3 High Growth Japanese Stocks With Significant Insider Ownership

Japan’s stock markets have shown modest gains recently, with the Nikkei 225 Index rising by 0.8% and the broader TOPIX Index up by 0.2%. Amid this backdrop of cautious optimism, investors are increasingly focusing on growth companies with significant insider ownership as potential opportunities. In the current market environment, stocks that combine high growth potential with substantial insider ownership can be particularly compelling. These characteristics often indicate strong confidence from those closest to the company's operations and strategy.

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%	32.1%
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 99 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Let's uncover some gems from our specialized screener.

DIP (TSE:2379)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: DIP Corporation, a labor force solution company, provides personnel recruiting services in Japan and has a market cap of ¥156.93 billion.

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

Insider Ownership: 39.9%

Earnings Growth Forecast: 13.6% p.a.

DIP Corporation, a growth company with high insider ownership in Japan, has recently completed a share buyback program, repurchasing 1.78 million shares for ¥4.99 billion to enhance shareholder value and capital efficiency. Despite unstable dividends, DIP's earnings grew by 20% last year and are forecast to grow at 13.64% annually, outpacing the JP market's expected profit growth of 8.5%. The company trades at good value compared to peers and industry standards.

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

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 ¥235.04 billion.

Operations: SHIFT Inc. generates revenue through its software quality assurance and testing solutions in Japan.

Insider Ownership: 35.4%

Earnings Growth Forecast: 32.1% p.a.

SHIFT, characterized by significant insider ownership, has demonstrated robust growth with earnings increasing 36.3% annually over the past five years. Analysts forecast revenue to grow at 20.3% per year and earnings at 32.1%, both outpacing the broader JP market's expectations. Despite trading at a substantial discount to estimated fair value, its share price has been highly volatile recently. No notable insider trading activity has been reported in the past three months.

• Take a closer look at SHIFT's potential here in our earnings growth report.
• The analysis detailed in our SHIFT valuation report hints at an deflated share price compared to its estimated value.

Rakuten Group (TSE:4755)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications sectors both in Japan and internationally, with a market cap of ¥2.21 trillion.

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

Insider Ownership: 17.3%

Earnings Growth Forecast: 83.2% p.a.

Rakuten Group, with substantial insider ownership, is forecast to see revenue growth of 7.6% annually, outpacing the broader JP market's 4.3%. Despite its volatile share price over the past three months, earnings are expected to grow significantly at 83.22% per year and become profitable within three years. Recent Q2 2024 earnings call highlighted progress but Return on Equity is forecasted to be low at 10.1%. No notable insider trading activity in the past three months.

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

Turning Ideas Into Actions

• Unlock more gems! Our Fast Growing Japanese Companies With High Insider Ownership screener has unearthed 96 more companies for you to explore.Click here to unveil our expertly curated list of 99 Fast Growing Japanese Companies With High Insider Ownership.
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Ready To Venture Into Other Investment Styles?

• 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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