Stock Analysis

3 Euronext Paris Stocks Insiders Are Investing In With 101% Growth

As the European Central Bank's recent rate cuts aim to stimulate growth amid signs of weakening economic activity, the French stock market has shown resilience, with the CAC 40 Index gaining 1.54% in a week. In this context, growth companies with high insider ownership are particularly noteworthy as they often signal strong confidence from those closest to the business. A good stock in today's market is one where insiders are heavily invested, indicating their belief in its long-term potential despite current economic uncertainties. Here are three Euronext Paris stocks that insiders are betting on for substantial growth.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
Groupe OKwind Société anonyme (ENXTPA:ALOKW)24.8%36%
Adocia (ENXTPA:ADOC)11.9%63%
VusionGroup (ENXTPA:VU)13.4%82%
Icape Holding (ENXTPA:ALICA)30.2%27.3%
Arcure (ENXTPA:ALCUR)21.4%27.5%
La Française de l'Energie (ENXTPA:FDE)19.9%31.9%
S.M.A.I.O (ENXTPA:ALSMA)17.4%35.2%
Munic (ENXTPA:ALMUN)29.2%149.1%
MedinCell (ENXTPA:MEDCL)15.8%93.9%
OSE Immunotherapeutics (ENXTPA:OSE)25.6%5.9%

Click here to see the full list of 24 stocks from our Fast Growing Euronext Paris Companies With High Insider Ownership screener.

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

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, and furniture markets across Northern Europe, Southern Europe, the Americas, and the Asia Pacific with a market cap of €1.09 billion.

Operations: The company's revenue segments include €172.65 million from the Americas and €118.54 million from the Asia-Pacific region, with a segment adjustment of €209.13 million.

Insider Ownership: 19.6%

Earnings Growth Forecast: 29.3% p.a.

Lectra reported half-year sales of €262.29 million, up from €239.55 million the previous year, though net income decreased to €12.51 million from €14.47 million. The stock trades at 46.3% below its estimated fair value and is forecasted to grow earnings by 29.3% annually, outpacing the French market's 12.4%. Despite a lower return on equity forecast (13.2%), revenue growth is expected to exceed market averages at 10.4% per year without significant insider trading activity recently noted.

ENXTPA:LSS Ownership Breakdown as at Sep 2024

OVH Groupe (ENXTPA:OVH)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of €1.17 billion.

Operations: The company's revenue segments include €169.01 million from public cloud, €589.61 million from private cloud, and €185.43 million from web cloud services.

Insider Ownership: 10.5%

Earnings Growth Forecast: 101.1% p.a.

OVH Groupe, a growth company with high insider ownership, is forecast to grow earnings by 101.12% annually and become profitable within three years. Trading at 30.6% below its estimated fair value, OVH's revenue is expected to grow faster than the French market at 9.7% per year. However, its return on equity remains low (1.7%). Recent product innovations include ADV-Gen3 Bare Metal servers featuring AMD EPYC processors, enhancing performance and sustainability in data centers globally.

ENXTPA:OVH Earnings and Revenue Growth as at Sep 2024

VusionGroup (ENXTPA:VU)

Simply Wall St Growth Rating: ★★★★★★

Overview: VusionGroup S.A. provides digitalization solutions for commerce across Europe, Asia, and North America with a market cap of €2.40 billion.

Operations: The company's revenue segments include digitalization solutions for commerce in Europe, Asia, and North America.

Insider Ownership: 13.4%

Earnings Growth Forecast: 82% p.a.

VusionGroup, with high insider ownership, is forecast to grow revenue by 23.5% annually and become profitable within three years. Recent earnings showed a net loss of €24.4 million despite sales rising to €408.9 million. Key partnerships with Ace Hardware and Hy-Vee highlight its advanced digital shelf label technology's market traction, enhancing operational efficiencies and customer experience in retail stores. Trading at 60.2% below fair value estimates, analysts expect the stock price to rise by 29.4%.

ENXTPA:VU Earnings and Revenue Growth as at Sep 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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