Exploring 3 Undervalued Small Caps With Insider Action In US

The United States market has shown robust performance, climbing 2.3% in the last 7 days and up 35% over the past year, with earnings forecasted to grow by 15% annually. In such a thriving environment, identifying small-cap stocks with insider activity can be an intriguing strategy for investors seeking potential opportunities in undervalued segments.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Hanover Bancorp	10.2x	2.3x	43.28%	★★★★★☆
Civista Bancshares	11.6x	2.4x	33.99%	★★★★★☆
ChoiceOne Financial Services	12.9x	3.7x	49.06%	★★★★☆☆
Franklin Financial Services	10.4x	2.1x	32.96%	★★★★☆☆
HighPeak Energy	11.0x	1.6x	37.31%	★★★★☆☆
Citizens & Northern	14.5x	3.1x	38.84%	★★★☆☆☆
Envela	22.3x	0.9x	24.97%	★★★☆☆☆
Orion Group Holdings	NA	0.4x	-212.37%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-57.56%	★★★☆☆☆

Click here to see the full list of 42 stocks from our Undervalued US Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

Alerus Financial (NasdaqCM:ALRS)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Alerus Financial is a diversified financial services company providing wealth management, retirement and benefit services, and corporate administration, with a market cap of approximately $0.53 billion.

Operations: The company generates revenue primarily from Wealth Management and Retirement and Benefit Services, with Segment Adjustment contributing significantly. Over the years, operating expenses have been a major component of costs, with General & Administrative Expenses consistently being the largest expense category. The net income margin has shown variability, peaking at 22.17% in early 2021 before declining to 1.93% by late 2024.

PE: 177.9x

Alerus Financial, a smaller company in the U.S. market, recently reported a dip in net income to US$5.21 million for Q3 2024 from US$9.16 million the previous year, with basic earnings per share dropping to US$0.26 from US$0.46. Despite these challenges, insider confidence is evident as board member Jeffrey Bolton joins with substantial finance expertise. The company's strategic focus on dividends was highlighted by a 5% increase announced in August 2024, reflecting commitment to shareholder returns amidst financial fluctuations and low bad loan allowances at 82%.

• Unlock comprehensive insights into our analysis of Alerus Financial stock in this valuation report.

• Examine Alerus Financial's past performance report to understand how it has performed in the past.

Univest Financial (NasdaqGS:UVSP)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Univest Financial operates as a diversified financial services company offering banking, insurance, and wealth management services, with a market capitalization of approximately $0.77 billion.

Operations: The company's primary revenue streams are from banking, insurance, and wealth management. Operating expenses have been consistently increasing over time, with general and administrative expenses being a significant component. The net income margin shows variability, reaching as high as 34.66% in 2021 but experiencing fluctuations thereafter.

PE: 12.8x

Univest Financial, a smaller company in the U.S. market, has shown signs of being undervalued with recent insider confidence through share repurchases. Between July and September 2024, they bought back 156,728 shares for US$4.15 million, completing a larger buyback plan initiated in 2013. Their third-quarter earnings reveal steady performance with net income rising to US$18.58 million from US$17.02 million last year and an increased dividend of $0.21 per share announced for November payout suggests stability amidst growth opportunities.

• Dive into the specifics of Univest Financial here with our thorough valuation report.

• Explore historical data to track Univest Financial's performance over time in our Past section.

Tompkins Financial (NYSEAM:TMP)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Tompkins Financial is a financial services company that provides banking, insurance, and wealth management services with a market cap of approximately $1.04 billion.

Operations: Tompkins Financial's revenue has consistently been recorded as gross profit, with operating expenses being a significant portion of its cost structure. The net income margin has shown variability, peaking at 31.11% in March 2021 and declining to 3.29% by March 2024. General and administrative expenses are a major part of the operating costs, often exceeding $140 million in recent periods.

PE: 16.9x

Tompkins Financial, a small cap financial institution, has demonstrated strong insider confidence with significant share purchases over recent months. Despite a low allowance for bad loans at 89%, the company projects a promising earnings growth rate of 12.89% annually. Recent earnings reports show net income of US$18.64 million for Q3 2024, reversing last year's loss of US$33.35 million, and an increased quarterly dividend to US$0.62 per share reflects financial stability and shareholder value focus.

• Click here to discover the nuances of Tompkins Financial with our detailed analytical valuation report.

• Gain insights into Tompkins Financial's historical performance by reviewing our past performance report.

Where To Now?

• Unlock our comprehensive list of 42 Undervalued US Small Caps With Insider Buying by clicking here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com