3 Top German Growth Stocks With High Insider Ownership
As global markets face renewed fears about economic growth, Germany's DAX index has not been immune, experiencing a 3.20% decline recently. In this uncertain climate, identifying growth companies with high insider ownership can be particularly compelling for investors seeking stability and confidence in their investments. In this article, we will explore three top German growth stocks that exhibit significant insider ownership—a factor often seen as a vote of confidence by those who know the company best.
Top 10 Growth Companies With High Insider Ownership In Germany
Name | Insider Ownership | Earnings Growth |
pferdewetten.de (XTRA:EMH) | 26.8% | 70.6% |
Stemmer Imaging (XTRA:S9I) | 25.1% | 23.2% |
Deutsche Beteiligungs (XTRA:DBAN) | 39.5% | 54.1% |
Exasol (XTRA:EXL) | 25.3% | 117.1% |
adidas (XTRA:ADS) | 16.6% | 41.8% |
Alelion Energy Systems (DB:2FZ) | 37.4% | 106.6% |
Stratec (XTRA:SBS) | 30.9% | 20% |
Beyond Frames Entertainment (DB:8WP) | 10.8% | 112.2% |
R. STAHL (XTRA:RSL2) | 37.9% | 59.3% |
Redcare Pharmacy (XTRA:RDC) | 17.7% | 52.1% |
Below we spotlight a couple of our favorites from our exclusive screener.
Brockhaus Technologies
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Brockhaus Technologies AG is a private equity firm with a market cap of €296.71 million.
Operations: The company's revenue segments include Security Technologies at €37.03 million and Financial Technologies at €174.59 million.
Insider Ownership: 26.6%
Earnings Growth Forecast: 93% p.a.
Brockhaus Technologies is forecast to achieve profitability within the next three years, with earnings expected to grow 93% annually. Despite trading at 79.2% below its estimated fair value, its Return on Equity is projected to be low at 5.3%. Revenue growth is anticipated at 16.8% per year, outpacing the German market's average of 5.4%. Recent results show a revenue increase to €109.49 million for H1 2024 but a net loss of €6.65 million compared to €0.765 million last year.
Hypoport
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Hypoport SE develops and markets technology platforms for the financial services, property, and insurance industries in Germany, with a market cap of €1.68 billion.
Operations: The company's revenue segments include €157.97 million from the Credit Platform, €66.89 million from the Insurance Platform, and a Segment Adjustment of €175.87 million.
Insider Ownership: 35%
Earnings Growth Forecast: 35% p.a.
Hypoport SE, with significant insider ownership, recently reported strong earnings for Q2 2024: sales increased to €110.62 million from €85.29 million a year ago, and net income turned positive at €2.4 million compared to a loss of €2.61 million previously. Earnings are forecast to grow 35% annually, outpacing the German market's average of 19.9%. However, the stock has been highly volatile over the past three months and faces challenges with low projected Return on Equity (10.3%).
Verve Group
Simply Wall St Growth Rating: ★★★★☆☆
Overview: Verve Group SE operates a software platform for the automated buying and selling of digital advertising space in North America and Europe, with a market cap of €593.55 million.
Operations: Demand Side Platforms (DSP) generated €57.59 million, while Supply Side Platforms (SSP) contributed €341.35 million to the company's revenue segments.
Insider Ownership: 25.1%
Earnings Growth Forecast: 20% p.a.
Verve Group SE, with substantial insider ownership, has shown strong financial performance. Recent Q2 2024 earnings reported sales of €102.82 million, up from €82.56 million a year ago, and net income rose to €6.26 million from €1.74 million. The company’s earnings are forecast to grow significantly at 20% annually, though revenue growth is expected to be slower at 12.5%. Despite trading at good value compared to peers and industry estimates, the stock has been highly volatile recently and faces challenges with interest payments not well covered by earnings.
Next Steps
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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.
Companies discussed in this article include XTRA:BKHT XTRA:HYQ and XTRA:M8G.
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