Over the last 7 days, the United States market has experienced a 2.1% decline, although it has risen by 21% over the past year, with earnings projected to grow by 15% annually. In this dynamic environment, identifying small-cap stocks that are perceived as undervalued and exhibit insider activity can be a strategic approach for investors seeking opportunities in less prominent segments of the market.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Hudson Technologies specializes in providing innovative solutions for the refrigeration industry, with a focus on refrigerant sales and services, and has a market capitalization of approximately $0.69 billion.
Operations: The company generates revenue primarily through its wholesale segment, with a recent figure of $247.33 million. The gross profit margin has shown fluctuations over time, reaching 52.15% in September 2022 before declining to 29.88% by September 2024. Operating expenses have consistently impacted profitability, with general and administrative costs being a significant component, recorded at $33.55 million in September 2024.
PE: 8.5x
Hudson Technologies, a small company in the U.S., is facing challenges with declining earnings and lower profit margins. In Q3 2024, sales fell to US$61.94 million from US$76.5 million the previous year, while net income decreased to US$7.81 million from US$13.58 million. Despite this, insider confidence is evident through recent share repurchases totaling 326,028 shares for US$2.63 million between August and September 2024. The company also adjusted its revenue guidance for 2024 downward but expanded its buyback plan by an additional US$10 million, signaling potential long-term value recognition amidst current financial hurdles.
Overview: Capitol Federal Financial is a banking institution primarily engaged in community banking operations, with a market capitalization of approximately $1.24 billion.
Operations: The company primarily generates revenue through its community banking operations, with recent figures showing a revenue of $166.05 million. Operating expenses are significant, totaling $105.89 million in the latest period, with general and administrative expenses accounting for $87.85 million of this amount. The net income margin has shown fluctuations over time, most recently recorded at 22.87%.
PE: 19.1x
Capitol Federal Financial, a smaller player in the financial sector, has shown resilience with its recent earnings turnaround. For the year ending September 2024, net income reached US$38.01 million compared to a net loss of US$101.66 million previously. This improvement reflects stronger operations and potential growth prospects as earnings are forecasted to grow annually by 26.21%. Despite no insider buying activity reported recently, the company remains committed to shareholder returns with a consistent dividend of US$0.085 per share announced for November 2024 payout.
Overview: Capital Southwest is a business development company that provides financing solutions to middle-market companies, with a market capitalization of approximately $0.56 billion.
Operations: The company generates revenue primarily from investments, with a recent figure of $195.06 million. Operating expenses are a significant cost component, recently reported at $26.26 million. The net income margin has shown variability, with the latest being 37.77%.
PE: 14.1x
Capital Southwest, a smaller company in the U.S., has been attracting attention for its potential value. Despite challenges with debt coverage by operating cash flow, the firm maintains strong liquidity and seeks acquisitions to bolster growth. Recent insider confidence is evident as insiders have been purchasing shares over the past year, signaling belief in future prospects. The company reported Q2 2025 revenues of US$48.71 million, up from US$42.78 million last year, though net income remained stable at around US$22 million.
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.
