Stock Analysis

German Growth Stocks With High Insider Ownership For October 2024

XTRA:ADS
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As the German DAX index surged by over 4% in September 2024, driven by hopes of interest rate cuts and positive sentiment from China's economic stimulus measures, investors are increasingly focusing on growth opportunities within Europe's largest economy. In this context, stocks with high insider ownership often attract attention due to the potential alignment of interests between company executives and shareholders, suggesting confidence in their companies' future prospects.

Top 10 Growth Companies With High Insider Ownership In Germany

NameInsider OwnershipEarnings Growth
Stemmer Imaging (XTRA:S9I)24.8%23.2%
Exasol (XTRA:EXL)25.3%117.1%
Deutsche Beteiligungs (XTRA:DBAN)39.5%54.1%
adidas (XTRA:ADS)16.6%41.8%
pferdewetten.de (XTRA:EMH)26.8%97.9%
Alelion Energy Systems (DB:2FZ)37.4%106.6%
Beyond Frames Entertainment (DB:8WP)10.8%112.2%
R. STAHL (XTRA:RSL2)37.9%59.3%
Friedrich Vorwerk Group (XTRA:VH2)18.8%24.6%
elumeo (XTRA:ELB)25.8%120.2%

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

Let's review some notable picks from our screened stocks.

adidas (XTRA:ADS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, along with its subsidiaries, is involved in the design, development, production, and marketing of athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America with a market cap of €42.35 billion.

Operations: The company's revenue segments include Greater China at €3.26 billion, Latin America at €2.39 billion, and North America at €5.07 billion.

Insider Ownership: 16.6%

adidas AG's recent earnings report highlights strong growth, with second-quarter sales reaching €5.82 billion and net income of €190 million, indicating significant profitability improvements. The company has revised its 2024 guidance upward, expecting operating profit around €1 billion despite currency challenges. While insider trading activity is minimal, adidas forecasts robust annual earnings growth of 41.8%, outpacing the German market. However, revenue growth is projected at a moderate 8.4% annually.

XTRA:ADS Ownership Breakdown as at Oct 2024
XTRA:ADS Ownership Breakdown as at Oct 2024

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 €2.74 billion.

Operations: The company's revenue is divided into two segments: DACH, generating €1.74 billion, and International, contributing €391 million.

Insider Ownership: 17.4%

Redcare Pharmacy is expected to see earnings grow at 51.63% annually, surpassing the German market average and becoming profitable within three years. Despite past shareholder dilution and recent insider selling, its revenue growth forecast of 16.9% per year outpaces the broader market's 5.4%. The company reported a first-half sales increase to €1.12 billion but remains unprofitable with a net loss of €12.07 million, reflecting ongoing volatility and valuation concerns despite trading below estimated fair value.

XTRA:RDC Ownership Breakdown as at Oct 2024
XTRA:RDC Ownership Breakdown as at Oct 2024

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 €7.41 billion.

Operations: The company's revenue segments include a Segment Adjustment of €10.49 billion.

Insider Ownership: 10.4%

Zalando's earnings grew 84.3% last year and are forecast to grow at 24.9% annually, outpacing the German market average of 20.2%. Recent Q2 results showed sales of €2.64 billion, with net income rising to €95.7 million from €56.6 million a year ago, reflecting strong profitability gains despite slower revenue growth projections of 5.6% per year compared to market expectations. The stock trades significantly below estimated fair value amid executive changes and no recent insider trading activity reported.

XTRA:ZAL Ownership Breakdown as at Oct 2024
XTRA:ZAL Ownership Breakdown as at Oct 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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