Over the last 7 days, the United States market has experienced a 3.4% decline, although it has risen by 6.1% over the past year with earnings projected to grow by 14% annually. In this environment, identifying small-cap stocks that are perceived as undervalued and have notable insider activity can present intriguing opportunities for investors seeking to capitalize on potential growth within diverse regions.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Mid Penn Bancorp operates as a full-service commercial banking and trust business with a focus on providing financial services, and it has a market capitalization of approximately $0.34 billion.
Operations: Mid Penn Bancorp generates its revenue entirely from its Full-Service Commercial Banking and Trust Business, with recent quarterly revenue reaching $177.65 million. The company consistently achieves a gross profit margin of 100%, while operating expenses primarily include general and administrative costs, which were $90.20 million in the latest period. Net income margin was reported at 27.83%.
PE: 10.1x
Mid Penn Bancorp, a smaller player in the financial sector, has shown insider confidence with share purchases over the past year. Despite recent shareholder dilution, its earnings are set to grow by 25.93% annually. In Q4 2024, they reported net interest income of US$41.28 million and net income of US$13.23 million, reflecting steady performance compared to the previous year. The company continues rewarding shareholders with consistent dividends while maintaining minimal charge-offs at less than 0.009% of total loans.
Overview: Embecta operates in the healthcare sector, focusing on disposable medical products, with a market capitalization of $1.36 billion.
Operations: Embecta generates its revenue primarily from disposable medical products, with a recent gross profit margin of 64.33%. The company's cost structure includes significant operating expenses and non-operating expenses, impacting the net income margin, which was 5.25% in the latest period.
PE: 12.7x
Embecta, a smaller player in the U.S. market, recently caught attention with insider confidence as David Melcher purchased 13,000 shares valued at US$177,646 in early 2025. Despite facing challenges such as lowered revenue guidance for fiscal year 2025 to US$1.075 billion - US$1.092 billion and declining sales from the previous year’s first quarter (US$261.9 million versus US$277.3 million), earnings are projected to grow by over 37% annually. The company maintains its quarterly dividend of US$0.15 per share amidst these dynamics, signaling financial stability despite reliance on external borrowing for funding needs without customer deposits backing it up.
Overview: West Bancorporation operates primarily as a community banking institution, focusing on providing financial services and products, with a market capitalization of approximately $0.41 billion.
Operations: The company generates revenue primarily from community banking, with a notable gross profit margin consistently at 100%. Operating expenses are a significant component of costs, with general and administrative expenses being the largest portion. The net income margin has shown fluctuations over time, reaching 46.67% in December 2021 before declining to 30.52% by December 2024.
PE: 14.0x
West Bancorporation has shown financial resilience with a notable increase in quarterly net interest income to US$19.42 million, up from US$16.36 million the previous year, and net income rising to US$7.1 million from US$4.53 million. Despite a slight dip in full-year net income compared to last year, insider confidence is evident as executives have been purchasing shares since early 2025, suggesting optimism about future growth prospects amid expected annual earnings growth of 16%.
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.
