3 German Growth Stocks Insiders Own With Up To 24% Growth

The German market has shown resilience, with the DAX gaining 0.35% amid mixed performances in major European indices. Despite global economic uncertainties and fluctuating consumer demand, Germany's industrial output has exceeded expectations, providing a stable backdrop for growth stocks. In this environment, companies with high insider ownership often signal confidence from those who know the business best. Here are three German growth stocks that insiders own significantly and have demonstrated potential for up to 24% growth.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings 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%	54.1%
Exasol (XTRA:EXL)	25.3%	115.1%
NAGA Group (XTRA:N4G)	14.1%	78.3%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Redcare Pharmacy (XTRA:RDC)	17.7%	50.1%
elumeo (XTRA:ELB)	25.8%	99.1%
Friedrich Vorwerk Group (XTRA:VH2)	18%	30.5%

Click here to see the full list of 21 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

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 €513.42 million.

Operations: The company's revenue segments include Demand Side Platforms (DSP) generating €51.53 million and Supply Side Platforms (SSP) contributing €318.35 million.

Insider Ownership: 25.1%

Earnings Growth Forecast: 20.5% p.a.

Verve Group SE, with substantial insider ownership, has seen significant growth and strategic moves recently. The company raised its 2024 earnings guidance to €400 million - €420 million and appointed Alex Stil as Chief Commercial Officer to drive expansion. Despite high volatility in share price, insiders have been buying more shares than selling in the past three months. Verve's revenue is forecasted to grow faster than the German market, though interest payments are not well covered by earnings.

• Unlock comprehensive insights into our analysis of Verve Group stock in this growth report.
• The analysis detailed in our Verve Group valuation report hints at an deflated share price compared to its estimated value.

Stratec (XTRA:SBS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stratec SE, with a market cap of €510.55 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 are derived from automation and instrumentation solutions in the fields of in-vitro diagnostics and life sciences, serving Germany, the European Union, and international markets.

Insider Ownership: 30.9%

Earnings Growth Forecast: 20.3% p.a.

Stratec SE, known for its high insider ownership, is forecasted to grow its revenue at 7.9% annually, outpacing the German market's 5.3%. Recent earnings results showed a notable improvement with second-quarter sales of €68.21 million and net income rising to €3.48 million from €1.05 million year-over-year. Despite trading significantly below estimated fair value and expected annual profit growth of 20.32%, Stratec's return on equity remains low at a forecasted 10.8%.

• Delve into the full analysis future growth report here for a deeper understanding of Stratec.
• Our expertly prepared valuation report Stratec implies its share price may be too high.

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 €5.75 billion.

Operations: Zalando SE generates revenue of €10.49 billion from its online platform for fashion and lifestyle products.

Insider Ownership: 10.4%

Earnings Growth Forecast: 24.6% p.a.

Zalando, with substantial insider ownership, reported strong earnings for Q2 2024, showing sales of €2.64 billion and net income of €95.7 million, up from €56.6 million the previous year. Despite trading at 60.9% below estimated fair value and having forecasted annual earnings growth of 24.64%, its return on equity is expected to be low at 12.8% in three years. Revenue is projected to grow at 5.6% annually, slightly above the German market's rate.

• Click here and access our complete growth analysis report to understand the dynamics of Zalando.
• Upon reviewing our latest valuation report, Zalando's share price might be too optimistic.

Turning Ideas Into Actions

• Click this link to deep-dive into the 21 companies within our Fast Growing German Companies With High Insider Ownership screener.
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Ready For A Different Approach?

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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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