Insider Buying Highlights 3 Undervalued Small Caps Across Regions

Over the last 7 days, the United States market has remained flat, although it is up 10% over the past year with earnings forecast to grow by 15% annually. In this environment, identifying stocks that are potentially undervalued can be particularly appealing to investors seeking opportunities for growth and value.

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

Click here to see the full list of 85 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Advantage Solutions (ADV)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Advantage Solutions operates as a provider of outsourced sales and marketing services, with a market cap of approximately $1.33 billion.

Operations: Branded, Retailer, and Experiential Services contribute significantly to the company's revenue streams. The gross profit margin has shown variability over time, with a recent value of 14.09%. Operating expenses include notable allocations for general and administrative costs, which were $181.02 million in the latest period analyzed.

PE: -1.3x

Advantage Solutions, a smaller company in the U.S. market, has seen insider confidence with David Peacock acquiring 75,000 shares for US$86,123. Despite recent volatility and a net loss of US$56 million in Q1 2025, the company completed a share buyback program totaling US$53.97 million since November 2021. Leadership changes include Andrea Young transitioning out as COO by June 30, 2025. While currently unprofitable with reliance on external borrowing for funding, these strategic moves may position Advantage Solutions for potential future growth opportunities.

• Dive into the specifics of Advantage Solutions here with our thorough valuation report.

• Evaluate Advantage Solutions' historical performance by accessing our past performance report.

RLJ Lodging Trust (RLJ)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: RLJ Lodging Trust is a real estate investment trust that focuses on acquiring premium-branded, focused-service and compact full-service hotels, with a market capitalization of approximately $2.27 billion.

Operations: RLJ Lodging Trust generates its revenue predominantly from its hotel operations, with the latest reported revenue at $1.37 billion. The company's cost of goods sold (COGS) is significant, amounting to $988.29 million, contributing to a gross profit margin of 28.05%. Operating expenses are also notable, including general and administrative expenses totaling $52.35 million in the most recent period.

PE: 26.7x

RLJ Lodging Trust, a player in the hospitality sector, is navigating challenges with its earnings expected to decline by 27.1% annually over the next three years. Despite this, insider confidence is evident from recent share repurchases totaling US$44.54 million through May 2025. The company declared dividends of US$0.15 per common share and US$0.4875 on preferred shares for Q2 2025, signaling stability amid financial pressures from high-risk external borrowing sources and insufficient interest coverage by earnings.

• Click here to discover the nuances of RLJ Lodging Trust with our detailed analytical valuation report.

• Gain insights into RLJ Lodging Trust's historical performance by reviewing our past performance report.

TXO Partners (TXO)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: TXO Partners is engaged in the exploration and production of oil, natural gas, and natural gas liquids with a market capitalization of $1.23 billion.

Operations: The company's primary revenue stream is from the exploration and production of oil, natural gas, and natural gas liquids. Over recent periods, it has experienced fluctuations in net income margin, with a notable peak at 34.21% in early 2023 before declining to negative values later. Operating expenses have consistently been a significant portion of costs, impacting overall profitability.

PE: 55.6x

TXO Partners, a smaller company in the U.S. market, has recently drawn attention with significant insider confidence as their Director purchased 878,000 shares for US$17.56 million, boosting their stake by 28%. Despite a recent follow-on equity offering raising US$175 million at a slight discount per share, the company's earnings have faced pressure with net income dropping to US$2.42 million from US$10.27 million year-over-year for Q1 2025. Their strategic focus on growth is underscored by projected earnings expansion of over 50% annually and new board member Lawrence Massaro bringing extensive industry expertise to guide future endeavors amidst higher-risk funding challenges without customer deposits.

• Click here and access our complete valuation analysis report to understand the dynamics of TXO Partners.

• Understand TXO Partners' track record by examining our Past report.

Taking Advantage

• Gain an insight into the universe of 85 Undervalued US Small Caps With Insider Buying by clicking here.
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Searching for a Fresh Perspective?

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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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