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Three Undervalued Small Caps In US With Insider Action

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Over the last 7 days, the United States market has risen by 1.6%, contributing to a remarkable 32% climb over the past year, with earnings forecasted to grow by 15% annually. In this dynamic environment, identifying stocks that are potentially undervalued while exhibiting insider activity can be an intriguing strategy for investors seeking opportunities in smaller companies.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Hanover Bancorp

13.2x

2.7x

35.44%

★★★★★☆

ProPetro Holding

NA

0.6x

41.65%

★★★★★☆

Thryv Holdings

NA

0.8x

42.39%

★★★★★☆

Capital Bancorp

14.6x

3.0x

46.52%

★★★★☆☆

HighPeak Energy

11.5x

1.7x

32.66%

★★★★☆☆

German American Bancorp

16.3x

5.4x

43.25%

★★★☆☆☆

USCB Financial Holdings

19.7x

5.6x

46.81%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

Delek US Holdings

NA

0.1x

-81.14%

★★★☆☆☆

Sabre

NA

0.5x

-83.91%

★★★☆☆☆

Click here to see the full list of 44 stocks from our Undervalued US Small Caps With Insider Buying screener.

Below we spotlight a couple of our favorites from our exclusive screener.

HighPeak Energy

Simply Wall St Value Rating: ★★★★☆☆

Overview: HighPeak Energy is engaged in the development, exploration, and production of oil and natural gas with a market capitalization of approximately $1.65 billion.

Operations: The primary revenue stream is from oil and natural gas development, exploration, and production, with the latest reported revenue at $1.14 billion. The gross profit margin has shown fluctuations but was most recently recorded at 82.69%. Operating expenses are significant, with general and administrative expenses being a notable component.

PE: 11.5x

HighPeak Energy's recent earnings report shows a mixed performance, with third-quarter revenue at US$271.58 million, down from US$345.59 million the previous year, yet net income rose to US$49.93 million from US$38.78 million. Insider confidence is evident as they increased their holdings recently, signaling potential undervalued opportunities despite external borrowing risks. The company repurchased 870,647 shares for US$12.69 million between July and September 2024, reflecting strategic financial management amidst a challenging funding landscape.

NasdaqGM:HPK Share price vs Value as at Nov 2024
NasdaqGM:HPK Share price vs Value as at Nov 2024

Diversified Healthcare Trust

Simply Wall St Value Rating: ★★★★★☆

Overview: Diversified Healthcare Trust is a real estate investment trust that primarily focuses on owning and operating medical office, life science, and senior housing properties, with a market capitalization of $1.22 billion.