Exploring 3 Undervalued Small Caps With Insider Activity In Your Region

Over the last 7 days, the United States market has experienced a 3.7% decline, although it has seen a longer-term increase of 6.9% over the past year, with earnings projected to grow by 14% annually. In this context, identifying small-cap stocks that are potentially undervalued and exhibit insider activity can offer unique opportunities for investors seeking to navigate these fluctuating market conditions.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Eagle Financial Services	7.3x	1.6x	41.13%	★★★★★☆
Shore Bancshares	10.0x	2.2x	11.42%	★★★★★☆
First United	9.2x	2.5x	49.95%	★★★★★☆
Quanex Building Products	73.4x	0.6x	47.72%	★★★★☆☆
German American Bancorp	16.9x	5.6x	49.84%	★★★☆☆☆
Citizens & Northern	11.9x	2.9x	45.75%	★★★☆☆☆
Columbus McKinnon	53.5x	0.5x	43.88%	★★★☆☆☆
Union Bankshares	14.6x	2.7x	34.02%	★★★☆☆☆
Franklin Financial Services	14.4x	2.3x	29.04%	★★★☆☆☆
Thryv Holdings	NA	0.8x	11.00%	★★★☆☆☆

Click here to see the full list of 68 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's dive into some prime choices out of from the screener.

SolarEdge Technologies (NasdaqGS:SEDG)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: SolarEdge Technologies is a company that designs and manufactures solar energy solutions, with a market cap of approximately $7.63 billion.

Operations: The company primarily generates revenue from its solar segment, which accounted for $842.44 million. Over the observed periods, the gross profit margin showed significant fluctuation, peaking at 36.64% in June 2018 and dropping to -92.84% by December 2024. Operating expenses have consistently increased over time, with research and development being a significant component of these costs.

PE: -0.5x

SolarEdge Technologies, a smaller player in the U.S. market, has seen its share price fluctuate significantly over the past three months. The company recently appointed Asaf Alperovitz as CFO, bringing experience from leading financial roles at major firms. Despite current unprofitability and reliance on external borrowing for funding, SolarEdge anticipates revenue growth of 16.77% annually. Their partnership with Summit Ridge Energy to supply domestically-manufactured inverters could enhance their market position as they expand solar projects exceeding 100MW starting April 2025.

• Navigate through the intricacies of SolarEdge Technologies with our comprehensive valuation report here.

• Gain insights into SolarEdge Technologies' past trends and performance with our Past report.

United Fire Group (NasdaqGS:UFCS)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: United Fire Group operates primarily in the property and casualty insurance sector with a market capitalization of approximately $0.67 billion.

Operations: The company's revenue primarily stems from its property and casualty insurance segment, with significant fluctuations in net income margin over the years. Notably, the net income margin experienced a low of -12.08% in 2020 and improved to 4.94% by late 2024.

PE: 11.3x

United Fire Group's recent performance highlights its potential as an undervalued investment. The company reported a significant revenue increase to US$1.25 billion for 2024, up from US$1.10 billion the previous year, alongside net income growth to US$61.96 million from a prior loss of US$29.7 million. Insider confidence is evident with George Milligan purchasing 3,500 shares worth approximately US$64,400 in February 2025, suggesting optimism about future prospects despite reliance on higher-risk external funding sources.

• Click here and access our complete valuation analysis report to understand the dynamics of United Fire Group.

• Review our historical performance report to gain insights into United Fire Group's's past performance.

Everus Construction Group (NYSE:ECG)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Everus Construction Group specializes in electrical and mechanical services as well as transmission and distribution, with a market cap of $3.25 billion.

Operations: The company's revenue streams primarily include Electrical & Mechanical (E&M) and Transmission and Distribution (T&D), contributing $2.03 billion and $837.15 million, respectively. Over recent periods, the gross profit margin has shown a trend of fluctuation, reaching 12.22% in September 2024 before adjusting to 11.91% by December 2024. Operating expenses have increased from $102.18 million in December 2021 to $149.54 million in December 2024, with general and administrative expenses being a significant component of these costs.

PE: 13.5x

Everus Construction Group, a smaller player in the construction industry, is drawing attention for its potential value. Despite a volatile share price recently and reliance on external borrowing, Everus reported sales of US$759.64 million in Q4 2024, up from US$635.72 million the previous year. Earnings guidance for 2025 suggests revenue could reach up to US$3.1 billion with net income between US$120-130 million, reflecting cautious optimism amidst anticipated earnings decline over three years by an average of 0.7% annually.

• Take a closer look at Everus Construction Group's potential here in our valuation report.

• Learn about Everus Construction Group's historical performance.

Key Takeaways

• Get an in-depth perspective on all 68 Undervalued US Small Caps With Insider Buying by using our screener 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.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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.

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