Undervalued Small Caps With Insider Action In US For January 2025

Over the last 7 days, the United States market has experienced a slight dip of 1.2%, yet it remains robust with a 23% increase over the past year and earnings projected to grow by 15% annually. In this dynamic environment, identifying small-cap stocks that are potentially undervalued and have notable insider activity can provide investors with unique opportunities for growth amidst broader market trends.

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

Name	PE	PS	Discount to Fair Value	Value Rating
German American Bancorp	14.2x	4.7x	49.71%	★★★★☆☆
Quanex Building Products	32.6x	0.8x	39.34%	★★★★☆☆
Franklin Financial Services	9.3x	1.8x	40.26%	★★★★☆☆
McEwen Mining	4.3x	2.2x	43.92%	★★★★☆☆
Innovex International	9.1x	2.1x	48.18%	★★★★☆☆
First United	12.9x	2.9x	49.19%	★★★☆☆☆
ProPetro Holding	NA	0.7x	14.24%	★★★☆☆☆
Tilray Brands	NA	1.3x	-159.43%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-89.95%	★★★☆☆☆
Sabre	NA	0.4x	-59.52%	★★★☆☆☆

Click here to see the full list of 41 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

German American Bancorp (NasdaqGS:GABC)

Simply Wall St Value Rating: ★★★★☆☆

Overview: German American Bancorp operates as a financial services holding company offering core banking, wealth management, and insurance services, with a market capitalization of approximately $1.06 billion.

Operations: The company's revenue is primarily driven by core banking services, with additional contributions from insurance and wealth management services. Operating expenses are significant, with general and administrative expenses consistently being the largest component. The net income margin has shown variability over time, reaching 36.22% in March 2023 before declining to 33.22% by September 2024.

PE: 14.2x

German American Bancorp, a smaller financial entity in the U.S., shows potential for growth with earnings projected to increase by 22.28% annually. Despite a slight dip in net income and EPS for Q3 2024, insider confidence is evident from recent executive appointments like Bradley C. Arnett as EVP and Chief Legal Officer starting January 2025. With consistent dividend payments of US$0.27 per share, the bank maintains shareholder value while navigating leadership transitions smoothly.

• Navigate through the intricacies of German American Bancorp with our comprehensive valuation report here.

• Review our historical performance report to gain insights into German American Bancorp's's past performance.

Heidrick & Struggles International (NasdaqGS:HSII)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Heidrick & Struggles International is a global executive search and consulting firm specializing in leadership advisory services, with operations spanning on-demand talent solutions, consulting, and executive search across Europe, the Americas, and Asia Pacific; it has a market capitalization of approximately $0.64 billion.

Operations: The company generates revenue primarily from Executive Search services across the Americas, Europe, and Asia Pacific, supplemented by On-Demand Talent and Heidrick Consulting. Over recent periods, the gross profit margin has fluctuated around 25%, reflecting variations in cost management relative to revenue growth. Operating expenses are a significant component of costs, with general and administrative expenses consistently being a major part of these expenditures.

PE: 24.1x

Heidrick & Struggles International, a company with an evolving financial landscape, has seen insider confidence as Thomas Monahan purchased 7,500 shares for approximately US$302,825. Despite challenges such as lower profit margins and reliance on external borrowing, the firm forecasts a 29% annual earnings growth. Recent executive changes include appointing Nirupam Sinha as CFO in January 2025. The company's Q3 revenue increased to US$282.82 million from US$267.9 million last year but net income slightly decreased to US$14.83 million from US$14.99 million over the same period.

• Unlock comprehensive insights into our analysis of Heidrick & Struggles International stock in this valuation report.

• Evaluate Heidrick & Struggles International's historical performance by accessing our past performance report.

Innovex International (NYSE:INVX)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Innovex International specializes in providing oil well equipment and services, with a market cap of $2.45 billion.

Operations: Innovex International generates revenue primarily from oil well equipment and services, with recent figures showing $543.31 million in this segment. The company's cost of goods sold (COGS) was $347.36 million, leading to a gross profit margin of 36.07%. Operating expenses include significant general and administrative costs, which were $97.82 million in the latest period analyzed.

PE: 9.1x

Innovex International, a smaller company in the U.S. market, is drawing attention with its significant earnings growth despite revenue declining by 1.3% over the past year. In Q3 2024, sales reached US$151.82 million, up from US$139.09 million a year prior, while net income soared to US$82.59 million from US$15.37 million previously—a remarkable leap reflecting high-quality earnings impacted by large one-off items. Insider confidence is evident as insiders have recently increased their share purchases within this period, suggesting optimism about future prospects despite reliance on higher-risk external borrowing for funding without customer deposits.

• Delve into the full analysis valuation report here for a deeper understanding of Innovex International.

• Gain insights into Innovex International's past trends and performance with our Past report.

Key Takeaways

• Click here to access our complete index of 41 Undervalued US Small Caps With Insider Buying.
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Curious About Other Options?

• 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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