Top 3 Japanese Growth Stocks With High Insider Ownership

Japan's stock markets have seen modest gains recently, with the Nikkei 225 Index rising by 0.8% and the broader TOPIX Index up by 0.2%, amid speculation about potential interest rate hikes by the Bank of Japan. As economic conditions stabilize and inflation targets appear attainable, investors are increasingly looking for growth opportunities in companies where insiders have substantial ownership stakes. In this context, high insider ownership often signals strong confidence in a company's future prospects, making such stocks particularly attractive to growth-focused investors.

Top 10 Growth Companies With High Insider Ownership In Japan

Name	Insider Ownership	Earnings Growth
Micronics Japan (TSE:6871)	15.3%	32.7%
Hottolink (TSE:3680)	27%	61.9%
Kasumigaseki CapitalLtd (TSE:3498)	34.7%	43.3%
Medley (TSE:4480)	34%	30.5%
SHIFT (TSE:3697)	35.4%	32.8%
ExaWizards (TSE:4259)	22%	63%
Money Forward (TSE:3994)	21.4%	66.9%
Astroscale Holdings (TSE:186A)	21.3%	90%
Loadstar Capital K.K (TSE:3482)	33.8%	24.3%
Soracom (TSE:147A)	16.5%	54.1%

Click here to see the full list of 103 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's dive into some prime choices out of the screener.

giftee (TSE:4449)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: giftee Inc. operates in the Internet service sector in Japan, with a market cap of ¥37.83 billion.

Operations: Revenue segments for giftee Inc. include Internet services in Japan, totaling ¥37.83 billion.

Insider Ownership: 35%

Giftee, a Japanese growth company with high insider ownership, is forecasted to see its revenue grow by 18.9% annually, outpacing the JP market's 4.3% growth rate. Despite insufficient data on future Return on Equity, giftee has demonstrated robust earnings growth of 77.3% over the past year and is expected to continue growing at an impressive rate of 58.49% annually. The company shows a high level of non-cash earnings but lacks recent substantial insider trading activity.

• Click to explore a detailed breakdown of our findings in giftee's earnings growth report.
• Our expertly prepared valuation report giftee implies its share price may be too high.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors serving users in Japan and internationally with a market cap of ¥2.02 trillion.

Operations: Rakuten Group generates revenue from e-commerce, fintech, digital content, and communications services across Japan and international markets.

Insider Ownership: 17.3%

Rakuten Group's revenue is forecast to grow at 7.6% annually, outpacing the JP market's 4.3%. Despite a low expected Return on Equity of 9.5% in three years, earnings are projected to grow significantly by 82.87% per year, and the company is expected to become profitable within that timeframe. However, Rakuten has experienced high share price volatility recently and lacks substantial insider trading activity over the past three months.

• Unlock comprehensive insights into our analysis of Rakuten Group stock in this growth report.
• In light of our recent valuation report, it seems possible that Rakuten Group is trading beyond its estimated value.

Inforich (TSE:9338)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Inforich Inc. provides portable power bank sharing services in Japan and has a market cap of ¥37.20 billion.

Operations: Inforich Inc. generates revenue through its portable power bank sharing services in Japan.

Insider Ownership: 19.1%

Inforich Inc. is expanding its ChargeSPOT business into Europe by establishing a subsidiary in the U.K., leveraging its success in Asia and Australia. The company’s revenue is forecast to grow at 24% annually, significantly outpacing the JP market's 4.3%. Earnings are expected to increase by 30.08% per year over the next three years, despite recent share price volatility and large one-off items impacting financial results.

• Delve into the full analysis future growth report here for a deeper understanding of Inforich.
• Our valuation report unveils the possibility Inforich's shares may be trading at a premium.

Where To Now?

• Take a closer look at our Fast Growing Japanese Companies With High Insider Ownership list of 103 companies by clicking here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Want To Explore Some Alternatives?

• 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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