June 2024 Insight Into High Insider Ownership Growth Stocks On The Japanese Exchange
Japan’s stock market has displayed resilience with mixed weekly returns, reflecting a combination of domestic economic indicators and global market trends. Investors are navigating this dynamic landscape, with stocks that have high insider ownership in growth-oriented companies appearing particularly attractive. This alignment of shareholder interests with management could signal confidence in the company’s future prospects.
Here are the top 10 growth companies in Japan with high insider ownership:
1. SHIFT (TSE:3697) – Insider Ownership: 35.4%, Earnings Growth: 26.8%
2. Kanamic NetworkLTD (TSE:3939) – Insider Ownership: 25%, Earnings Growth: 28.9%
3. Hottolink (TSE:3680) – Insider Ownership: 27%, Earnings Growth: 57.3%
4. Medley (TSE:4480) – Insider Ownership: 34%, Earnings Growth: 28.7%
5. Micronics Japan (TSE:6871) – Insider Ownership: 15.3%, Earnings Growth: 39.7%
6. Kasumigaseki CapitalLtd (TSE:3498) – Insider Ownership: 34.8%, Earnings Growth: 44.6%
7. ExaWizards (TSE:4259) – Insider Ownership: 24.8%, Earnings Growth: 80.2%
8. Money Forward (TSE:3994) – Insider Ownership: 21.4%, Earnings Growth: 63.6%
9. Soiken Holdings (TSE:2385) – Insider Ownership: 19.8%, Earnings Growth: 118.4%
10. Soracom (TSE:147A) – Insider Ownership: 17.2%, Earnings Growth: 54.1%
One standout company in this list is Mercari, Inc., which operates a marketplace application in Japan and the United States. With a market capitalization of approximately ¥359 billion and insider ownership of 36%, Mercari has shown strong performance with earnings growth of 222.8% over the past year. The company is forecasted to continue growing at a rate of 19.1% annually, surpassing the Japanese market average.
Despite recent share price volatility, Mercari’s revenue is expected to increase by 9.9% annually, outpacing the market average. The company has also implemented innovative strategies, such as eliminating selling fees in its U.S operations, to enhance competitiveness and attract more users.
In conclusion, high insider ownership in growth companies in Japan can be a promising indicator of future success. Investors should consider these factors when making investment decisions in the stock market.