3 Undervalued Small Caps With Insider Activity Across Global Markets

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The United States market has shown positive momentum, rising 1.3% over the last week and 8.2% over the past year, with earnings projected to grow by 14% annually. In this context, identifying stocks that are potentially undervalued can offer intriguing opportunities, especially when there is notable insider activity that may suggest confidence in their future prospects.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Name

PE

PS

Discount to Fair Value

Value Rating

PCB Bancorp

10.3x

2.9x

47.96%

★★★★★☆

Flowco Holdings

6.9x

1.0x

37.93%

★★★★★☆

West Bancorporation

12.7x

4.0x

37.69%

★★★★☆☆

Thryv Holdings

NA

0.8x

36.45%

★★★★☆☆

Columbus McKinnon

50.5x

0.5x

34.15%

★★★☆☆☆

MVB Financial

12.1x

1.6x

28.06%

★★★☆☆☆

Franklin Financial Services

14.8x

2.4x

29.84%

★★★☆☆☆

Delek US Holdings

NA

0.1x

-21.25%

★★★☆☆☆

Tandem Diabetes Care

NA

1.5x

-2991.71%

★★★☆☆☆

Titan Machinery

NA

0.2x

-387.85%

★★★☆☆☆

Click here to see the full list of 93 stocks from our Undervalued US Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Embecta

Simply Wall St Value Rating: ★★★★★☆

Overview: Embecta operates in the healthcare sector, focusing on the production and distribution of disposable medical products, with a market capitalization of approximately $1.25 billion.

Operations: The company's revenue primarily comes from disposable medical products, amounting to $1.11 billion. Over recent periods, the gross profit margin has shown a downward trend, reaching 64.33% by the latest period. Operating expenses have been significant, with general and administrative expenses consistently being a major component.

PE: 13.3x

Embecta, a small cap stock, shows insider confidence with David Melcher purchasing 13,000 shares for US$177,646 in February 2025. Despite earnings not covering interest payments well and reliance on higher-risk external funding, the company is poised for growth with a forecasted annual earnings increase of 37%. Upcoming Q2 results on May 9 may provide further insights into financial health. Potential investors should weigh these factors when considering Embecta's future prospects.

NasdaqGS:EMBC Share price vs Value as at May 2025
NasdaqGS:EMBC Share price vs Value as at May 2025

Potbelly

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Potbelly operates a chain of sandwich shops offering a variety of sandwiches, salads, and other food items, with a market cap of approximately $0.08 billion.

Operations: Potbelly's revenue model primarily involves generating income from its operations, with a significant portion of costs attributed to the cost of goods sold (COGS). The company has experienced fluctuations in net income margins, with recent figures showing a positive trend reaching 9.24% as of March 2025. Operating expenses have consistently been a major component of the company's cost structure, including general and administrative expenses which were $48.07 million in the latest period reported. Gross profit margin has shown an upward trajectory, reaching 35.98% by March 2025, indicating improved efficiency in managing production costs relative to sales revenue.