3 Japanese Growth Stocks With Insider Ownership Up To 22%

Japan’s stock markets have rebounded strongly, with the Nikkei 225 Index gaining 8.7% and the broader TOPIX Index up 7.9%, buoyed by better-than-expected U.S. economic data and a stronger-than-anticipated expansion in Japan's GDP for the second quarter. This positive momentum provides an opportune backdrop to examine growth companies with significant insider ownership, as such stocks often reflect strong confidence from those closest to the business.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.9%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.8%	43.3%
Medley (TSE:4480)	34%	30.2%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	22%	75.2%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	21.3%	90%
AeroEdge (TSE:7409)	10.7%	28.5%
Soracom (TSE:147A)	16.5%	54.1%

Click here to see the full list of 105 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

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

UT GroupLtd (TSE:2146)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: UT Group Co., Ltd. specializes in dispatching and outsourcing permanent employees across manufacturing, design and development, construction, and other sectors in Japan with a market cap of ¥109.35 billion.

Operations: The company's revenue segments include Area Business at ¥66.39 billion, Manufacturing Business (Excluding Solution Business) at ¥64.78 billion, Solution Business at ¥18.89 billion, and Vietnam Business at ¥11.86 billion.

Insider Ownership: 22.7%

UT Group Ltd. stands out for its high insider ownership and consistent revenue growth, projected at 14.9% per year, surpassing the Japanese market average of 4.3%. The company recently confirmed guidance for fiscal year ending March 2025, expecting net sales of ¥215 billion and profit attributable to owners at ¥13 billion. Despite a volatile share price, UT Group is trading below fair value estimates and has launched new career support services through JOBPAL to enhance worker satisfaction and skill development.

• Navigate through the intricacies of UT GroupLtd with our comprehensive analyst estimates report here.
• Upon reviewing our latest valuation report, UT GroupLtd's share price might be too pessimistic.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. offers e-commerce, fintech, digital content, and communications services to users in Japan and internationally with a market cap of ¥1.92 trillion.

Operations: Rakuten Group generates revenue from its Mobile segment (¥382.95 million), Fin Tech segment (¥772.29 million), and Internet Services segment (¥1.24 billion).

Insider Ownership: 17.3%

Rakuten Group, Inc. exhibits significant insider ownership and is forecast to become profitable within three years, with earnings expected to grow 82.86% annually. Despite a highly volatile share price recently, revenue growth is projected at 7.7% per year, outpacing the Japanese market average of 4.3%. However, its Return on Equity is anticipated to be relatively low at 10.2%. The company reported Q2 earnings on August 9, 2024, reflecting ongoing financial developments.

• Get an in-depth perspective on Rakuten Group's performance by reading our analyst estimates report here.
• Our valuation report unveils the possibility Rakuten Group's shares may be trading at a premium.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment both in Japan and internationally, with a market cap of ¥2.60 trillion.

Operations: The primary revenue segment, generating ¥213.51 billion, is the design, manufacture, and sale of inspection and measurement equipment in Japan and internationally.

Insider Ownership: 11.8%

Lasertec Corporation shows strong insider ownership and is forecasted to achieve annual earnings growth of 20%, outpacing the Japanese market. Revenue is expected to grow at 16.6% per year, driven by robust sales of the ACTIS Series. Despite recent executive resignations, Lasertec maintains a high Return on Equity forecast of 41.8%. However, its share price has been highly volatile recently. The company also announced increased dividends and solid earnings guidance for FY2025.

• Dive into the specifics of Lasertec here with our thorough growth forecast report.
• Upon reviewing our latest valuation report, Lasertec's share price might be too optimistic.

Taking Advantage

• Explore the 105 names from our Fast Growing Japanese Companies With High Insider Ownership screener here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Searching for a Fresh Perspective?

• 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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