Stock Analysis

Insider Action In Undervalued Small Caps Across Regions April 2025

NYSE:LC
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Over the last 7 days, the United States market has risen by 4.1%, contributing to a year-long climb of 7.9%, with earnings anticipated to grow by 14% annually in the coming years. In this context, identifying small-cap stocks that are potentially undervalued and show insider activity can offer intriguing opportunities for investors seeking growth in a dynamic market environment.

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

NamePEPSDiscount to Fair ValueValue Rating
MVB Financial10.8x1.5x36.75%★★★★★★
Shore Bancshares10.0x2.2x11.44%★★★★★☆
Flowco Holdings6.3x0.9x37.96%★★★★★☆
Thryv HoldingsNA0.7x25.32%★★★★☆☆
Forestar Group6.0x0.7x-415.27%★★★★☆☆
Franklin Financial Services15.9x2.5x34.76%★★★☆☆☆
PDF Solutions178.9x4.0x20.32%★★★☆☆☆
Delek US HoldingsNA0.1x-13.07%★★★☆☆☆
Tandem Diabetes CareNA1.3x-3444.14%★★★☆☆☆
Titan MachineryNA0.1x-338.47%★★★☆☆☆

Click here to see the full list of 89 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Herbalife (NYSE:HLF)

Simply Wall St Value Rating: ★★★★★☆

Overview: Herbalife is a global nutrition company that develops and sells dietary supplements and personal care products, with a market cap of approximately $1.41 billion.

Operations: Herbalife's revenue streams are primarily derived from markets such as India, Mexico, and the United States. The company has experienced fluctuations in its net income margin over recent periods, with a notable decrease to 1.73% as of September 2024 before rising to 5.09% by December 2024. Operating expenses consistently form a significant portion of costs, with general and administrative expenses being the largest component within this category.

PE: 2.8x

Herbalife, a smaller company in the investment landscape, has faced challenges with volatile share prices and higher-risk funding sources. Despite these hurdles, insider confidence is evident through recent share purchases in early 2025. The company's net income surged to US$177.9 million for Q4 2024 from US$10.2 million a year prior, demonstrating financial resilience despite declining sales forecasts. Herbalife's partnership with LA Galaxy underscores its commitment to community impact and wellness initiatives, aligning with its broader mission amidst leadership transitions slated for May 2025.

NYSE:HLF Share price vs Value as at Apr 2025
NYSE:HLF Share price vs Value as at Apr 2025

LendingClub (NYSE:LC)

Simply Wall St Value Rating: ★★★★☆☆

Overview: LendingClub operates as a digital marketplace bank that offers personal loans and other financial services, with a market capitalization of approximately $1.34 billion.

Operations: Lending Club's revenue primarily comes from its bank operations, contributing $1.13 billion, while its parent entity adds $50.85 million. The company has experienced fluctuations in gross profit margin, reaching as high as 106.86% and dropping to 23.76%. Operating expenses are significant, with sales and marketing being a major component alongside general and administrative costs.

PE: 24.0x

LendingClub is gaining attention for its potential as an undervalued stock, especially after insider confidence was shown by Michael Zeisser's purchase of 20,000 shares for US$257,600 in early 2025. The company reported a full-year net income increase to US$51.33 million from US$38.94 million the previous year, despite a slight dip in quarterly earnings. Recent strategic moves include acquiring a San Francisco property for US$74.5 million to serve as their future headquarters, indicating growth ambitions and asset appreciation potential.

NYSE:LC Share price vs Value as at Apr 2025
NYSE:LC Share price vs Value as at Apr 2025

Oxford Industries (NYSE:OXM)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Oxford Industries is a lifestyle apparel company with operations across several brands, including Tommy Bahama and Lilly Pulitzer, and has a market capitalization of approximately $1.70 billion.

Operations: The company's primary revenue streams are from Tommy Bahama, Lilly Pulitzer, Johnny Was, and Emerging Brands. Over recent periods, the gross profit margin has shown a trend of fluctuation, reaching 63.35% in early 2024 before slightly declining to 62.94% by early 2025. Operating expenses have consistently been a significant portion of the cost structure, with general and administrative expenses being the largest component within this category.

PE: 8.2x

Oxford Industries, known for its apparel brands, is positioned as an intriguing small-cap opportunity. Recent insider confidence is evident with share purchases, signaling potential value recognition within the company. Despite a forecasted earnings decline of 3% annually over the next three years and reliance on external borrowing, Oxford's strategic moves include a $100 million share repurchase program and a 3% dividend increase to $0.69 per share. These initiatives reflect management's commitment to shareholder returns amidst challenging market conditions.

NYSE:OXM Share price vs Value as at Apr 2025
NYSE:OXM Share price vs Value as at Apr 2025

Summing It All Up

Interested In Other Possibilities?

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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