3 Undervalued Small Caps With Insider Action In Global Markets

Over the last 7 days, the United States market has remained flat, yet it has seen a 13% increase over the past year with earnings forecasted to grow by 15% annually. In this environment, identifying small-cap stocks that are undervalued and have insider activity can be a strategic approach for investors seeking opportunities in global markets.

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

Click here to see the full list of 78 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Kennedy-Wilson Holdings (KW)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Kennedy-Wilson Holdings is a global real estate investment company that focuses on acquiring, managing, and developing real estate properties, with a market cap of approximately $2.18 billion.

Operations: Kennedy-Wilson Holdings generates revenue primarily from consolidated operations and co-investments, with a significant portion of costs attributed to the cost of goods sold (COGS) and operating expenses. The company's gross profit margin has varied over time, reaching 70.68% in early 2025.

PE: -7.5x

Kennedy-Wilson Holdings, a small-cap player in the real estate sector, recently partnered with Kenedix and Hulic to acquire The Danforth in Seattle for US$173 million. This move strengthens their multifamily presence in the Pacific Northwest. Despite reporting a net loss of US$29.9 million for Q1 2025, insider confidence is evident with William McMorrow purchasing 200,000 shares for US$1.27 million between January and March 2025. Additionally, the company completed a buyback tranche worth US$6.39 million within this period, reflecting strategic capital management efforts amidst challenging financial conditions and reliance on external borrowing sources.

• Click here and access our complete valuation analysis report to understand the dynamics of Kennedy-Wilson Holdings.

• Review our historical performance report to gain insights into Kennedy-Wilson Holdings''s past performance.

Pebblebrook Hotel Trust (PEB)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Pebblebrook Hotel Trust is a real estate investment trust specializing in the ownership and management of upscale, full-service hotels and resorts, with a market capitalization of approximately $2.07 billion.

Operations: Pebblebrook Hotel Trust generates revenue primarily from its hotels and motels, with the most recent recorded revenue being $1.46 billion. The company's cost of goods sold (COGS) was $1.10 billion, resulting in a gross profit of $360.29 million and a gross profit margin of 24.69%. Operating expenses totaled $282.68 million, while non-operating expenses were $129.02 million, contributing to a net income loss of -$51.40 million for the period ending March 31, 2025.

PE: -25.7x

Pebblebrook Hotel Trust, a company in the hospitality industry, has caught attention as an undervalued investment opportunity. Despite reporting a net loss of US$32.95 million for Q1 2025 and revising its full-year outlook to reflect higher losses, insider confidence is evident with Jon Bortz purchasing 66,000 shares valued at US$790,680. The company has also repurchased over 2.7 million shares for US$33.41 million since February 2023, indicating strategic financial maneuvers amidst challenging profitability forecasts and reliance on external borrowing for funding.

• Get an in-depth perspective on Pebblebrook Hotel Trust's performance by reading our valuation report here.

• Assess Pebblebrook Hotel Trust's past performance with our detailed historical performance reports.

Vital Energy (VTLE)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Vital Energy is engaged in the exploration and production of oil and natural gas, with a market capitalization of approximately $1.36 billion.

Operations: The company generates revenue primarily from its exploration and production activities, with the latest reported figure at $1.98 billion. The gross profit margin has experienced fluctuations, reaching 67.36% in the most recent period. Cost of goods sold (COGS) is a significant expense, recorded at $646.97 million for the same timeframe.

PE: -5.3x

Vital Energy, a small company in the United States, is drawing attention with its financial activity and insider confidence. President Mikell Pigott recently purchased 5,500 shares for US$99,495, indicating strong belief in the company's potential. Despite reporting a net loss of US$18.84 million for Q1 2025, this was an improvement from the previous year's larger losses. The company forecasts significant revenue growth of 57% annually and projects oil production between 61 to 65 MBO/d for Q2 2025.

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

• Examine Vital Energy's past performance report to understand how it has performed in the past.

Taking Advantage

• Get an in-depth perspective on all 78 Undervalued US Small Caps With Insider Buying by using our screener here.
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Want To Explore Some Alternatives?

• 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.

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