Undervalued Small Caps In United States With Insider Buying

The United States market has shown robust performance recently, climbing 1.5% in the last week and an impressive 33% over the past year, with earnings projected to grow by 16% annually. In this dynamic environment, identifying small-cap stocks that are potentially undervalued and exhibit insider buying can be a strategic approach for investors seeking opportunities aligned with current market trends.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Hanover Bancorp	9.4x	2.2x	48.05%	★★★★★☆
Columbus McKinnon	22.0x	1.0x	40.08%	★★★★★☆
Citizens & Northern	13.0x	2.9x	42.48%	★★★★☆☆
HighPeak Energy	12.1x	1.5x	35.42%	★★★★☆☆
German American Bancorp	14.2x	4.8x	46.56%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Orion Group Holdings	NA	0.3x	-102.79%	★★★☆☆☆
Sabre	NA	0.4x	-33.51%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-752.06%	★★★☆☆☆
Industrial Logistics Properties Trust	NA	0.7x	-217.32%	★★★☆☆☆

Click here to see the full list of 52 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Phibro Animal Health (NasdaqGM:PAHC)

Simply Wall St Value Rating: ★★★★★☆

Overview: Phibro Animal Health is a company that specializes in animal health products, mineral nutrition, and performance products, with a market cap of approximately $0.58 billion.

Operations: The company generates revenue primarily from Animal Health, followed by Mineral Nutrition and Performance Products segments. Over the years, the gross profit margin has shown a trend of gradual increase, reaching 30.82% in recent periods. Operating expenses have consistently been a significant component of costs, with general and administrative expenses forming a substantial part.

PE: 407.2x

Phibro Animal Health, a smaller player in the U.S. market, shows insider confidence with recent share purchases. Despite a challenging financial position, relying heavily on external borrowing, they project net sales of US$1.04 billion to US$1.09 billion for fiscal 2025. Recent earnings reveal mixed results: quarterly sales rose to US$273 million from last year, yet net income dropped significantly. With anticipated growth in their Animal Health segment and ongoing dividend payments, Phibro's future holds potential amidst current volatility.

• Delve into the full analysis valuation report here for a deeper understanding of Phibro Animal Health.

• Review our historical performance report to gain insights into Phibro Animal Health's's past performance.

Reservoir Media (NasdaqGM:RSVR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Reservoir Media is a music company engaged in music publishing and recorded music operations, with a market cap of $0.47 billion.

Operations: Reservoir Media generates revenue primarily from Music Publishing and Recorded Music, with recent figures showing $99.40 million and $41.61 million, respectively. The company's gross profit margin has shown an upward trend, reaching 62.48% by the latest period ending October 2024. Operating expenses have increased alongside revenue growth, with general and administrative expenses being a significant component of these costs.

PE: 27741.4x

Reservoir Media, a smaller company in the U.S. market, has caught attention due to perceived low valuation. Recent investor activism by Irenic Capital emphasizes this belief, urging strategic reviews to boost shareholder value. Despite reporting a net loss of US$0.35 million for Q1 2024, sales increased to US$34.32 million from the previous year’s US$31.84 million. Insider confidence is evident through share purchases over recent months, suggesting potential optimism about future growth prospects despite current financial challenges.

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

• Explore historical data to track Reservoir Media's performance over time in our Past section.

MaxLinear (NasdaqGS:MXL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: MaxLinear is a company that designs and sells semiconductor products, with a focus on broadband communications, connectivity, and infrastructure markets, and has a market cap of approximately $2.51 billion.

Operations: MaxLinear's revenue primarily comes from its semiconductor segment, with recent revenue reported at $448.14 million. The company has experienced fluctuations in its gross profit margin, which recently stood at 53.99%. Operating expenses are significant, with research and development being a major component, recently amounting to $252.86 million.

PE: -6.4x

MaxLinear, a tech-focused company in the U.S., has recently unveiled MaxAI™, an innovative AI framework designed to enhance user experiences and reduce costs for service providers. Despite facing a challenging financial period with reduced revenue and increased losses, insider confidence remains strong as Co-Founder Kishore Seendripu purchased 108,303 shares valued at approximately US$1.4 million. This move suggests belief in the company's potential amidst its volatile stock performance. Future growth prospects are bolstered by projected earnings growth of 82% annually.

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

• Learn about MaxLinear's historical performance.

Make It Happen

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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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