Over the last 7 days, the United States market has experienced a slight decline of 1.1%, yet it remains up by 5.9% over the past year, with earnings projected to grow annually by 13% in the coming years. In this context, identifying small-cap stocks that are perceived as undervalued and have insider buying activity can be an effective strategy for enhancing portfolio potential amidst fluctuating market conditions.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Univest Financial operates as a diversified financial services company providing banking, insurance, and wealth management services, with a market cap of approximately $0.83 billion.
Operations: The primary revenue streams come from banking, insurance, and wealth management. Operating expenses are significant, with general and administrative expenses consistently being a major component. The net income margin has shown fluctuations over the years, reaching as high as 34.66% in certain periods before settling around 25.91% recently.
PE: 10.4x
Univest Financial, a smaller player in the financial sector, has shown signs of potential value with its recent performance. For the full year ended December 31, 2024, net income rose to US$75.93 million from US$71.1 million the previous year, while basic earnings per share increased to US$2.6 from US$2.42. Insider confidence is evident as they purchased shares recently, signaling trust in future prospects despite minor loan charge-offs and a slight dip in net interest income to US$211.17 million from US$220 million last year. The company also repurchased 139,492 shares for $4.13 million between October and December 2024 as part of their ongoing buyback program initiated in 2013—an indication of strategic capital allocation aimed at enhancing shareholder value amidst forecasted annual earnings growth of nearly 3%.
Overview: Donnelley Financial Solutions provides software solutions and compliance and communications management services to capital markets and investment companies, with a market cap of approximately $1.35 billion.
Operations: Revenue is primarily derived from Capital Markets and Investment Companies through Software Solutions and Compliance and Communications Management services. The company has seen fluctuations in its net income margin, which reached 13.22% as of the latest period ending April 2025. Operating expenses are significant, with General & Administrative Expenses being a major component, reaching $289.8 million in the most recent data point provided.
PE: 12.9x
Donnelley Financial Solutions, a smaller company in its sector, recently amended its credit agreement to secure a $115 million term loan and establish a $300 million revolving facility. This strategic move aims to refinance existing loans and improve financial flexibility. Despite facing revenue declines, the company is innovating with the EDGAR Next Enrollment Portal to streamline SEC compliance for clients. Notably, insider confidence is reflected through share repurchases totaling US$58.96 million by December 2024.
Overview: Flowco Holdings is a company that specializes in production solutions and natural gas technologies, with a market cap of approximately $2.75 billion.
Operations: Flowco Holdings generates revenue primarily through its Production Solutions and Natural Gas Technologies segments, with the former contributing $327.81 million and the latter $246.64 million. The company's gross profit margin has shown a declining trend from 62.67% in December 2022 to 50.60% by April 2025, reflecting changes in cost structures over time.
PE: 6.4x
Flowco Holdings, a smaller company in the U.S., recently showcased insider confidence with Independent Director Paul Hobby purchasing 10,000 shares for US$241,700. Despite facing challenges like reduced profit margins from 23.9% to 15% and high debt levels, their annual sales surged to US$535 million from US$243 million. The company's inclusion in the S&P TMI Index and projected earnings growth of over 24% annually suggest potential for future value realization amidst its financial hurdles.
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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.
