As the U.S. stock market navigates a complex landscape marked by inflation concerns and fluctuating interest rate expectations, small-cap stocks are drawing attention amid broader economic shifts. With the S&P 600 index reflecting these dynamics, investors often seek opportunities in small-cap companies that demonstrate strong fundamentals and potential for growth, particularly when insider buying suggests confidence from those closest to the business.
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 | 38.72% | ★★★★★★ |
| PCB Bancorp | 10.1x | 3.0x | 31.87% | ★★★★★☆ |
| First United | 9.5x | 2.8x | 46.36% | ★★★★★☆ |
| Citizens & Northern | 11.3x | 2.8x | 43.50% | ★★★★☆☆ |
| Southside Bancshares | 10.7x | 3.6x | 36.65% | ★★★★☆☆ |
| S&T Bancorp | 11.1x | 3.8x | 39.15% | ★★★★☆☆ |
| Thryv Holdings | NA | 0.8x | 27.31% | ★★★★☆☆ |
| Lindblad Expeditions Holdings | NA | 1.0x | 14.67% | ★★★★☆☆ |
| Industrial Logistics Properties Trust | NA | 0.9x | 16.33% | ★★★★☆☆ |
| Farmland Partners | 7.1x | 8.6x | -41.87% | ★★★☆☆☆ |
Let's explore several standout options from the results in the screener.
ConnectOne Bancorp (CNOB)
Simply Wall St Value Rating: ★★★★☆☆
Overview: ConnectOne Bancorp operates as a community-focused banking institution providing a range of financial services, with a market capitalization of approximately $0.72 billion.
Operations: ConnectOne Bancorp generates revenue primarily from its community banking segment, which reported $241.85 million. The company's operating expenses are significant, with general and administrative costs reaching $132.82 million in the most recent period. Despite a gross profit margin of 100%, the net income margin has recently decreased to 12.96%.
PE: 39.0x
ConnectOne Bancorp, with nearly $14 billion in assets, has been navigating challenges and opportunities typical for smaller financial institutions. Recent insider confidence is highlighted by Stephen Boswell's purchase of 7,700 shares valued at US$171,232. Despite a net loss of US$20.29 million in Q2 2025 due to one-off items and increased loan charge-offs, the company remains focused on growth prospects following its merger with The First of Long Island Corporation. Inclusion in multiple Russell indices underscores its potential within growth benchmarks.
- Navigate through the intricacies of ConnectOne Bancorp with our comprehensive valuation report here.
S&T Bancorp (STBA)
Simply Wall St Value Rating: ★★★★☆☆
Overview: S&T Bancorp is a financial holding company that provides a range of community banking services, with operations focused on offering personal and commercial banking products.
Operations: Community Banking is the primary revenue stream, generating $388.49 million. Operating expenses are a significant cost factor, with general and administrative expenses reaching $179.79 million in the latest period. The company has consistently achieved a gross profit margin of 100%.
PE: 11.1x
S&T Bancorp, a company with a small market capitalization, recently displayed insider confidence through share purchases over the past few months. Despite facing net loan charge-offs of US$1.16 million in Q2 2025, its net interest income rose to US$86.57 million from US$83.59 million the previous year. The board increased its dividend by 3% to $0.34 per share, yielding an annualized rate of 3.61%. A new chief accounting officer brings extensive experience, potentially enhancing financial oversight and stability moving forward.
- Get an in-depth perspective on S&T Bancorp's performance by reading our valuation report here.
Evaluate S&T Bancorp's historical performance by accessing our past performance report.
Southside Bancshares (SBSI)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Southside Bancshares operates as a financial holding company providing a range of banking services, with a market capitalization of approximately $1.11 billion.
Operations: The company generates revenue primarily from its banking operations, with a recent quarterly revenue of $254.96 million. Operating expenses, largely driven by general and administrative costs amounting to $123.10 million in the latest quarter, impact the net income margin which was 33.56%. Gross profit margin consistently stands at 100%, indicating no reported cost of goods sold (COGS).
PE: 10.7x
Southside Bancshares, a compact player in the financial sector, shows potential for growth with an earnings forecast of 3.94% annually. Recent insider confidence is evident as insiders have been purchasing shares this year, suggesting belief in future prospects. The company completed a buyback of 843,812 shares for US$23.96 million by July 2025 and declared a quarterly dividend of US$0.36 per share on August 7, 2025. Despite slight declines in net income compared to last year, strategic moves like fixed-income offerings and leadership transitions could enhance its market position over time.
- Click here to discover the nuances of Southside Bancshares with our detailed analytical valuation report.
Assess Southside Bancshares' past performance with our detailed historical performance reports.
Next Steps
- Investigate our full lineup of 85 Undervalued US Small Caps With Insider Buying right here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.
Contemplating Other Strategies?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if S&T Bancorp might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com