Exploring 3 Undervalued Small Caps With Significant Insider Activity In Global Markets
In recent weeks, the U.S. stock market has experienced a surge, with major indices like the Dow Jones and S&P 500 reaching record highs following signals of potential interest rate cuts from Federal Reserve Chair Jerome Powell. This environment of anticipated lower borrowing costs has renewed interest in small-cap stocks, which often benefit from such economic conditions due to their sensitivity to changes in interest rates and refinancing risks. In this context, identifying promising small-cap stocks involves looking for those with strong fundamentals and significant insider activity, as these factors can indicate confidence in the company's future prospects amidst shifting market dynamics.
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 | 6.2x | 4.0x | 33.96% | ★★★★★★ |
| First United | 10.0x | 2.9x | 43.57% | ★★★★★☆ |
| Peoples Bancorp | 10.5x | 2.0x | 42.95% | ★★★★★☆ |
| S&T Bancorp | 11.5x | 3.9x | 37.30% | ★★★★☆☆ |
| Thryv Holdings | NA | 0.8x | 23.84% | ★★★★☆☆ |
| GEN Restaurant Group | NA | 0.1x | -623.46% | ★★★★☆☆ |
| Tilray Brands | NA | 1.5x | 4.14% | ★★★★☆☆ |
| Industrial Logistics Properties Trust | NA | 0.9x | 17.91% | ★★★★☆☆ |
| Shore Bancshares | 10.4x | 2.7x | -84.65% | ★★★☆☆☆ |
| Farmland Partners | 7.3x | 8.8x | -46.09% | ★★★☆☆☆ |
Let's explore several standout options from the results in the screener.
Burke & Herbert Financial Services (BHRB)
Simply Wall St Value Rating: ★★★★★☆
Overview: Burke & Herbert Financial Services operates primarily in the community banking sector with a focus on providing financial services, and it has a market cap of $0.35 billion.
Operations: BHRB generates revenue primarily from community banking, with a recent quarterly revenue of $330.00 million. The company's net income margin has shown variability, recently recorded at 31.40%. Operating expenses are significant, with general and administrative expenses being a major component. Gross profit margin remains consistently high at 100%.
PE: 9.2x
Burke & Herbert Financial Services, a company with a focus on commercial banking and treasury management, has been showing signs of potential value. With net interest income rising to US$74.23 million in Q2 2025 from US$59.77 million the previous year and net income reaching US$29.9 million, it indicates financial improvement. Insider confidence is evident as Julian Barnwell purchased 6,000 shares for approximately US$374,100 between April and June 2025. Despite no recent share buybacks, the company's strategic hires aim to bolster growth capacity in commercial banking sectors.
- Dive into the specifics of Burke & Herbert Financial Services here with our thorough valuation report.
Learn about Burke & Herbert Financial Services' historical performance.
Peoples Bancorp (PEBO)
Simply Wall St Value Rating: ★★★★★☆
Overview: Peoples Bancorp is a financial holding company that primarily operates in the community banking sector, with a market capitalization of approximately $1.08 billion.
Operations: The company generates its revenue primarily through community banking, with a recent quarterly revenue of $554.42 million. The gross profit margin has shown fluctuations, peaking at 100% and most recently recorded at 98.73%. Operating expenses are significant, with general and administrative expenses consistently being the largest component.
PE: 10.5x
Peoples Bancorp, a smaller company in the financial sector, exhibits potential for growth with earnings projected to increase by 9.77% annually. Recently, insider confidence was evident as they completed a share buyback of 488,423 shares for US$13.85 million since January 2021. Despite a decline in net income to US$21.21 million from US$29.01 million year-over-year for Q2 2025, the company maintains shareholder value through consistent dividends of US$0.41 per share declared in July 2025.
- Click here to discover the nuances of Peoples Bancorp with our detailed analytical valuation report.
Assess Peoples Bancorp's past performance with our detailed historical performance reports.
Byline Bancorp (BY)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Byline Bancorp operates as a bank holding company providing a range of banking products and services, with a focus on community banking, and has a market capitalization of approximately $0.8 billion.
Operations: Byline Bancorp generates its revenue primarily from its banking operations, with a recent quarterly revenue of $384.59 million. The company consistently reports a gross profit margin of 100%, indicating that all reported revenues contribute to gross profit. Operating expenses are significant, with general and administrative expenses being the largest component, recently amounting to $199.51 million in the latest quarter. The net income margin has shown variability over time but was recorded at 30.94% in the most recent period analyzed.
PE: 11.2x
Byline Bancorp, a smaller U.S. financial institution, has shown insider confidence through recent share purchases. Their second quarter of 2025 reported net interest income increased to US$95.97 million from US$86.53 million the prior year, while net income slightly rose to US$30.08 million from US$29.67 million a year earlier. The company recently completed a private placement of US$75 million in subordinated notes and repurchased 543,599 shares for approximately US$13.1 million between April and June 2025, reflecting strategic capital management amidst evolving market conditions.
- Click to explore a detailed breakdown of our findings in Byline Bancorp's valuation report.
Gain insights into Byline Bancorp's historical performance by reviewing our past performance report.
Seize The Opportunity
- Embark on your investment journey to our 85 Undervalued US Small Caps With Insider Buying selection here.
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Seeking Other Investments?
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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.
Valuation is complex, but we're here to simplify it.
Discover if Burke & Herbert Financial Services 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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