Top Undervalued Small Caps With Insider Buying In August 2024

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In a market where small-cap and value shares are outpacing their large-cap counterparts, investors are keenly observing economic indicators and earnings reports to navigate the current landscape. Despite mixed returns in broader indices, the resilience of small caps presents unique opportunities, particularly when accompanied by insider buying. Identifying undervalued stocks often involves looking for companies with strong fundamentals that may be temporarily overlooked by the market. In this context, insider buying can serve as a positive signal of confidence from those closest to the company's operations.

Top 10 Undervalued Small Caps With Insider Buying

Name

PE

PS

Discount to Fair Value

Value Rating

Hanover Bancorp

9.0x

2.1x

44.48%

★★★★★☆

Thryv Holdings

NA

0.8x

31.64%

★★★★★☆

AtriCure

NA

2.4x

46.30%

★★★★★☆

THG

NA

0.4x

42.29%

★★★★★☆

Bytes Technology Group

26.1x

5.9x

-3.86%

★★★★☆☆

CVS Group

23.1x

1.3x

37.08%

★★★★☆☆

Norcros

7.7x

0.5x

-11.36%

★★★☆☆☆

PowerCell Sweden

NA

4.2x

44.77%

★★★☆☆☆

NSI

NA

4.6x

38.42%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

Click here to see the full list of 210 stocks from our Undervalued Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Breedon Group

Simply Wall St Value Rating: ★★★★☆☆

Overview: Breedon Group is a leading construction materials company in the UK and Ireland, with operations in cement production, aggregates, asphalt, ready-mixed concrete, and contracting services.

Operations: Breedon Group's revenue streams are primarily derived from Great Britain (£1006.60 million), Cement (£311.30 million), and Ireland (£237.60 million). The company's net profit margin has fluctuated, with recent figures showing 7.14% as of September 2023 and a lower 6.34% by June 2024, indicating varying profitability over time.

PE: 15.4x

Breedon Group, a construction materials company, reported H1 2024 sales of £764.6 million and net income of £34.1 million, down from £43.9 million the previous year. Despite this dip in earnings, their forecasted annual growth rate stands at 14%. Notably, insider confidence is evident with several key figures purchasing shares over the past six months. The company's reliance on external borrowing for funding poses higher risks but reflects its strategic expansion efforts within the industry context.

LSE:BREE Share price vs Value as at Aug 2024
LSE:BREE Share price vs Value as at Aug 2024

Papa John's International

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Papa John's International operates a global pizza delivery and carryout chain with a market cap of approximately $2.56 billion.