Exploring US Undervalued Small Caps With Insider Buying In December 2024

In This Article:

The United States market has experienced a flat performance over the last week but has seen an impressive 32% increase over the past year, with earnings forecasted to grow by 15% annually. In such a dynamic environment, identifying small-cap stocks that are potentially undervalued and exhibit insider buying can be an intriguing strategy for investors seeking opportunities in this segment.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Capital Bancorp

15.0x

3.1x

44.42%

★★★★☆☆

Hanover Bancorp

13.7x

2.8x

33.82%

★★★★☆☆

Thryv Holdings

NA

0.8x

42.11%

★★★★☆☆

German American Bancorp

16.2x

5.4x

43.64%

★★★☆☆☆

USCB Financial Holdings

19.0x

5.4x

48.74%

★★★☆☆☆

First United

14.4x

3.3x

43.91%

★★★☆☆☆

Orion Group Holdings

NA

0.4x

-240.18%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

HighPeak Energy

11.6x

1.7x

32.70%

★★★☆☆☆

Delek US Holdings

NA

0.1x

-80.77%

★★★☆☆☆

Click here to see the full list of 51 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

B&G Foods

Simply Wall St Value Rating: ★★★★★☆

Overview: B&G Foods is a company that manufactures, sells, and distributes a diverse portfolio of branded shelf-stable and frozen foods across the United States, with a market capitalization of approximately $1.37 billion.

Operations: BGS generates revenue primarily from product sales, with cost of goods sold (COGS) being a significant expense. Over the years, gross profit margin has shown variability, reaching 22.39% by late 2024. Operating expenses include general and administrative costs, which consistently contribute to the company's financial structure. Net income margin has fluctuated significantly, turning negative in recent periods due to increased non-operating expenses.

PE: -20.6x

B&G Foods, a smaller company in the U.S., has been drawing attention due to insider confidence, as Stephen Sherrill recently purchased 125,000 shares valued at approximately US$1.07 million. This activity coincides with improved financial performance; Q3 2024 saw net income of US$7.46 million compared to a loss last year. Despite sales declining to US$461 million from US$502 million year-over-year, earnings per share turned positive at US$0.09 from a prior loss of US$1.11 per share, highlighting potential for recovery amidst higher-risk external funding challenges and revised annual sales guidance between $1.92 billion and $1.95 billion for 2024.