3 Top Undervalued Small Caps In United States With Insider Activity

Over the last 7 days, the market has remained flat. As for the longer term, the market has risen 32% in the past 12 months and earnings are forecast to grow by 15% annually. In this environment, identifying undervalued small-cap stocks with insider activity can present unique opportunities for investors looking to capitalize on potential growth.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Columbus McKinnon	22.1x	1.0x	39.87%	★★★★★☆
Thryv Holdings	NA	0.7x	26.33%	★★★★★☆
Citizens & Northern	12.9x	2.9x	43.78%	★★★★☆☆
MYR Group	34.1x	0.5x	42.61%	★★★★☆☆
Franklin Financial Services	9.8x	1.9x	39.21%	★★★★☆☆
German American Bancorp	13.9x	4.6x	46.75%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Orion Group Holdings	NA	0.3x	-102.15%	★★★☆☆☆
Sabre	NA	0.5x	-72.61%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-220.20%	★★★☆☆☆

Click here to see the full list of 54 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Columbus McKinnon (NasdaqGS:CMCO)

Simply Wall St Value Rating: ★★★★★☆

Overview: Columbus McKinnon is a company specializing in the design, manufacturing, and marketing of material handling products and systems with a market cap of approximately $1.34 billion.

Operations: The company generates revenue primarily from its Machinery & Industrial Equipment segment, amounting to $1.02 billion. The gross profit margin has shown an upward trend, reaching 37.08% in the latest period ending September 2024. Operating expenses include significant allocations to sales and marketing ($108.13 million) and general & administrative expenses ($105.42 million).

PE: 22.1x

Columbus McKinnon, a smaller U.S. company, is currently undervalued with earnings forecasted to grow nearly 30% annually. Despite net income dipping slightly to US$8.63 million in Q1 2024 from US$9.28 million the previous year, insider confidence is evident as executives have shown interest in share purchases recently. The company projects modest sales growth for fiscal 2025 and maintains a quarterly dividend of US$0.07 per share, highlighting its commitment to returning value to shareholders amidst leadership changes and strategic adjustments.

• Get an in-depth perspective on Columbus McKinnon's performance by reading our valuation report here.

• Review our historical performance report to gain insights into Columbus McKinnon's's past performance.

MaxLinear (NasdaqGS:MXL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: MaxLinear is a company specializing in the design and production of semiconductors with a market cap of $2.50 billion.

Operations: MaxLinear's primary revenue stream is from its semiconductor segment, which generated $448.14 million. The company's gross profit margin was 53.99%, with significant operating expenses including R&D at $252.86 million and general & administrative costs at $129.87 million for the latest reporting period ending 2024-09-26.

PE: -6.8x

MaxLinear, a U.S. small-cap stock, has recently garnered attention due to significant insider confidence, with CEO Kishore Seendripu purchasing 108,303 shares valued at approximately US$1.4 million between July and August 2024. The company showcased its Panther III storage accelerator at multiple conferences in August and September 2024, highlighting substantial cost savings and performance improvements over traditional solutions. Despite reporting a net loss of US$39 million for Q2 2024, MaxLinear's innovative product offerings position it well for future growth in the expanding data storage market.

• Delve into the full analysis valuation report here for a deeper understanding of MaxLinear.

• Learn about MaxLinear's historical performance.

Varex Imaging (NasdaqGS:VREX)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Varex Imaging specializes in manufacturing X-ray imaging components for medical and industrial applications, with a market cap of approximately $0.78 billion.

Operations: Varex Imaging generates revenue primarily from its Medical and Industrial segments, with recent figures showing $601 million and $231.7 million respectively. The company experienced fluctuations in net income margin, reaching 5.40% as of September 2023 after previously recording negative margins in 2020 and early 2021. Gross profit margin has varied over the years, most recently at 32.49%.

PE: 14.1x

Varex Imaging, a smaller company in the medical imaging sector, has recently seen insider confidence with CFO Shubham Maheshwari purchasing 10,000 shares worth US$108,200. Despite being dropped from several S&P indices on September 7, 2024, Varex reported Q3 sales of US$209.1 million and net income of US$1.4 million. However, earnings have declined compared to the previous year. The company's earnings are projected to grow by 16.15% annually but face challenges with high-risk funding sources and insufficient coverage of interest payments by earnings.

• Dive into the specifics of Varex Imaging here with our thorough valuation report.

• Evaluate Varex Imaging's historical performance by accessing our past performance report.

Next Steps

• Gain an insight into the universe of 54 Undervalued US Small Caps With Insider Buying by clicking here.
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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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