Exploring Three Undervalued Small Caps With Insider Action In The Region

As global markets exhibit mixed reactions with a notable pivot towards small-cap and value shares, investors are keenly observing shifts in market dynamics influenced by economic indicators and geopolitical tensions. Amidst these conditions, identifying undervalued small-cap stocks that demonstrate insider buying can be particularly compelling, as such actions often signal confidence in the company's future prospects from those who know it best.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
Bytes Technology Group	25.0x	5.7x	0.71%	★★★★★☆
Hanover Bancorp	8.9x	2.0x	46.13%	★★★★★☆
Calfrac Well Services	2.3x	0.2x	27.94%	★★★★★☆
Primaris Real Estate Investment Trust	11.5x	3.0x	34.80%	★★★★★☆
Thryv Holdings	NA	0.7x	28.59%	★★★★★☆
AtriCure	NA	2.8x	46.29%	★★★★★☆
Norcros	8.2x	0.6x	-16.38%	★★★☆☆☆
Russel Metals	9.2x	0.5x	-7.78%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-120.08%	★★★☆☆☆

Click here to see the full list of 224 stocks from our Undervalued Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

Petco Health and Wellness Company (NasdaqGS:WOOF)

Simply Wall St Value Rating: ★★★★★☆

Overview: Petco Health and Wellness Company is a specialty retailer offering pet-related products and services, with a market capitalization of approximately $2.53 billion.

Operations: Specialty Retail generates significant revenue, totaling $6.23 billion, with a notable gross profit margin of 37.38% in the most recent fiscal period. The company's cost of goods sold recently amounted to $3.90 billion, reflecting substantial operational costs impacting profitability.

PE: -0.7x

Petco Health and Wellness Company, recently added to the Russell 2000 Index, reflects a strategic pivot with Joel D. Anderson's appointment as CEO, effective July 29, 2024. Anderson's leadership at Five Below saw significant expansion and revenue growth, signaling potential for similar achievements at Petco. Despite recent earnings volatility and a net loss in Q1 2025, insider confidence is evident as executives recently purchased shares, underscoring belief in the company’s trajectory amidst operational enhancements.

• Click to explore a detailed breakdown of our findings in Petco Health and Wellness Company's valuation report.

• Understand Petco Health and Wellness Company's track record by examining our Past report.

Biotage (OM:BIOT)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Biotage is a company specializing in healthcare software, with a market capitalization of approximately SEK 2.08 billion.

Operations: Healthcare Software generated SEK 2.08 billion in revenue, with a notable gross profit margin of 62.73% as of the latest period. The company's net income for the same period stood at SEK 251 million, reflecting a net income margin of approximately 12.08%.

PE: 59.1x

Amidst a landscape of M&A rumors, Biotage has demonstrated financial resilience with its Q2 sales surging to SEK 504 million from SEK 409 million in the prior year, and net income rising to SEK 48 million. This growth narrative is complemented by insider confidence, as evidenced by recent share purchases by company insiders, signaling their belief in the firm's robust prospects. Additionally, Biotage's strategic deliberations on potential acquisitions or partnerships underscore its proactive stance in capitalizing on industry opportunities.

• Get an in-depth perspective on Biotage's performance by reading our valuation report here.

• Explore historical data to track Biotage's performance over time in our Past section.

Kinetic Development Group (SEHK:1277)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kinetic Development Group is a company primarily engaged in property development and investment activities, with a market capitalization of approximately CN¥1.27 billion.

Operations: The company has experienced a notable increase in gross profit margin, rising from 9.05% in September 2013 to 59.07% by July 2024, highlighting significant improvements in cost management relative to revenue generation. This financial trend is supported by a consistent escalation of revenue from CN¥102.90 million to CN¥4745.07 million over the same period, demonstrating substantial growth in business scale and efficiency.

PE: 4.3x

Kinetic Development Group, reflecting a strategic stance in the market, recently saw insider confidence with significant share purchases. Highlighting its appeal among undervalued entities, this firm operates on a funding model reliant solely on external borrowing—deemed riskier yet potentially rewarding. Despite a dividend cut to HKD 0.05 per share as of May 2024, adjustments in company bylaws hint at a streamlined corporate governance structure poised for future resilience and growth prospects in its sector.

• Unlock comprehensive insights into our analysis of Kinetic Development Group stock in this valuation report.

• Examine Kinetic Development Group's past performance report to understand how it has performed in the past.

Next Steps

• Investigate our full lineup of 224 Undervalued Small Caps With Insider Buying right here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com