Discover 3 Undervalued Small Caps In The United States With Insider Buying

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The market has climbed by 4.1% over the past week, with every sector up and the Information Technology sector leading the way. In the last year, the market has climbed 25%, and earnings are forecast to grow by 15% annually. Identifying undervalued small-cap stocks with insider buying can be a strategic approach in such a robust market environment.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Ramaco Resources

12.0x

0.9x

35.99%

★★★★★★

Columbus McKinnon

20.5x

0.9x

43.64%

★★★★★★

Titan Machinery

3.4x

0.1x

40.66%

★★★★★☆

Chatham Lodging Trust

NA

1.3x

32.00%

★★★★★☆

Franklin Financial Services

9.6x

1.9x

39.28%

★★★★☆☆

MYR Group

34.1x

0.5x

42.35%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

Leggett & Platt

NA

0.4x

-1.92%

★★★☆☆☆

Alta Equipment Group

NA

0.1x

-62.86%

★★★☆☆☆

Delek US Holdings

NA

0.1x

-106.04%

★★★☆☆☆

Click here to see the full list of 67 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

AtriCure

Simply Wall St Value Rating: ★★★★★☆

Overview: AtriCure specializes in developing and selling surgical and medical equipment, with a market cap of approximately $2.16 billion.

Operations: AtriCure generates revenue primarily from Surgical & Medical Equipment, with recent figures reaching $429.95 million. The company reported a gross profit margin of 74.84% for the latest period ending June 2024, while net income stood at -$40.12 million, reflecting ongoing challenges in achieving profitability amidst substantial operating expenses and R&D investments.

PE: -29.0x

AtriCure, a small cap in the medical device sector, recently reported Q2 2024 sales of US$116.27 million, up from US$100.92 million a year ago, though net loss widened to US$8.01 million from US$5.12 million. Despite being unprofitable and reliant on external borrowing for funding, insider confidence is evident with significant share purchases over the past year. The company anticipates 2024 revenue between US$456-461 million and has secured regulatory approval in China for its AtriClip device, enhancing its market potential globally.

NasdaqGM:ATRC Share price vs Value as at Aug 2024
NasdaqGM:ATRC Share price vs Value as at Aug 2024

Bloomin' Brands

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Bloomin' Brands is a restaurant company operating multiple casual dining brands, with a market cap of approximately $2.16 billion.

Operations: The company generates revenue primarily from its U.S. operations ($3.97 billion) and international segments ($615.57 million). The cost of goods sold (COGS) for the latest period is $3.84 billion, resulting in a gross profit of $748.99 million and a gross profit margin of 16.32%.