October 2024's Undervalued Small Caps In United States With Insider Activity

The United States market has shown robust performance recently, climbing 1.2% in the last week and achieving a 31% increase over the past year, with earnings projected to grow by 16% annually. In this dynamic environment, identifying small-cap stocks that are potentially undervalued and exhibit insider activity can provide unique opportunities for investors seeking growth potential within a thriving market landscape.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Hanover Bancorp	9.6x	2.2x	47.26%	★★★★★☆
Columbus McKinnon	21.9x	1.0x	40.52%	★★★★★☆
Scholastic	32.8x	0.5x	48.75%	★★★★☆☆
Franklin Financial Services	9.7x	1.9x	39.40%	★★★★☆☆
HighPeak Energy	12.1x	1.5x	34.99%	★★★★☆☆
German American Bancorp	13.8x	4.6x	48.25%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Orion Group Holdings	NA	0.3x	-117.28%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-580.89%	★★★☆☆☆
Industrial Logistics Properties Trust	NA	0.7x	-218.04%	★★★☆☆☆

Click here to see the full list of 54 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Reservoir Media (NasdaqGM:RSVR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Reservoir Media is a music company that operates in music publishing, recorded music, and other related segments with a market cap of approximately $0.49 billion.

Operations: The company generates revenue primarily from Music Publishing and Recorded Music, with Music Publishing contributing the largest share. Over recent periods, its gross profit margin has shown an upward trend, reaching 62.48% as of June 2024. Operating expenses have been significant, with general and administrative expenses consistently forming a substantial part of these costs.

PE: 25691.1x

Reservoir Media, a smaller player in the U.S. market, is currently under scrutiny for being undervalued. Recent investor activism by Irenic Capital Management highlights this perception, urging a strategic review to boost shareholder value. Despite reporting a net loss of US$0.35 million for Q1 2024, sales increased to US$34.32 million from last year's US$31.84 million. The company projects revenues between US$148-152 million for fiscal year ending March 2025, indicating potential growth despite current financial challenges.

• Navigate through the intricacies of Reservoir Media with our comprehensive valuation report here.

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

Bowlero (NYSE:BOWL)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Bowlero operates a chain of bowling entertainment centers and has a market capitalization of approximately $2.07 billion.

Operations: The company's primary revenue stream is from its bowling entertainment business, which generated $1.15 billion. The cost of goods sold (COGS) was $840.44 million, resulting in a gross profit of $314.18 million and a gross profit margin of 27.21%. Operating expenses amounted to $161.66 million, while non-operating expenses were $244.78 million, affecting the overall net income results over the periods analyzed.

PE: -18.7x

Bowlero, a company with a market cap under US$1 billion, shows potential despite recent challenges. For fiscal 2025, they project revenue growth between US$1.22 billion and US$1.28 billion. Although the latest quarter ended with a net loss of US$62 million, sales increased to US$284 million from last year's US$239 million. The company repurchased over 3 million shares for about $35 million in Q2 2024, indicating strategic confidence in its future trajectory amidst high-risk external funding sources.

• Click to explore a detailed breakdown of our findings in Bowlero's valuation report.

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

Delek US Holdings (NYSE:DK)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Delek US Holdings is an integrated downstream energy company with operations in refining, logistics, and retail, and a market cap of approximately $1.65 billion.

Operations: The company generates revenue primarily from its refining segment, which contributes $14.98 billion, followed by logistics at $1.05 billion and retail at $854.60 million. The cost of goods sold (COGS) consistently forms a significant portion of expenses, with the most recent data showing COGS at approximately $15.28 billion against revenues of about $16.22 billion for Q2 2024, resulting in a gross profit margin of 5.41%. Operating expenses include general and administrative costs that have fluctuated over time but remain a notable part of the expense structure, recently recorded at around $352.6 million for Q2 2024.

PE: -11.9x

Delek US Holdings, a smaller player in the energy sector, has faced financial challenges with a net loss of US$37.2 million for Q2 2024 compared to last year's figures. Despite this, they increased their equity buyback plan by US$400 million as of September 3, 2024, indicating potential confidence in future performance. The company also expects crude throughput between 290,000 and 305,000 bpd for Q3 2024. Their recent dividend increase reflects commitment to shareholder returns amidst operational adjustments.

• Take a closer look at Delek US Holdings' potential here in our valuation report.

• Evaluate Delek US Holdings' historical performance by accessing our past performance report.

Taking Advantage

• Investigate our full lineup of 54 Undervalued US Small Caps With Insider Buying right here.
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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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