Euronext Paris Showcases Three Growth Companies With Strong Insider Ownership

Amidst a generally positive trend in European stock markets, with France's CAC 40 Index recently climbing by 1.67%, investors are showing renewed interest in growth companies. High insider ownership is often viewed as a strong vote of confidence in a company's potential, aligning management’s interests closely with shareholders, especially in an environment where market conditions are increasingly favorable.

Top 10 Growth Companies With High Insider Ownership In France

Name	Insider Ownership	Earnings Growth
VusionGroup (ENXTPA:VU)	13.5%	25.2%
Groupe OKwind Société anonyme (ENXTPA:ALOKW)	24.8%	30.8%
Adocia (ENXTPA:ADOC)	12.1%	104.5%
OSE Immunotherapeutics (ENXTPA:OSE)	25.6%	79.3%
Icape Holding (ENXTPA:ALICA)	30.2%	26.1%
Arcure (ENXTPA:ALCUR)	21.4%	42.4%
Solutions 30 (ENXTPA:S30)	16.2%	102.6%
La Française de l'Energie (ENXTPA:FDE)	20.1%	34.2%
Munic (ENXTPA:ALMUN)	29.4%	150%
MedinCell (ENXTPA:MEDCL)	16.4%	74.6%

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

Here's a peek at a few of the choices from the screener.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA specializes in industrial intelligence solutions for the fashion, automotive, and furniture sectors across various global regions, with a market capitalization of approximately €1.06 billion.

Operations: Lectra generates revenue from its operations in the Americas and Asia-Pacific, amounting to €170.33 million and €110.28 million respectively.

Insider Ownership: 19.6%

Lectra, a French company with significant insider ownership, reported a slight decline in net income and EPS in Q1 2024 but continues to show promise with sales increasing to €129.56 million. Analysts expect the stock price to rise by 28%, underpinned by forecasted earnings growth of 28.6% annually, outpacing the broader French market. Despite trading at 35.4% below estimated fair value and anticipated strong revenue growth of 11.3% per year, its return on equity is expected to remain low at 13.3%.

• Click here to discover the nuances of Lectra with our detailed analytical future growth report.
• The valuation report we've compiled suggests that Lectra's current price could be quite moderate.

MedinCell (ENXTPA:MEDCL)

Simply Wall St Growth Rating: ★★★★★☆

Overview: MedinCell S.A. is a French pharmaceutical company focused on developing long-acting injectable medications across multiple therapeutic areas, with a market capitalization of approximately €395.81 million.

Operations: The company generates its revenue primarily from the pharmaceuticals segment, totaling €11.95 million.

Insider Ownership: 16.4%

MedinCell, a French biotech firm with high insider ownership, faces challenges despite promising developments. Its recent earnings report showed a decrease in sales and revenue, with a net loss of €25.04 million, though this was an improvement from the previous year. The company's innovative BEPO® technology underpins its product pipeline, including F14 for post-surgical pain management in knee replacements which showed potential despite not meeting primary trial endpoints. MedinCell also secured a significant collaboration with AbbVie potentially worth up to €1.9 billion plus royalties, highlighting its growth trajectory and technological validation. Despite these advancements and expected rapid revenue growth of 42.9% per year, the firm is trading significantly below its estimated fair value and has less than one year of cash runway, indicating financial vulnerabilities.

• Delve into the full analysis future growth report here for a deeper understanding of MedinCell.
• In light of our recent valuation report, it seems possible that MedinCell is trading behind its estimated value.

OVH Groupe (ENXTPA:OVH)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OVH Groupe S.A. is a global provider of public and private cloud services, shared hosting, and dedicated server solutions, with a market capitalization of approximately €1.05 billion.

Operations: OVH Groupe's revenue is segmented into public cloud (€140.71 million), private cloud (€514.59 million), and web cloud (€179.45 million).

Insider Ownership: 10.5%

OVH Groupe, a French growth company with significant insider ownership, is navigating a volatile market with its share price experiencing substantial fluctuations recently. Despite these challenges, the company is on a path to profitability within the next three years, supported by an expected annual revenue growth of 10.9%. Recent strategic executive appointments, including Celine Choussy and Benjamin Revcolevschi, underscore its commitment to innovation and international expansion. However, it faces hurdles with a forecasted low return on equity of 3.7%.

• Click here and access our complete growth analysis report to understand the dynamics of OVH Groupe.
• Our comprehensive valuation report raises the possibility that OVH Groupe is priced higher than what may be justified by its financials.

Summing It All Up

• Reveal the 22 hidden gems among our Fast Growing Euronext Paris Companies With High Insider Ownership screener with a single click here.
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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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