Undervalued Small Caps With Insider Action To Watch In October 2025

As the U.S. stock market continues its upward trajectory, with major indices like the S&P 500 marking consecutive months of gains, investors are closely monitoring potential impacts from economic uncertainties such as a looming government shutdown and fluctuating consumer confidence. In this dynamic environment, small-cap stocks often present unique opportunities due to their growth potential and agility in adapting to changing market conditions.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Alerus Financial	14.6x	2.2x	44.66%	★★★★★☆
PCB Bancorp	9.7x	2.9x	34.16%	★★★★★☆
Limbach Holdings	32.0x	2.0x	38.02%	★★★★★☆
Peoples Bancorp	10.2x	1.9x	42.74%	★★★★★☆
Industrial Logistics Properties Trust	NA	0.9x	21.93%	★★★★★☆
Citizens & Northern	11.5x	2.8x	39.91%	★★★★☆☆
First Northern Community Bancorp	9.8x	2.8x	47.38%	★★★★☆☆
Thryv Holdings	NA	0.7x	32.40%	★★★★☆☆
Shore Bancshares	10.2x	2.6x	-85.00%	★★★☆☆☆
Farmland Partners	7.2x	8.7x	-46.76%	★★★☆☆☆

Click here to see the full list of 66 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

FTAI Infrastructure (FIP)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: FTAI Infrastructure is involved in the operation and development of infrastructure assets, including railroads and ports, with a market capitalization of approximately $1.45 billion.

Operations: The company's revenue is primarily generated from Railroad and Ports and Terminals, with Jefferson Terminal contributing $81.93 million. Over time, the gross profit margin has shown variability, reaching 31.15% by mid-2025. Operating expenses have been significant, with notable costs in depreciation and amortization consistently impacting financial results.

PE: -3.2x

FTAI Infrastructure, a smaller U.S. company, recently reported Q2 2025 sales of US$122.29 million, up from US$84.89 million the previous year, yet faced a net loss of US$79.82 million. Despite revenue growth forecasts of 37% annually, profitability remains elusive for at least three years due to high-risk external borrowing and less than one year cash runway. Insider confidence is evident with recent purchases in July 2025, hinting at potential future value despite current challenges like delayed SEC filings and share price volatility.

• Click here to discover the nuances of FTAI Infrastructure with our detailed analytical valuation report.

• Review our historical performance report to gain insights into FTAI Infrastructure's's past performance.

Industrial Logistics Properties Trust (ILPT)

Simply Wall St Value Rating: ★★★★★☆

Overview: Industrial Logistics Properties Trust focuses on the ownership and leasing of industrial and logistics properties, with a market cap of approximately $0.42 billion.

Operations: The company generates revenue primarily from the ownership and leasing of properties, with a recent quarterly revenue of $443.47 million. It has experienced fluctuations in its net income margin, which was -20.73% as of the latest data point. The gross profit margin shows a trend around 86%, reflecting efficiency in managing costs relative to sales over time.

PE: -4.2x

Industrial Logistics Properties Trust, a smaller company in the logistics sector, recently posted Q2 2025 earnings with sales of US$112.1 million and a reduced net loss of US$21.31 million compared to last year. Despite current unprofitability and reliance on external borrowing, insider confidence is evident through increased share purchases over recent months. The company raised its quarterly dividend from US$0.01 to US$0.05 per share, signaling potential optimism for future performance amidst financial challenges.

• Get an in-depth perspective on Industrial Logistics Properties Trust's performance by reading our valuation report here.

• Evaluate Industrial Logistics Properties Trust's historical performance by accessing our past performance report.

Dine Brands Global (DIN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Dine Brands Global operates as a franchisor and operator of restaurant chains, including IHOP and Applebee's, with a market cap of $1.13 billion.

Operations: The company's revenue streams are primarily derived from franchise operations, with significant contributions from advertising and rental operations. Over the observed periods, the gross profit margin showed variability, peaking at 60.64% and reaching a low of 37.93%. Operating expenses consistently impact profitability, with general and administrative expenses being a notable component.

PE: 8.5x

Dine Brands Global, a company with a focus on external borrowing, has seen insider confidence as their CEO and Applebee’s President purchased 4,523 shares for US$99,990 in the past year. The company's recent financials show quarterly revenue growth to US$230.78 million from US$206.27 million year-over-year, despite net income dropping to US$13.81 million from US$23.18 million. They declared a quarterly dividend of $0.51 per share and completed significant share repurchases worth $124.28 million since February 2022, indicating strategic capital allocation amidst leadership transitions and evolving financial strategies.

• Delve into the full analysis valuation report here for a deeper understanding of Dine Brands Global.

• Assess Dine Brands Global's past performance with our detailed historical performance reports.

Seize The Opportunity

• Click this link to deep-dive into the 66 companies within our Undervalued US Small Caps With Insider Buying screener.
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Looking For Alternative Opportunities?

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• 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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