3 Japanese Growth Stocks With High Insider Ownership

Japan's stock markets have rebounded strongly, with the Nikkei 225 Index gaining 8.7% over a holiday-shortened week, bolstered by better-than-expected U.S. economic data and a robust domestic GDP expansion in the second quarter. Amid this positive backdrop, growth stocks with high insider ownership are particularly compelling as they often indicate confidence from those who know the company best and can signal strong future performance.

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%	30.5%
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%
AeroEdge (TSE:7409)	10.7%	25.3%
Soracom (TSE:147A)	16.5%	54.1%

Click here to see the full list of 104 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Medley (TSE:4480)

Simply Wall St Growth Rating: ★★★★★★

Overview: Medley, Inc. operates platforms for recruitment and medical businesses in Japan and the United States, with a market cap of ¥97.29 billion.

Operations: Medley generates revenue from New Services (¥573 million), the Medical Platform Business (¥6.09 billion), and the Human Resource Platform Business (¥17.87 billion).

Insider Ownership: 34%

Medley is experiencing robust growth, with earnings projected to increase by 30.5% annually, outpacing the Japanese market's 8.5% rate. Revenue is also forecasted to grow at 25% per year, significantly higher than the market average of 4.3%. Despite its high volatility over the past three months, Medley trades at a substantial discount—62% below its estimated fair value. The company has recently expanded its Jobley service across most of the U.S., enhancing its growth prospects further.

• Get an in-depth perspective on Medley's performance by reading our analyst estimates report here.
• Our valuation report here indicates Medley may be overvalued.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications both in Japan and internationally, with a market cap of ¥1.89 trillion.

Operations: Rakuten Group's revenue segments include Mobile (¥382.95 million), Fin Tech (¥772.29 million), and Internet Services (¥1.24 billion).

Insider Ownership: 17.3%

Rakuten Group is forecast to achieve profitability within the next three years, with earnings expected to grow by 82.86% annually. Despite this strong profit growth, revenue is projected to increase at a slower rate of 7.7% per year, which still outpaces the Japanese market's average of 4.3%. Insider ownership remains significant with no substantial insider trading activity reported in the past three months, reflecting confidence in Rakuten's long-term potential.

• Click here and access our complete growth analysis report to understand the dynamics of Rakuten Group.
• Our expertly prepared valuation report Rakuten Group implies its share price may be too high.

Lasertec (TSE:6920)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lasertec Corporation designs, manufactures, and sells inspection and measurement equipment in Japan and internationally, with a market cap of ¥2.61 trillion.

Operations: Revenue Segments (in millions of ¥): Lasertec generates revenue of ¥213.51 billion from its inspection and measurement equipment division.

Insider Ownership: 11.8%

Lasertec Corporation, a growth company with significant insider ownership, has shown robust financial performance. Earnings grew by 28% over the past year and are forecast to grow at 20% annually, outpacing the Japanese market. Revenue is expected to increase by 16.6% per year. Recent announcements include an increased dividend and strong earnings guidance for FY2025, with net sales projected at ¥240 billion and net income at ¥74 billion.

• Navigate through the intricacies of Lasertec with our comprehensive analyst estimates report here.
• According our valuation report, there's an indication that Lasertec's share price might be on the expensive side.

Key Takeaways

• Reveal the 104 hidden gems among our Fast Growing Japanese Companies With High Insider Ownership screener with a single click here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• 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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