Over the last 7 days, the United States market has experienced a 4.0% drop, yet it remains up by 24% over the past year with anticipated earnings growth of 15% per annum in the coming years. In this dynamic environment, identifying promising small-cap stocks with insider activity can offer investors unique opportunities to capitalize on potential market inefficiencies.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: OneWater Marine operates as a recreational boat retailer and distributor with a market cap of approximately $0.47 billion.
Operations: The company generates revenue primarily from its dealerships and distribution segments, with recent figures showing $1.62 billion from dealerships and $156.06 million from distribution. The gross profit margin has shown variability, reaching a high of 31.75% in June 2022 before declining to 24.71% by December 2024. Operating expenses, including significant general and administrative costs, impact overall profitability, contributing to the negative net income observed in recent periods despite substantial revenues.
PE: -50.5x
OneWater Marine, a small-cap company in the U.S., recently reported a reduced net loss of US$5.71 million for the year ended September 2024, down from US$38.59 million previously, indicating potential financial improvement despite revenue dipping to US$1.77 billion from US$1.94 billion. Insider confidence is evident with recent share purchases in November 2024, suggesting belief in future growth prospects amid revised credit agreements and cautious optimism for fiscal 2025 revenue between US$1.7 billion and US$1.85 billion amidst external challenges like hurricanes impacting early performance.
Overview: CPI Card Group is a company specializing in the production and provision of payment card solutions, including prepaid debit and credit cards, with a market capitalization of approximately $0.36 billion.
Operations: The company generates revenue primarily from its Debit and Credit segment, contributing $365.45 million, and the Prepaid Debit segment with $94.14 million. The gross profit margin has shown fluctuations over time, reaching 38.21% in September 2024. Operating expenses are a significant component of costs, with General & Administrative Expenses being a major part of it at $101.46 million as of September 2024.
PE: 23.5x
CPI Card Group, a smaller U.S. company, has shown insider confidence with recent share purchases, reflecting potential belief in its prospects. The firm reported Q3 2024 revenue of US$124.75 million but saw decreased net income at US$1.29 million from the previous year. Despite this, it raised its earnings guidance for 2024 to mid-to-high single-digit growth and completed a repurchase of 486,464 shares for US$8.85 million by September end, signaling strategic financial maneuvers amidst challenging profit margins and higher-risk funding reliance.
Overview: Maravai LifeSciences Holdings focuses on providing specialized products for nucleic acid production and biologics safety testing, with a market cap of approximately $2.20 billion.
Operations: Nucleic Acid Production and Biologics Safety Testing are the primary revenue streams. The company's gross profit margin showed a notable trend, peaking at 83.35% in Q1 2022 before declining to 46.36% by Q4 2024. Operating expenses have consistently been a significant component of the cost structure, with General & Administrative Expenses being substantial throughout the periods analyzed.
PE: -3.5x
Maravai LifeSciences Holdings, a company with a volatile share price over the past three months, faces challenges with its external borrowing as the sole funding source. Recent leadership changes saw R. Andrew Eckert take over as Chairman from founder Carl Hull, potentially steering new strategic directions. Despite reporting a net loss of US$99 million for Q3 2024 and facing goodwill impairment charges of US$154 million, insider confidence remains noteworthy through recent share purchases by key individuals.
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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.
