As global markets navigate mixed signals, with the S&P 600 for small-cap stocks showing modest gains and core inflation data remaining subdued, investors are increasingly looking for opportunities in undervalued sectors. In this environment, small-cap stocks with insider buying can offer compelling value propositions due to their potential for growth and alignment of interests between company insiders and shareholders.
Overview: Assura is a UK-based real estate investment trust specializing in the development and management of primary care properties, with a market cap of approximately £2.54 billion.
Operations: The company generates revenue primarily from its core segment, with the latest figure at £157.8 million. It has experienced fluctuations in net income margins, most recently recording a margin of -0.18%. Gross profit margins have generally been above 90%, with the latest at 90.81%. Operating expenses and non-operating expenses are significant cost components impacting overall profitability.
PE: -46.1x
Assura, a small-cap stock, recently announced a quarterly dividend of £0.0084 per share to be paid on 9 October 2024. The company acquired a private hospital portfolio in August 2024, signaling expansion efforts. Insider confidence is evident with recent share purchases by executives over the past six months. Despite not diluting shares this year, Assura's debt is solely funded through external borrowing, which carries higher risk. Earnings are forecasted to grow at an annual rate of 41.82%.
Overview: MaxLinear is a company that specializes in designing and providing semiconductors, with a market cap of approximately $2.70 billion.
Operations: MaxLinear's primary revenue stream is from its semiconductor segment, which generated $448.14 million in the most recent period. The company's cost of goods sold (COGS) for this period was $206.21 million, leading to a gross profit of $241.94 million and a gross profit margin of 53.99%.
PE: -6.4x
MaxLinear, a small cap company, recently showcased its Panther III storage accelerator at the Future of Memory and Storage trade show. This product boasts up to 40 times more throughput and 1000 times less CPU utilization than software-only solutions. Despite a challenging Q2 with sales dropping to US$91.99 million from US$183.94 million last year, insider confidence is evident with Kishore Seendripu purchasing over 108,000 shares worth approximately US$1.4 million in recent months.
Overview: Security Bank is a financial institution offering retail banking, business banking, financial markets services, and wholesale banking with a market cap of ₱84.22 billion.
Operations: The company's primary revenue streams are from Wholesale Banking (₱8.10 billion), Retail Banking (₱1.97 billion), and Business Banking (₱1.05 billion). The net income margin has fluctuated, with a recent value of 23.14% as of June 30, 2024. Operating expenses have increased over time, reaching ₱27.55 billion in the latest period reported
PE: 5.4x
Security Bank, a small-cap financial institution, recently reported a 32% increase in net interest income for Q2 2024 to PHP 10.93 billion and a rise in net income to PHP 2.82 billion from PHP 2.56 billion year-over-year. Despite having a high level of bad loans at 3.4%, the bank's earnings are forecasted to grow by 15.73% annually. Notably, insider confidence is evident with recent share purchases by executives over the past six months, signaling potential optimism about future performance amidst ongoing executive changes and strategic hires aimed at strengthening risk management and retail banking operations starting September 2024.
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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.
Companies discussed in this article include LSE:AGR NasdaqGS:MXL and PSE:SECB.
