3 Japanese Growth Companies With Up To 17% Insider Ownership

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Japan's stock markets have shown resilience, with the Nikkei 225 Index gaining 0.7% and the broader TOPIX Index up 1.0%, recovering from a steep sell-off earlier in the month. This recovery comes amid renewed U.S. growth fears and a hawkish outlook on Japan's monetary policy. In this context, identifying growth companies with high insider ownership can be particularly compelling for investors seeking stability and potential upside in a volatile market environment. High insider ownership often indicates strong confidence from those closest to the company, aligning their interests with those of shareholders.

Top 10 Growth Companies With High Insider Ownership In Japan

Name

Insider Ownership

Earnings Growth

Micronics Japan (TSE:6871)

15.3%

32.7%

Hottolink (TSE:3680)

27%

61.9%

Kasumigaseki CapitalLtd (TSE:3498)

34.7%

43.3%

Medley (TSE:4480)

34%

30.5%

Kanamic NetworkLTD (TSE:3939)

25%

28.3%

SHIFT (TSE:3697)

35.4%

32.1%

ExaWizards (TSE:4259)

22%

63%

Money Forward (TSE:3994)

21.4%

68.1%

Astroscale Holdings (TSE:186A)

21.3%

90%

Loadstar Capital K.K (TSE:3482)

33.8%

24.3%

Click here to see the full list of 100 stocks from our Fast Growing Japanese Companies With High Insider Ownership screener.

Here's a peek at a few of the choices from the screener.

Rakuten Group

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Rakuten Group, Inc. operates in e-commerce, fintech, digital content, and communications both in Japan and internationally with a market cap of ¥2.22 trillion.

Operations: Rakuten Group's revenue segments include Mobile at ¥382.95 million, Fin Tech at ¥772.29 million, and Internet Services at ¥1.24 billion.

Insider Ownership: 17.3%

Rakuten Group is forecast to become profitable over the next 3 years, with earnings expected to grow 83.28% annually, significantly above market average. Despite its highly volatile share price and slower revenue growth (7.6% per year) compared to high-growth benchmarks, the company's insider ownership remains strong with no substantial insider selling or buying in recent months. However, its return on equity is projected to be modest at 9.7%.

TSE:4755 Ownership Breakdown as at Sep 2024
TSE:4755 Ownership Breakdown as at Sep 2024

BayCurrent Consulting

Simply Wall St Growth Rating: ★★★★☆☆

Overview: BayCurrent Consulting, Inc. offers consulting services in Japan and has a market cap of ¥708.39 billion.

Operations: BayCurrent Consulting's revenue segments include consulting services in Japan.

Insider Ownership: 13.9%

BayCurrent Consulting is forecast to achieve revenue growth of 18.5% annually, outpacing the broader Japanese market's 4.3%. Earnings are expected to increase by 18.6% per year, also exceeding market averages. The company trades at a significant discount to its estimated fair value and has a high projected return on equity of 34.7% within three years. Despite recent share price volatility, insider ownership remains strong with no substantial insider trading activity reported in the last three months.