As of September 2025, the U.S. stock market has been reaching new heights, with major indices like the S&P 500 and Nasdaq posting consistent gains over recent weeks. While large-cap stocks have captured much of the spotlight, small-cap stocks are also drawing attention as the Russell 2000 index hit a record high before a slight pullback. In this environment, identifying opportunities in small-cap companies can be appealing due to their potential for growth and responsiveness to economic shifts such as interest rate changes.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| PCB Bancorp | 10.0x | 3.0x | 32.78% | ★★★★★☆ |
| Peoples Bancorp | 10.3x | 1.9x | 41.95% | ★★★★★☆ |
| Citizens & Northern | 11.7x | 2.9x | 39.27% | ★★★★☆☆ |
| Limbach Holdings | 34.7x | 2.2x | 32.98% | ★★★★☆☆ |
| First Northern Community Bancorp | 9.6x | 2.7x | 48.29% | ★★★★☆☆ |
| Thryv Holdings | NA | 0.7x | 32.12% | ★★★★☆☆ |
| Industrial Logistics Properties Trust | NA | 0.9x | 16.84% | ★★★★☆☆ |
| Shore Bancshares | 10.7x | 2.8x | -93.89% | ★★★☆☆☆ |
| Auburn National Bancorporation | 13.8x | 2.9x | 21.96% | ★★★☆☆☆ |
| Farmland Partners | 7.2x | 8.7x | -47.17% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
OneSpan (OSPN)
Simply Wall St Value Rating: ★★★★★☆
Overview: OneSpan focuses on providing digital agreements and security solutions, with a market cap of approximately $0.55 billion.
Operations: The company's revenue streams are primarily derived from Digital Agreements and Security Solutions, with the latter contributing more significantly to the overall revenue. The gross profit margin has shown variability, reaching as high as 74.26% in recent periods. Operating expenses include significant allocations towards sales and marketing, R&D, and general administrative costs.
PE: 10.1x
OneSpan's recent financials show a mixed performance, with Q2 2025 revenue slightly down at US$59.84 million compared to the previous year, though net income rose to US$8.34 million from US$6.55 million. Despite anticipated earnings decline over the next three years, insider confidence is evident with recent purchases by executives during 2025. The company’s addition to multiple Russell 2000 indices highlights its potential in niche markets, while its new credit facility offers flexibility for future growth initiatives.
- Dive into the specifics of OneSpan here with our thorough valuation report.
Evaluate OneSpan's historical performance by accessing our past performance report.
Cerus (CERS)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Cerus focuses on blood safety innovations and has a market cap of approximately $0.95 billion.
Operations: Cerus generates revenue primarily from its Blood Safety segment, with the latest reported revenue at $192.51 million. The company's cost of goods sold (COGS) for this period was $84.53 million, resulting in a gross profit of $107.98 million and a gross profit margin of 56.09%. Operating expenses are significant, with research and development costs accounting for a substantial portion at $64.96 million, contributing to a net loss of $18.88 million and a net income margin of -9.81%.
PE: -14.8x
Cerus, a company focused on pathogen-protected blood components, faces financial challenges with a net loss of US$5.71 million in Q2 2025, yet shows potential with revised revenue guidance up to US$203 million for the year. Recent insider confidence is evident as they increased their holdings over the past six months. The company secured an additional US$7.2 million contract from the U.S. Department of Defense for trauma treatment development, indicating strategic growth opportunities despite current unprofitability and reliance on external funding sources.
- Click here and access our complete valuation analysis report to understand the dynamics of Cerus.
Examine Cerus' past performance report to understand how it has performed in the past.
General American Investors Company (GAM)
Simply Wall St Value Rating: ★★★★☆☆
Overview: General American Investors Company is a closed-end investment management firm focusing on long-term capital appreciation through investments in publicly traded securities, with a market cap of approximately $1.06 billion.
Operations: GAM generates revenue primarily from its financial services segment, specifically closed-end funds, with the latest reported revenue at $27.65 million. The company consistently reports a gross profit margin of 100%, indicating that there are no direct costs associated with generating its revenue. Operating expenses, including general and administrative costs, make up a significant portion of expenditures, impacting net income margins which have shown variability over time.
PE: 7.5x
General American Investors Company, a smaller player in the investment landscape, recently reported US$12.56 million in revenue and US$150.38 million in net income for the first half of 2025. Despite lower profit margins compared to last year, insider confidence is evident with recent share purchases by executives. The company relies entirely on external borrowing for funding, which carries higher risk than customer deposits. With an experienced new board member onboard and ongoing dividend payments on preferred stock, future prospects remain cautiously optimistic amidst these dynamics.
Summing It All Up
- Click through to start exploring the rest of the 65 Undervalued US Small Caps With Insider Buying now.
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Want To Explore Some Alternatives?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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.
Valuation is complex, but we're here to simplify it.
Discover if Cerus might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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