Stock Analysis

3 Undervalued Small Caps With Insider Buying Across Various Regions

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Over the last 7 days, the United States market has experienced a 3.6% decline, despite a robust 17% rise over the past year and forecasts of annual earnings growth at 14%. In this dynamic environment, identifying stocks that are potentially undervalued with insider buying can be key to finding opportunities for investors looking to capitalize on market fluctuations.

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

NamePEPSDiscount to Fair ValueValue Rating
McEwen Mining3.7x1.9x48.95%★★★★★☆
German American Bancorp13.9x4.6x47.70%★★★★☆☆
Quanex Building Products28.7x0.7x42.29%★★★★☆☆
Eagle Financial Services7.4x1.6x37.56%★★★★☆☆
Citizens & Northern12.6x3.1x41.02%★★★☆☆☆
Arrow Financial15.1x3.3x38.98%★★★☆☆☆
West Bancorporation15.6x4.8x36.14%★★★☆☆☆
Limbach Holdings35.6x1.8x48.36%★★★☆☆☆
Alpha Metallurgical Resources5.3x0.6x-440.52%★★★☆☆☆
Delek US HoldingsNA0.1x-47.53%★★★☆☆☆

Click here to see the full list of 53 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Limbach Holdings (NasdaqCM:LMB)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Limbach Holdings specializes in providing mechanical, electrical, and plumbing services with a focus on both owner direct and general contractor relationships, and has a market cap of approximately $0.17 billion.

Operations: Limbach Holdings generates revenue primarily through Owner Direct Relationships ($328.65 million) and General Contractor Relationships ($189.18 million). The company's gross profit margin has shown an upward trend, reaching 25.88% as of September 2024, with operating expenses consistently comprising a significant portion of costs.

PE: 35.6x

Limbach Holdings, a U.S. company, stands out in the small-cap category with insider confidence shown through recent share purchases by insiders in January 2025. Despite its higher-risk funding structure reliant on external borrowing, the company is projected to see earnings grow at an impressive 21% annually. Limbach's participation in investor conferences highlights their proactive engagement with potential investors and industry peers. These factors suggest promising prospects for future growth and value realization.

NasdaqCM:LMB Share price vs Value as at Feb 2025

Array Technologies (NasdaqGM:ARRY)

Simply Wall St Value Rating: ★★★★★☆

Overview: Array Technologies specializes in manufacturing and supplying solar tracking systems for utility-scale projects, with a market cap of approximately $3.40 billion.

Operations: The company generates revenue primarily from Array Legacy Operations and STI Operations, with recent quarterly revenues reaching $982.19 million. The gross profit margin has shown an upward trend, peaking at 30.50% in the latest period reported.

PE: -7.0x

Array Technologies, a player in renewable energy, is navigating through executive changes with recent appointments of key leaders like Gina Gunning and Darin Green. Despite its high debt levels and reliance on external borrowing, the company's earnings are projected to grow significantly by 64.93% annually. Insider confidence is evident as insiders have been purchasing shares over the past year, signaling potential value. Upcoming Q4 results may provide further insights into its financial trajectory amidst these strategic leadership shifts.

NasdaqGM:ARRY Share price vs Value as at Feb 2025

Utz Brands (NYSE:UTZ)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Utz Brands is engaged in the manufacturing, distribution, marketing, and sale of snack food products with a market capitalization of approximately $2.21 billion.

Operations: The company generates revenue primarily from the manufacturing, distribution, marketing, and sale of snack food products with a recent revenue figure of $1.41 billion. Its cost structure is significantly impacted by the cost of goods sold (COGS), which was approximately $914.50 million in the latest period. The gross profit margin has seen fluctuations over time but recently reached 35.11%.

PE: 74.0x

Utz Brands, a snack food company in the U.S., has shown signs of financial improvement with net income reaching US$15.97 million for 2024, reversing a previous loss. Recent insider confidence is evident as insiders have been purchasing shares throughout the year, indicating belief in the company's potential. The opening of their expansive Rice Distribution Center suggests strategic growth ambitions. With projected low-single-digit sales growth for 2025, Utz aims to capitalize on its branded snacks segment despite higher-risk funding challenges.

NYSE:UTZ Share price vs Value as at Feb 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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