The French stock market has been showing resilience, with the CAC 40 Index advancing by 2.48% amid growing hopes for interest rate cuts. This positive sentiment reflects broader optimism in the European markets, as evidenced by strong gains across major indices. In this favorable environment, growth companies with high insider ownership can be particularly appealing to investors. High insider ownership often signals confidence from those who know the company best and aligns their interests with shareholders, making these stocks worth a closer look.
Top 10 Growth Companies With High Insider Ownership In France
Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of approximately €1.16 billion.
Operations: The company's revenue segments include Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud & Other (€185.43 million).
Insider Ownership: 10.5%
OVH Groupe shows potential as a growth company with high insider ownership in France. Recent innovations include the launch of third-generation Advance Bare Metal servers powered by AMD EPYC 4004 Series processors, enhancing performance and price ratio. The company's revenue is forecast to grow at 10% annually, outpacing the French market's 5.8%. Despite high share price volatility, OVH is expected to become profitable within three years, with earnings projected to grow significantly each year.
Overview: Eurazeo SE is a private equity and venture capital firm that focuses on growth capital, acquisitions, leveraged buyouts, and investments in mid-market and listed public companies, with a market cap of €5.17 billion.
Operations: The company's revenue segments include private equity and venture capital activities, generating €354 million.
Insider Ownership: 12.1%
Eurazeo exhibits strong growth potential with high insider ownership in France. The company is forecast to achieve profitability within three years, with revenue expected to grow at 47.4% annually, significantly outpacing the French market's 5.8%. Despite a recent net loss of €104.56 million for H1 2024 and a dividend not well covered by earnings, analysts agree on a potential stock price rise of 29%, trading at 84% below estimated fair value.
Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America, with a market cap of €2.21 billion.
Operations: The company's revenue primarily comes from installing and maintaining electronic shelf labels, generating €801.96 million.
Insider Ownership: 13.4%
VusionGroup stands out among growth companies with high insider ownership in France, driven by substantial revenue and earnings growth forecasts of 21.3% and 25.7% per year, respectively. Recent partnerships with Ace Hardware and Hy-Vee highlight its innovative digital shelf label technology, enhancing operational efficiency and customer experience across thousands of retail locations. Despite no significant insider trading activity recently, analysts project a 40% stock price increase, reflecting strong market confidence in VusionGroup’s future performance.
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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 ENXTPA:OVH ENXTPA:RF and ENXTPA:VU.
