Top Undervalued Small Caps With Insider Action For July 2024

As global markets continue to navigate a mixed economic landscape, small-cap stocks have shown resilience, outpacing their large-cap counterparts in recent weeks. With the S&P 600 and Russell 2000 indices reflecting this trend, investors are increasingly turning their attention to undervalued small caps that exhibit strong fundamentals and insider action. In the current market environment, identifying promising small-cap stocks involves looking for companies with solid financial health, growth potential, and significant insider buying—indicating confidence from those closest to the business.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
Tokmanni Group Oyj	14.4x	0.4x	45.78%	★★★★★★
Bytes Technology Group	25.0x	5.7x	0.77%	★★★★★☆
THG	NA	0.4x	42.18%	★★★★★☆
Nexus Industrial REIT	2.8x	3.4x	14.10%	★★★★☆☆
Norcros	7.8x	0.5x	-12.45%	★★★☆☆☆
Studsvik	21.1x	1.3x	33.51%	★★★☆☆☆
PowerCell Sweden	NA	4.4x	41.89%	★★★☆☆☆
NSI	NA	4.5x	39.12%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-134.80%	★★★☆☆☆

Click here to see the full list of 220 stocks from our Undervalued Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Aston Martin Lagonda Global Holdings (LSE:AML)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Aston Martin Lagonda Global Holdings is a luxury automotive manufacturer known for producing high-performance sports cars and grand tourers, with a market cap of approximately £1.20 billion.

Operations: Aston Martin Lagonda Global Holdings generates its revenue primarily from automotive sales, with a gross profit margin of 40.80% as of the latest period. The company incurs significant costs, including £922.6 million in cost of goods sold and £730.9 million in operating expenses for the same period.

PE: -4.5x

Aston Martin Lagonda Global Holdings, a small-cap luxury carmaker, recently reported H1 2024 sales of £603 million, down from £677.4 million last year, with a net loss widening to £207.8 million. Despite these challenges, insider confidence is evident with recent share purchases by executives. The company has set ambitious revenue targets of £2.5 billion for 2027-28 and will see leadership change on September 1, 2024, as Adrian Hallmark steps in as CEO.

• Click here and access our complete valuation analysis report to understand the dynamics of Aston Martin Lagonda Global Holdings.

• Evaluate Aston Martin Lagonda Global Holdings' historical performance by accessing our past performance report.

Marksans Pharma (NSEI:MARKSANS)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Marksans Pharma is a pharmaceutical company engaged in the development, manufacture, and marketing of generic pharmaceutical formulations with a market cap of ₹36.82 billion.

Operations: The company generates revenue primarily from its pharmaceuticals segment, with gross profit margins showing an upward trend, reaching 52.32% as of March 2024. Operating expenses and cost of goods sold are significant components impacting the overall profitability.

PE: 29.6x

Marksans Pharma reported a strong annual revenue growth, rising from INR 19.11 billion to INR 22.28 billion for the year ending March 31, 2024. Despite a slight dip in Q4 net income from INR 819.32 million to INR 782.9 million, the full-year net income increased to INR 3.14 billion from INR 2.66 billion previously. Insider confidence is evident as they purchased shares recently, indicating potential undervaluation and future growth prospects for this company in the pharmaceutical sector.

• Delve into the full analysis valuation report here for a deeper understanding of Marksans Pharma.

• Assess Marksans Pharma's past performance with our detailed historical performance reports.

Lumen Technologies (NYSE:LUMN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Lumen Technologies is a telecommunications company that provides a range of communication and network services to business and mass market segments, with a market cap of approximately $1.92 billion.

Operations: With primary revenue streams from Business ($11.16 billion) and Mass Markets ($2.95 billion), the company has experienced fluctuations in its gross profit margins, which ranged from 61.25% to 50.54% over the observed periods. Recent data indicates a gross profit margin of 50.54%.

PE: -0.2x

Lumen Technologies, a small-cap stock, has seen significant insider confidence with recent purchases. The company is undergoing a digital transformation through a strategic partnership with Microsoft, leveraging AI and cloud technologies to enhance network capabilities and reduce costs by over US$20 million in the next year. Despite reporting lower sales of US$3.29 billion for Q1 2024 compared to last year, earnings are forecasted to grow annually at 113.85%.

• Click to explore a detailed breakdown of our findings in Lumen Technologies' valuation report.

• Gain insights into Lumen Technologies' past trends and performance with our Past report.

Make It Happen

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Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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.

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