In June 2024, the German market, along with other major European indices, has seen a decline due to concerns about rising inflation and policy tightening by the European Central Bank. In such a market environment, growth companies with high insider ownership can be attractive as insiders often have a strong commitment to the company’s long-term success.
Here are the top 10 growth companies with high insider ownership in Germany:
1. pferdewetten.de (XTRA:EMH) – Insider Ownership: 26.8%, Earnings Growth: 73.8%
2. Deutsche Beteiligungs (XTRA:DBAN) – Insider Ownership: 35.3%, Earnings Growth: 31.6%
3. YOC (XTRA:YOC) – Insider Ownership: 24.8%, Earnings Growth: 22.2%
4. NAGA Group (XTRA:N4G) – Insider Ownership: 14.1%, Earnings Growth: 58.1%
5. Exasol (XTRA:EXL) – Insider Ownership: 25.3%, Earnings Growth: 107.4%
6. Alelion Energy Systems (DB:2FZ) – Insider Ownership: 37.4%, Earnings Growth: 106.6%
7. Stratec (XTRA:SBS) – Insider Ownership: 30.9%, Earnings Growth: 22%
8. elumeo (XTRA:ELB) – Insider Ownership: 25.8%, Earnings Growth: 99.1%
9. Redcare Pharmacy (XTRA:RDC) – Insider Ownership: 17.7%, Earnings Growth: 46.9%
10. Friedrich Vorwerk Group (XTRA:VH2) – Insider Ownership: 18%, Earnings Growth: 29.9%
Redcare Pharmacy, with 17.7% insider ownership, is a growth company in Germany expected to become profitable in the next three years, surpassing the market average growth rate. Despite a forecasted annual revenue increase of 17%, above Germany’s market rate of 5.1%, the company’s return on equity is modest at 12.9%. The company’s share price has been volatile, but it reported a significant sales increase in Q1 2024.
Overall, growth companies with high insider ownership can present opportunities for investors in a challenging market environment.