Over the last 7 days, the United States market has dropped 3.4%, but it remains up by 20% over the past year, with earnings forecasted to grow by 15% annually. In this context, identifying undervalued small-cap stocks with insider buying can be a strategic approach for investors looking to capitalize on potential growth opportunities amidst current market fluctuations.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: ChoiceOne Financial Services operates as a community bank providing a range of financial services including personal and business banking, with a market cap of approximately $0.12 billion.
Operations: ChoiceOne Financial Services generates revenue primarily from its banking segment, which amounted to $83.14 million in the latest period. The company's operating expenses were $53.18 million, with general and administrative expenses making up a significant portion at $47.58 million. The net income margin for the most recent period was 27.23%.
PE: 12.0x
ChoiceOne Financial Services, a small cap stock in the U.S., has shown insider confidence with recent share purchases. Their earnings for Q2 2024 saw net interest income rise to US$18.37 million from US$16.09 million year-over-year, while net income increased to US$6.59 million from US$5.21 million. Despite shareholder dilution from a recent $30 million equity offering, they continue paying dividends, with the latest set at $0.27 per share for Q3 2024, reflecting steady financial health and potential growth prospects.
Overview: Gladstone Commercial is a real estate investment trust (REIT) focused on acquiring, owning, and managing commercial properties with a market cap of approximately $0.76 billion.
Operations: Gladstone Commercial generates revenue primarily from its commercial real estate investments, with a recent quarterly revenue of $145.15 million. The company has shown a gross profit margin of 79.12% in the latest period, reflecting its ability to manage costs effectively relative to its revenue generation.
PE: -457.0x
Gladstone Commercial has recently shown insider confidence with share purchases in the past quarter. They secured an 8-year lease extension with Elster Solutions and acquired a Class A industrial facility in Texas, leased to a top provider of electrical connectors. Despite unprofitability and reliance on external borrowing, the company reported improved earnings for Q2 2024, with net income reaching US$1.61 million compared to a loss last year. These moves align with their strategy of acquiring assets leased to credit-worthy tenants in strong markets.
Overview: Chimera Investment operates by investing, on a leveraged basis, in a diversified portfolio of mortgage assets and has a market cap of approximately $1.55 billion.
Operations: The company generates revenue primarily from investing in a diversified portfolio of mortgage assets, with recent quarterly revenues reaching $306.43 million. Operating expenses have varied but were reported at $53.49 million in the latest quarter, impacting net income, which was $140.77 million for the same period. Gross profit margin has shown fluctuations and was 89.91% most recently.
PE: 8.8x
Chimera Investment has demonstrated solid financial performance with net income for the second quarter of 2024 at US$56.66 million, up from US$36.02 million a year ago. Basic earnings per share rose to US$0.42 from US$0.23 in the same period last year, indicating strong profitability despite its reliance on external borrowing for funding. Recent insider confidence is evident with significant share purchases over the past six months, suggesting optimism about future prospects despite anticipated earnings decline by an average of 5.8% annually over the next three years.
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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.
