3 Japanese Growth Stocks With Up To 39% Insider Ownership

Japan’s stock markets have seen a notable rise, with the Nikkei 225 Index gaining 3.1% and the broader TOPIX Index up 2.8%, driven by a weaker yen following recent monetary policy decisions by both the U.S. Federal Reserve and the Bank of Japan. As investors navigate these dynamic market conditions, identifying growth companies with substantial insider ownership can be a strategic approach, as high insider stakes often signal confidence in long-term potential and alignment with shareholder interests.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	31.5%
Hottolink (TSE:3680)	27%	61.5%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.5%
Medley (TSE:4480)	34%	30.4%
Kanamic NetworkLTD (TSE:3939)	25%	28.3%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	68.1%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
AeroEdge (TSE:7409)	10.7%	25.3%
Soracom (TSE:147A)	16.5%	54.1%

Click here to see the full list of 102 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

DIP (TSE:2379)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: DIP Corporation, with a market cap of ¥155.37 billion, is a labor force solution company that provides personnel recruiting services in Japan.

Operations: The company's revenue segments include personnel recruiting services in Japan.

Insider Ownership: 39.3%

DIP Corporation, a growth company with high insider ownership in Japan, has recently undergone significant executive changes to bolster its AI and DX services. The company completed a share buyback of ¥4.99 billion, enhancing shareholder value. Despite an unstable dividend track record, DIP's earnings grew by 20% last year and are forecast to grow at 13.28% annually. Trading at 62% below estimated fair value, it offers good relative value compared to peers and industry norms.

• Delve into the full analysis future growth report here for a deeper understanding of DIP.
• Upon reviewing our latest valuation report, DIP's share price might be too pessimistic.

SHIFT (TSE:3697)

Simply Wall St Growth Rating: ★★★★★☆

Overview: SHIFT Inc. provides software quality assurance and testing solutions in Japan and has a market cap of ¥241.21 billion.

Operations: SHIFT Inc. generates revenue from software testing related services (¥68.64 billion) and software development related services (¥33.55 billion).

Insider Ownership: 35.4%

SHIFT, characterized by high insider ownership, is forecast to see substantial growth with earnings expected to rise 32.21% annually over the next three years, significantly outpacing the Japanese market's 8.6% growth rate. Despite its highly volatile share price in recent months and no notable insider trading activity recently, SHIFT trades at a considerable discount—41.1% below estimated fair value—making it an attractive option for growth-focused investors.

• Dive into the specifics of SHIFT here with our thorough growth forecast report.
• The valuation report we've compiled suggests that SHIFT's current price could be inflated.

Union Tool (TSE:6278)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Union Tool Co. is a company that produces and sells cutting tools, linear motion products, and metal machining equipment both in Japan and internationally, with a market cap of ¥107.28 billion.

Operations: Revenue segments for Union Tool Co. are: Asia ¥15.05 billion, Japan ¥19.84 billion, Europe ¥2.17 billion, and North America ¥1.84 billion.

Insider Ownership: 39.2%

Union Tool, with significant insider ownership, is forecast to grow its earnings by 21.45% per year, outpacing the Japanese market's 8.6%. Although its share price has been highly volatile recently and lacks recent insider trading activity, it trades at a 21.8% discount to estimated fair value. For fiscal year ending December 2024, Union Tool expects net sales of ¥30 billion and operating profit of ¥6.4 billion, reflecting robust growth potential for investors focused on high-insider-ownership companies in Japan.

• Take a closer look at Union Tool's potential here in our earnings growth report.
• Our valuation report unveils the possibility Union Tool's shares may be trading at a premium.

Seize The Opportunity

• Unlock our comprehensive list of 102 Fast Growing Japanese Companies With High Insider Ownership by clicking here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Ready For A Different Approach?

• 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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