The German market has recently reached new heights, with the DAX climbing 1.47% as inflation trends support potential interest rate cuts by the European Central Bank. Despite some pessimism among German companies, growth stocks continue to capture investor interest, particularly those with significant insider ownership. In this environment, stocks with high insider ownership can be appealing as they often indicate strong confidence from those closest to the company's operations and future prospects. Here are three German growth stocks that stand out for their substantial insider holdings of up to 26%.
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% |
| R. STAHL (XTRA:RSL2) | 37.9% | 59.3% |
| Friedrich Vorwerk Group (XTRA:VH2) | 18% | 24.6% |
Underneath we present a selection of stocks filtered out by our screen.
adidas (XTRA:ADS)
Simply Wall St Growth Rating: ★★★★★☆
Overview: adidas AG, with a market cap of €41.07 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America.
Operations: The company's revenue segments include €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.
Insider Ownership: 16.6%
adidas AG has shown strong financial performance, with Q2 2024 sales of €5.82 billion and net income rising to €190 million from €84 million a year ago. Earnings per share also improved significantly. The company raised its full-year guidance, expecting revenue growth in the high-single digits and operating profit around €1 billion despite unfavorable currency effects. Insider ownership is substantial, aligning management's interests with shareholders, supporting its status as a growth company in Germany.
- Dive into the specifics of adidas here with our thorough growth forecast report.
- The valuation report we've compiled suggests that adidas' current price could be inflated.
Brockhaus Technologies (XTRA:BKHT)
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €297.76 million.
Operations: The firm's revenue segments include Security Technologies generating €37.03 million and Financial Technologies contributing €174.59 million.
Insider Ownership: 26.6%
Brockhaus Technologies AG reported H1 2024 revenue of €109.49 million, up from €84.64 million a year ago, but experienced a net loss of €6.65 million compared to €0.765 million previously. The company confirmed its 2024 revenue guidance between €220-240 million and expects 2025 revenue between €290-320 million. Despite current losses, forecasts indicate strong annual profit growth and faster-than-market revenue growth, with substantial insider ownership aligning management interests with shareholders.
- Navigate through the intricacies of Brockhaus Technologies with our comprehensive analyst estimates report here.
- The analysis detailed in our Brockhaus Technologies valuation report hints at an deflated share price compared to its estimated value.
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 €594.48 million.
Operations: Verve Group SE generates revenue primarily from its Supply Side Platforms (SSP) at €341.35 million and Demand Side Platforms (DSP) at €57.59 million.
Insider Ownership: 25.1%
Verve Group SE, a growth company with high insider ownership, reported strong Q2 2024 earnings with sales of €102.82 million and net income of €6.26 million, both significantly up from last year. The company has raised its 2024 revenue guidance to €400-420 million and completed a €66.63 million fixed-income offering to reduce financing costs. Despite recent share dilution and high volatility, Verve's earnings are forecasted to grow faster than the German market, supported by substantial insider buying in the past three months.
- Click to explore a detailed breakdown of our findings in Verve Group's earnings growth report.
- The valuation report we've compiled suggests that Verve Group's current price could be quite moderate.
Turning Ideas Into Actions
- Unlock our comprehensive list of 23 Fast Growing German Companies With High Insider Ownership by clicking here.
- Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
- Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Contemplating Other Strategies?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- 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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About XTRA:M8G
Verve Group
Operates a software platform for the automated buying and selling of digital advertising space in North America and Europe.
Undervalued with reasonable growth potential.
