Stock Analysis

3 German Growth Stocks With Insider Ownership Between 18% And 30%

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The German market has shown resilience with the DAX gaining 0.35%, despite broader economic concerns and mixed signals from the Eurozone. As investors navigate these uncertain times, stocks with strong insider ownership often signal confidence in a company's future prospects. In this article, we will explore three German growth stocks where insiders hold between 18% and 30% of shares, offering a closer look at companies that are not only growing but also have substantial insider commitment.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
pferdewetten.de (XTRA:EMH)26.8%75.4%
YOC (XTRA:YOC)24.8%21.8%
Stemmer Imaging (XTRA:S9I)26.1%23.2%
Deutsche Beteiligungs (XTRA:DBAN)39.4%63.5%
Exasol (XTRA:EXL)25.3%115.1%
NAGA Group (XTRA:N4G)14.1%78.3%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
Stratec (XTRA:SBS)30.9%20.3%
Redcare Pharmacy (XTRA:RDC)17.7%50.1%
Your Family Entertainment (DB:RTV)17.5%116.8%

Click here to see the full list of 20 stocks from our Fast Growing German Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

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 €515.28 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%

Verve Group SE, a growth company with high insider ownership in Germany, has shown strong performance and strategic moves. Recent developments include raising earnings guidance to €400 million - €420 million for 2024 and appointing Alex Stil as Chief Commercial Officer to lead demand-side business expansion. The company's earnings are forecasted to grow significantly over the next three years. Additionally, Verve successfully placed a subsequent bond issue of €65 million, reducing financing costs and improving credit ratios post-Jun Group acquisition.

XTRA:M8G Ownership Breakdown as at Aug 2024

Stratec (XTRA:SBS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stratec SE, with a market cap of €525.74 million, designs and manufactures automation and instrumentation solutions for in-vitro diagnostics and life sciences in Germany, the European Union, and internationally.

Operations: The company's revenue segments include designing and manufacturing automation and instrumentation solutions for in-vitro diagnostics and life sciences across Germany, the European Union, and internationally.

Insider Ownership: 30.9%

Stratec SE, known for its high insider ownership, has demonstrated solid growth prospects. Despite a forecasted revenue growth of 7.9% per year, which is slower than 20% annually but faster than the German market's 5.3%, Stratec’s earnings are expected to grow significantly at 20.32% per year. Recent earnings results showed an increase in net income to €3.48 million for Q2 2024 from €1.05 million a year ago, reflecting strong operational performance despite slightly lower six-month sales (€119.08 million).

XTRA:SBS Earnings and Revenue Growth as at Aug 2024

Friedrich Vorwerk Group (XTRA:VH2)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Friedrich Vorwerk Group SE offers solutions for energy transformation and transportation across Germany and Europe, with a market cap of €426 million.

Operations: The company's revenue segments include Electricity (€72.07 million), Natural Gas (€157.60 million), Clean Hydrogen (€28.59 million), and Adjacent Opportunities (€118.73 million).

Insider Ownership: 18%

Friedrich Vorwerk Group, with substantial insider ownership, exhibits strong growth potential. Earnings are forecast to grow significantly at 31.64% per year, outpacing the German market's 19.7%. Although revenue growth is slower at 9% annually, it still exceeds the market average of 5.3%. Recent H1 2024 earnings call indicated robust performance despite a moderate revenue outlook, underscoring its solid profit trajectory and strategic insider confidence in future growth.

XTRA:VH2 Ownership Breakdown as at Aug 2024

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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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