In September 2024, the German market has seen modest gains, with the DAX index inching up by 0.11% amid a cautious investor outlook following the U.S. Federal Reserve's interest rate cut. This environment highlights the importance of identifying growth companies with high insider ownership, as these stocks often benefit from strong internal confidence and alignment of interests between management and shareholders. When considering potential investments in this context, it's crucial to focus on companies that demonstrate robust growth potential and have significant insider ownership, which can be indicative of management's belief in their long-term prospects.

Top 10 Growth Companies With High Insider Ownership In Germany

Click here to see the full list of 20 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

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 €1.95 billion.

Operations: The company's revenue segments include €157.97 million from the Credit Platform, €66.89 million from the Insurance Platform, and €175.87 million from Segment Adjustment.

Insider Ownership: 35%

Hypoport, a growth company with high insider ownership, has seen its earnings forecast to grow significantly at 34% per year, outpacing the German market. Despite this, its Return on Equity is projected to be low at 9.7%. Recently added to the MDAX Index and removed from the SDAX, Hypoport reported strong Q2 results with sales of €110.62 million and net income of €2.4 million, marking a turnaround from last year's losses.

• Delve into the full analysis future growth report here for a deeper understanding of Hypoport.
• The valuation report we've compiled suggests that Hypoport's current price could be inflated.

Redcare Pharmacy

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.51 billion.

Operations: Revenue segments for Redcare Pharmacy NV include €1.74 billion from the DACH region and €391.00 million from international markets.

Insider Ownership: 17.4%

Redcare Pharmacy, with substantial insider ownership, is forecast to achieve profitability within three years and sees its revenue growing at 17.1% annually, outpacing the German market’s 5.5%. Despite a recent net loss of €12.07 million for H1 2024, sales increased to €1.12 billion from €791.94 million a year ago. The stock trades significantly below estimated fair value but has experienced high volatility and significant insider selling in the past three months.

• Click to explore a detailed breakdown of our findings in Redcare Pharmacy's earnings growth report.
• Our comprehensive valuation report raises the possibility that Redcare Pharmacy is priced higher than what may be justified by its financials.

Zalando

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products, with a market cap of approximately €7.27 billion.

Operations: The company's revenue segments total €10.49 billion.

Insider Ownership: 10.4%

Zalando, a growth company with high insider ownership, has shown strong performance with earnings growing by 84.3% over the past year and forecasted to grow 25.15% annually. Recent Q2 results reported sales of €2.64 billion and net income of €95.7 million, both up from last year. Despite trading at 51.6% below its estimated fair value, Zalando's revenue growth is expected to slightly outpace the German market at 5.6% per year but remains lower than desired for high-growth companies.

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

Summing It All Up

• Take a closer look at our Fast Growing German Companies With High Insider Ownership list of 20 companies by clicking here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
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Seeking Other Investments?

• 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.

Companies discussed in this article include XTRA:HYQ XTRA:RDC and XTRA:ZAL.

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