Exploring 3 Undervalued Small Caps On US With Recent Insider Activity

In the last week, the United States market has been flat, yet over the past 12 months it has seen a robust rise of 21%, with earnings forecasted to grow by 14% annually. In this environment, identifying stocks that are potentially undervalued and exhibit recent insider activity can be key indicators for investors seeking opportunities in small-cap companies.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Name	PE	PS	Discount to Fair Value	Value Rating
McEwen Mining	3.9x	2.0x	45.86%	★★★★★☆
German American Bancorp	14.4x	4.8x	45.92%	★★★★☆☆
First United	13.0x	3.5x	30.88%	★★★★☆☆
Eagle Financial Services	7.5x	1.6x	35.97%	★★★★☆☆
Innovex International	9.0x	2.1x	46.15%	★★★★☆☆
Arrow Financial	15.3x	3.4x	37.93%	★★★☆☆☆
West Bancorporation	15.6x	4.7x	39.71%	★★★☆☆☆
Franklin Financial Services	14.9x	2.4x	21.98%	★★★☆☆☆
Guardian Pharmacy Services	NA	1.1x	31.35%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-72.35%	★★★☆☆☆

Click here to see the full list of 53 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Mid Penn Bancorp (NasdaqGM:MPB)

Simply Wall St Value Rating: ★★★★★★

Overview: Mid Penn Bancorp operates as a full-service commercial banking and trust business with a market capitalization of $0.33 billion.

Operations: The primary revenue stream is from its Full-Service Commercial Banking and Trust Business, generating $173.42 million. Operating expenses have been a significant cost factor, with general and administrative expenses reaching $87.49 million in recent periods. The net income margin has shown variability, recently recorded at 27.85%.

PE: 11.8x

Mid Penn Bancorp, a smaller financial entity in the U.S., has shown insider confidence with recent share purchases, indicating potential value. The company reported net income of US$13.23 million for Q4 2024, up from US$12.1 million a year ago, despite minor charge-offs of US$408,000. With forecasts suggesting earnings growth of 21.41% annually and consistent dividends at $0.20 per share, the bank balances growth prospects with shareholder returns amidst past dilution challenges.

• Click here and access our complete valuation analysis report to understand the dynamics of Mid Penn Bancorp.

• Evaluate Mid Penn Bancorp's historical performance by accessing our past performance report.

LTC Properties (NYSE:LTC)

Simply Wall St Value Rating: ★★★★★☆

Overview: LTC Properties is a real estate investment trust focused on investing in senior housing and health care properties, with a market capitalization of approximately $1.47 billion.

Operations: The company generates revenue primarily from its health care real estate investment trust (REIT) operations, with a recent quarterly revenue of $198.71 million. Its gross profit margin was 92.64%, reflecting efficient cost management relative to its revenue generation.

PE: 15.6x

LTC Properties, a smaller player in the U.S. market, has caught attention with its recent executive changes and consistent dividend payouts of US$0.19 per share for early 2025. The company relies solely on external borrowing for funding, which poses some risk; however, insider confidence remains strong as leadership transitions unfold with Pam Kessler and Clint Malin stepping up as Co-CEOs. Despite financial challenges like forecasted earnings decline of 2.1% annually over three years, LTC's strategic management shifts suggest potential resilience in navigating future hurdles.

• Unlock comprehensive insights into our analysis of LTC Properties stock in this valuation report.

• Assess LTC Properties' past performance with our detailed historical performance reports.

Magnera (NYSE:MAGN)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Magnera operates in the industrial sector, focusing on manufacturing and distributing specialized equipment, with a market cap of $2.35 billion.

Operations: Magnera generates revenue from the Americas and the Rest of World, with recent total revenue figures reaching $2.37 billion. The company's cost of goods sold (COGS) has been a significant expense, impacting its gross profit margin, which was 11.22% in the latest period. Operating expenses have remained relatively consistent, but non-operating expenses have increased notably in recent periods. This financial structure has influenced Magnera's net income margin to decline into negative territory at -8.69%.

PE: -3.9x

Magnera, a small cap company in the U.S., reported first-quarter sales of US$702 million, up from US$519 million the previous year. Despite this growth, they faced a net loss of US$60 million compared to last year's US$8 million loss. Insider confidence is evident as insiders have been purchasing shares recently. Although earnings are expected to grow by 106% annually, their reliance on external borrowing poses financial risks. Future prospects hinge on balancing growth with financial stability.

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

• Learn about Magnera's historical performance.

Summing It All Up

• Delve into our full catalog of 53 Undervalued US Small Caps With Insider Buying here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Want To Explore Some Alternatives?

• 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.

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