generates revenue primarily from its online platform for fashion and lifestyle products, amounting to €10.49 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 24.6% p.a.

Zalando SE's recent earnings report highlights strong growth, with Q2 2024 sales at €2.64 billion and net income rising to €95.7 million from €56.6 million a year ago. The company's earnings are forecasted to grow significantly at 24.63% per year, outpacing the German market average of 19.8%. Despite slower revenue growth (5.6% annually), Zalando is trading well below its estimated fair value, making it an attractive prospect for growth-focused investors in Germany.

XTRA:ZAL Earnings and Revenue Growth as at Aug 2024
XTRA:ZAL Earnings and Revenue Growth as at Aug 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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