As September 2025 unfolds, the U.S. stock market faces renewed volatility with major indices like the S&P 500 and Nasdaq Composite starting the month on a downward trend amid ongoing tech sector challenges and tariff uncertainties. Despite these headwinds, small-cap stocks remain an area of interest for investors seeking opportunities in undervalued segments that may benefit from insider activity and broader economic shifts.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Angel Oak Mortgage REIT | 6.1x | 3.9x | 35.36% | ★★★★★★ |
| PCB Bancorp | 10.1x | 3.0x | 31.53% | ★★★★★☆ |
| Peoples Bancorp | 10.4x | 1.9x | 42.77% | ★★★★★☆ |
| Tandem Diabetes Care | NA | 0.9x | 47.88% | ★★★★★☆ |
| Industrial Logistics Properties Trust | NA | 0.9x | 20.32% | ★★★★★☆ |
| Citizens & Northern | 11.8x | 2.9x | 40.03% | ★★★★☆☆ |
| Thryv Holdings | NA | 0.7x | 30.87% | ★★★★☆☆ |
| Shore Bancshares | 10.6x | 2.7x | -87.37% | ★★★☆☆☆ |
| Auburn National Bancorporation | 13.5x | 2.9x | 23.19% | ★★★☆☆☆ |
| Limbach Holdings | 36.6x | 2.3x | 45.11% | ★★★☆☆☆ |
We're going to check out a few of the best picks from our screener tool.
Alerus Financial (ALRS)
Simply Wall St Value Rating: ★★★★★☆
Overview: Alerus Financial operates as a diversified financial services company, providing banking, wealth advisory, retirement and benefit services with a market capitalization of $0.53 billion.
Operations: Alerus Financial's revenue is primarily derived from Banking including Mortgage, Wealth Advisory Services, and Retirement and Benefit Services. The company has experienced fluctuations in net income margin, which was 0.07% at the end of 2023 but increased to 0.15% by mid-2025. Operating expenses have been a significant component of their cost structure, with General & Administrative Expenses consistently being the largest expense category over several periods.
PE: 15.0x
Alerus Financial, a small company in the U.S., has shown a significant increase in financial performance, with net income rising to US$20.25 million for Q2 2025 from US$6.21 million a year ago. Despite being dropped from several Russell indices by June 2025, insider confidence is evident through share purchases over the past year. The board declared an increased dividend of $0.21 per share on August 27, 2025, reflecting potential for future growth despite recent challenges.
Avidbank Holdings (AVBH)
Simply Wall St Value Rating: ★★★★★★
Overview: Avidbank Holdings operates as a bank providing a range of financial services and products, with a market cap of $0.06 billion.
Operations: Avidbank Holdings primarily generates revenue from its banking operations, which reached $82.09 million in the latest period. The company consistently reports a gross profit margin of 100%, indicating no cost of goods sold recorded. Operating expenses are significant, with general and administrative expenses being the largest component, totaling $44.38 million recently. The net income margin has shown variability over time, most recently at 28.67%.
PE: 11.6x
Avidbank Holdings has been making waves with a recent IPO raising US$60.03 million, positioning it as a promising player among smaller firms. Their financials show growth, with Q2 net income rising to US$5.8 million from last year's US$3.47 million, reflecting improved earnings per share from continuing operations at US$0.77 up from US$0.47 previously. Insider confidence is notable as executives have been purchasing shares consistently over the past year, signaling strong belief in future prospects despite shareholder dilution concerns earlier this year.
- Click here and access our complete valuation analysis report to understand the dynamics of Avidbank Holdings.
Understand Avidbank Holdings' track record by examining our Past report.
Trinity Capital (TRIN)
Simply Wall St Value Rating: ★★★★★☆
Overview: Trinity Capital is a financial services company specializing in providing venture capital to growth-stage companies, with a market cap of approximately $0.68 billion.
Operations: The company primarily generates revenue through its venture capital segment, with recent figures reaching $254.89 million. Operating expenses have shown a steady increase over the periods, with the latest reported at $63.47 million. The net income margin has fluctuated significantly, peaking at 1.73% and most recently recorded at 0.54%. Gross profit margins have consistently been reported at 100%, indicating that all revenue contributes directly to gross profit without any direct costs of goods sold being deducted.
PE: 8.2x
Trinity Capital, a smaller player in the financial sector, recently reported solid earnings growth with second-quarter revenue hitting US$69.48 million, up from US$54.64 million the previous year. Despite high-risk funding through external borrowing and no customer deposits, they show potential for growth with new leadership appointments aimed at expanding their Equipment Finance business in Europe. The withdrawal of a US$250 million equity offering suggests strategic financial maneuvering amid industry challenges and opportunities for value realization remain as earnings are projected to grow annually by 4.97%.
- Click here to discover the nuances of Trinity Capital with our detailed analytical valuation report.
Evaluate Trinity Capital's historical performance by accessing our past performance report.
Key Takeaways
- Delve into our full catalog of 82 Undervalued US Small Caps With Insider Buying here.
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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.
Valuation is complex, but we're here to simplify it.
Discover if Trinity Capital might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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