Exploring May 2025's Undervalued Small Caps With Insider Action

The United States market has shown robust performance with a 5.1% increase over the last week and an 11% rise over the past year, buoyed by forecasts of annual earnings growth at 14%. In this dynamic environment, identifying small-cap stocks that are undervalued and exhibit insider activity can present intriguing opportunities for investors seeking potential growth.

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

Click here to see the full list of 103 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.

Hallador Energy (NasdaqCM:HNRG)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Hallador Energy is a company primarily engaged in the production of coal, with a market capitalization of approximately $0.21 billion.

Operations: Hallador Energy's revenue streams are primarily derived from its core operations, with the cost of goods sold (COGS) being a significant expense component. The company's net income margin has shown variability, reaching as high as 12.74% in recent periods but also experiencing negative margins at other times. Gross profit margin fluctuated between 15.56% and 31.92%, reflecting changes in operational efficiency and market conditions over time.

PE: -3.7x

Hallador Energy, a smaller company in the U.S., shows potential despite recent challenges. Their Q1 2025 earnings reveal a turnaround, with net income at US$9.98 million compared to a US$1.7 million loss the previous year. Revenue saw an increase to US$117.79 million from US$111.57 million year-on-year, highlighting growth prospects amid past volatility and external borrowing risks. Insider confidence is reflected in share purchases within the last six months, indicating belief in future performance improvements as revenue is forecasted to grow annually by 8.57%.

• Dive into the specifics of Hallador Energy here with our thorough valuation report.

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

Niagen Bioscience (NasdaqCM:NAGE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Niagen Bioscience is a company focused on the production and sale of health-related ingredients, consumer products, and analytical reference standards and services, with a market capitalization of $1.25 billion.

Operations: Niagen Bioscience generates revenue primarily from consumer products, ingredients, and analytical reference standards and services. Over recent periods, the company has shown a trend of increasing gross profit margin, reaching 62.51% in March 2025. Operating expenses include significant allocations to sales and marketing as well as general and administrative costs. The company's net income margin has improved over time, turning positive in September 2024 at 1.62%.

PE: 56.5x

Niagen Bioscience, a company in the expanding NAD+ market, recently raised its revenue guidance for 2025, anticipating net sales growth between 20% and 25%. The first quarter of 2025 saw sales jump to US$30.48 million from US$22.15 million the previous year, with net income reaching US$5.06 million. Despite its volatile share price over the past three months and reliance on external borrowing for funding, insider confidence is evident through recent stock purchases by executives. Niagen continues expanding its clinical footprint with nearly 600 clinics offering their patented NAD-boosting therapies while strengthening its intellectual property portfolio with new patents covering nicotinamide riboside derivatives.

• Click here to discover the nuances of Niagen Bioscience with our detailed analytical valuation report.

• Assess Niagen Bioscience's past performance with our detailed historical performance reports.

Quaker Chemical (NYSE:KWR)

Simply Wall St Value Rating: ★★★★★★

Overview: Quaker Chemical is a global provider of process fluids, lubricants, and coatings with operations across the Americas, Asia/Pacific, and Europe, Middle East and Africa (EMEA) regions.

Operations: The company generates revenue primarily from the Americas, Asia/Pacific, and EMEA regions. Over recent periods, its gross profit margin has shown an upward trend, reaching 37.63% by September 2024. Operating expenses are a significant component of costs, with general and administrative expenses being a major part of these.

PE: 20.2x

Quaker Chemical, a player in the specialty chemicals sector, recently declared a quarterly dividend of US$0.485 per share, signaling stable shareholder returns. Despite first-quarter sales dipping to US$442.91 million from last year's US$469.76 million and net income falling to US$12.92 million from US$35.23 million, insider confidence is evident through recent share repurchases totaling 312,997 shares for US$49.25 million by December 2024's end. The company forecasts revenue and earnings growth for 2025 amidst its external borrowing-based funding strategy.

• Unlock comprehensive insights into our analysis of Quaker Chemical stock in this valuation report.

• Review our historical performance report to gain insights into Quaker Chemical's's past performance.

Turning Ideas Into Actions

• Gain an insight into the universe of 103 Undervalued US Small Caps With Insider Buying by clicking here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Contemplating Other Strategies?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com