icon
icon
icon
icon
Upgrade
icon

3 Growth Stocks With High Insider Ownership On The German Exchange

AInvestThursday, Oct 10, 2024 11:21 pm ET
2min read
The German stock market has seen a surge in growth stocks with high insider ownership, indicating confidence from those closest to the companies. These stocks offer attractive investment opportunities for those seeking growth potential. In this article, we will explore three such companies listed on the German exchange.


1. adidas AG (XTRA:ADS)
adidas AG, with a market cap of €42.48 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America. The company's revenue segments include €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America. adidas AG has high insider ownership of 16.6%.

Earnings Growth Forecast: 41.8% p.a.
adidas AG has shown strong recent performance, with Q2 2024 earnings reporting sales of €5.82 billion and net income of €190 million, both up from a year ago. The company raised its full-year guidance, expecting operating profit around €1 billion despite unfavorable currency effects. Forecasts indicate annual earnings growth of 42.1% and revenue growth at 8.4%, outpacing the German market averages.


2. Hypoport SE (XTRA:HYQ)
Hypoport SE develops and markets technology platforms for the financial services, property, and insurance industries in Germany, with a market cap of €1.98 billion. The company's revenue segments include €157.97 million from the Credit Platform and €66.89 million from the Insurance Platform, with a Segment Adjustment of €175.87 million. Hypoport SE has high insider ownership of 35%.

Earnings Growth Forecast: 34% p.a.
Hypoport SE has shown significant growth, recently added to Germany's MDAX Index. The company reported Q2 2024 sales of €110.62 million and net income of €2.4 million, reversing a loss from the previous year. Forecasts indicate annual earnings growth of 34%, outpacing the German market average. Despite a volatile share price and low future return on equity (9.7%), Hypoport's revenue is expected to grow at 12.5% annually.


3. Zalando SE (XTRA:ZAL)
Zalando SE operates an online platform for fashion and lifestyle products, with a market cap of €7.61 billion. Zalando SE's revenue segments include Reconciliation at -€275 million and Segment Adjustment at €10.49 billion. Zalando, with substantial insider ownership of 10.4%, has demonstrated strong growth. Earnings grew by 84.3% over the past year and are forecast to grow 25% annually, outpacing the German market's average. Although revenue is expected to grow at a slower 5.6% per year, it still surpasses the market average of 5.5%. The stock trades at nearly half its estimated fair value and recent earnings reports show improved profitability despite CFO changes ahead in early 2025.


In conclusion, these three growth stocks with high insider ownership on the German exchange offer attractive investment opportunities for those seeking growth potential. adidas AG, Hypoport SE, and Zalando SE have shown strong financial performance and are expected to continue their growth trajectories.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.