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Exploring Three Undervalued Small Caps In US With Insider Buying

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Over the last 7 days, the United States market has experienced a 3.9% decline, though it has risen by 17% over the past year with earnings forecasted to grow by 14% annually. In such dynamic conditions, identifying stocks that are potentially undervalued and have insider buying activity can be an intriguing strategy for investors seeking opportunities in small-cap companies.

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

Name

PE

PS

Discount to Fair Value

Value Rating

First Mid Bancshares

11.5x

2.8x

47.73%

★★★★★☆

McEwen Mining

3.7x

1.9x

49.67%

★★★★★☆

OptimizeRx

NA

1.1x

41.00%

★★★★★☆

Shore Bancshares

11.5x

2.6x

-1.46%

★★★★☆☆

German American Bancorp

14.0x

4.7x

47.09%

★★★★☆☆

Quanex Building Products

29.3x

0.8x

40.91%

★★★★☆☆

S&T Bancorp

11.6x

4.0x

38.47%

★★★★☆☆

Arrow Financial

15.0x

3.3x

39.08%

★★★☆☆☆

Columbus McKinnon

56.0x

0.5x

42.53%

★★★☆☆☆

Delek US Holdings

NA

0.1x

-60.63%

★★★☆☆☆

Click here to see the full list of 52 stocks from our Undervalued US Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

First Mid Bancshares

Simply Wall St Value Rating: ★★★★★☆

Overview: First Mid Bancshares operates as a financial holding company providing banking services, with a focus on traditional community banking, and has a market cap of approximately $0.64 billion.

Operations: The primary revenue stream is from banking, with a gross profit margin consistently at 100%. Operating expenses primarily comprise general and administrative costs, which reached $169.37 million in the latest period. The net income margin has shown variability, reaching 24.70% recently.

PE: 11.5x

First Mid Bancshares, a dynamic player in the financial sector, shows promising growth potential with earnings expected to rise 7.14% annually. Their recent earnings report for Q4 2024 highlighted a net income increase to US$19.17 million from US$18.07 million the previous year, alongside stable dividends of US$0.24 per share set for February 28, 2025. Despite facing increased net charge-offs at US$2.24 million, insider confidence remains strong with recent purchases indicating belief in future prospects within this competitive market space.

NasdaqGM:FMBH Share price vs Value as at Feb 2025
NasdaqGM:FMBH Share price vs Value as at Feb 2025

Old Second Bancorp

Simply Wall St Value Rating: ★★★★★★

Overview: Old Second Bancorp operates as a community banking organization, providing a range of financial services and products, with a market cap of approximately $0.87 billion.

Operations: The company generates revenue primarily from community banking, with recent figures showing $272.70 million. Operating expenses are significant, with general and administrative expenses being a major component at $128.75 million in the latest period. The net income margin has shown variability, reaching 34.79% in the most recent quarter of 2023-09-30 before slightly decreasing to 31.27% by the end of 2024-12-31.