Stock Analysis

Exploring 3 Undervalued Small Caps With Insider Action In Global Markets

As the U.S. stock market navigates a landscape marked by tech-driven gains and fluctuating Treasury yields, small-cap stocks in the S&P 600 are drawing attention amidst broader economic uncertainties. In this environment, identifying promising small-cap opportunities often involves examining factors such as insider activity and market positioning, which can signal potential value in these lesser-known companies.

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

NamePEPSDiscount to Fair ValueValue Rating
Angel Oak Mortgage REIT6.3x4.1x33.47%★★★★★★
PCB Bancorp10.1x3.0x31.87%★★★★★☆
Tandem Diabetes CareNA0.8x49.96%★★★★★☆
Industrial Logistics Properties TrustNA0.9x21.39%★★★★★☆
Citizens & Northern11.6x2.9x40.78%★★★★☆☆
Thryv HoldingsNA0.7x30.65%★★★★☆☆
Tilray BrandsNA1.6x1.22%★★★★☆☆
Shore Bancshares10.5x2.7x-86.37%★★★☆☆☆
Limbach Holdings35.8x2.3x38.73%★★★☆☆☆
Farmland Partners7.0x8.5x-40.52%★★★☆☆☆

Click here to see the full list of 79 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's review some notable picks from our screened stocks.

MarketWise (MKTW)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: MarketWise operates as an internet information provider, offering a range of financial research and software services, with a focus on empowering individual investors.

Operations: MarketWise generates revenue primarily from its Internet Information Providers segment, with recent quarterly figures showing $358.12 million in revenue. The company has seen fluctuations in its gross profit margin, which reached 87.06% as of the latest period. Operating expenses have been significant, notably in sales and marketing and general and administrative categories. Net income margins have varied over time, reflecting changes in both operating efficiency and non-operating expenses.

PE: 8.0x

MarketWise has faced challenges, with revenue decreasing to US$79.95 million in Q2 2025 from US$105.05 million the previous year, and earnings expected to decline by 48.3% annually over the next three years. Despite being dropped from multiple growth benchmarks, insider confidence is evident through recent share repurchases totaling US$1.85 million for 117,673 shares between April and June 2025. The appointment of Erik Mickels as COO aims to enhance operational excellence amidst these hurdles.

MKTW Ownership Breakdown as at Sep 2025
MKTW Ownership Breakdown as at Sep 2025

Strategic Education (STRA)

Simply Wall St Value Rating: ★★★★★☆

Overview: Strategic Education is an education services company focusing on higher education and educational technology, with a market cap of approximately $2.05 billion.

Operations: The company generates revenue primarily from U.S. Higher Education, Australia/New Zealand, and Education Technology Services segments. Its net income margin has varied significantly over time, with a recent figure of 9.27%. Operating expenses are a substantial component of costs, including significant allocations to sales and marketing as well as general and administrative expenses.

PE: 17.0x

Strategic Education, a small-cap company, demonstrates potential as an undervalued stock. With earnings projected to grow 18.35% annually, it shows promising financial health despite relying solely on external borrowing for funding. Recent reports highlight sales of US$321 million in Q2 2025, up from US$312 million the previous year, with net income rising to US$32 million from US$30 million. Insider confidence is evident with share repurchases totaling 325,844 shares for US$28 million between April and June 2025.

STRA Share price vs Value as at Sep 2025
STRA Share price vs Value as at Sep 2025

Colony Bankcorp (CBAN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Colony Bankcorp operates primarily through its Banking, Mortgage Banking, and Small Business Specialty Lending divisions, with a market capitalization of $0.16 billion.

Operations: Colony Bankcorp's revenue is primarily derived from its Banking, Mortgage Banking, and Small Business Specialty Lending divisions. The company has experienced fluctuations in net income margin, which reached 22.11% by June 2025. Operating expenses have shown variability over time, with General & Administrative expenses being a significant component of the cost structure.

PE: 10.7x

Colony Bankcorp, a small player in the financial sector, has shown promising growth with net interest income rising to US$22.39 million for Q2 2025 from US$18.41 million last year. Net income also increased to US$7.98 million from US$5.47 million, indicating strong operational performance. Insider confidence is evident as insiders have been actively purchasing shares recently, suggesting belief in future prospects. The company repurchased 62,017 shares worth US$0.96 million between April and June 2025, enhancing shareholder value amid steady earnings growth projections of 22.58% annually.

CBAN Share price vs Value as at Sep 2025
CBAN Share price vs Value as at Sep 2025

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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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About NasdaqGM:MKTW

MarketWise

Operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally.

Average dividend payer with acceptable track record.

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