Exploring 3 Promising Undervalued Small Caps In US With Insider Activity

The United States market has experienced a flat performance over the last week but has shown significant growth of 31% over the past year, with earnings projected to increase by 15% annually in the coming years. In this context, identifying promising small-cap stocks with notable insider activity can be an effective strategy for investors seeking opportunities that may offer potential value amidst these market conditions.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Hanover Bancorp	9.9x	2.3x	45.67%	★★★★★☆
Franklin Financial Services	10.4x	2.0x	34.04%	★★★★☆☆
HighPeak Energy	11.3x	1.6x	34.11%	★★★★☆☆
German American Bancorp	14.9x	5.0x	46.15%	★★★☆☆☆
Citizens & Northern	13.4x	2.9x	44.31%	★★★☆☆☆
Granite Ridge Resources	14.0x	2.1x	26.76%	★★★☆☆☆
Orion Group Holdings	NA	0.4x	-197.81%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-44.27%	★★★☆☆☆
Sabre	NA	0.4x	-33.09%	★★★☆☆☆

Click here to see the full list of 42 stocks from our Undervalued US Small Caps With Insider Buying screener.

Here we highlight a subset of our preferred stocks from the screener.

Civista Bancshares (NasdaqCM:CIVB)

Simply Wall St Value Rating: ★★★★★☆

Overview: Civista Bancshares operates as a financial holding company providing community banking services, with a market capitalization of approximately $0.21 billion.

Operations: Civista Bancshares generates revenue primarily from its banking operations, with a recent figure of $146.57 million. The company's operating expenses are significant, with general and administrative expenses reaching $88.19 million in the latest period. Notably, the net income margin has shown fluctuations over time, currently standing at 20.90%.

PE: 10.7x

Civista Bancshares, a smaller company in the U.S. financial sector, recently reported a decline in net interest income and net income for Q3 2024 compared to the previous year, with earnings per share dropping from US$0.66 to US$0.53. Despite these challenges, insider confidence has been evident through recent share purchases by insiders earlier this year. The company also affirmed a quarterly dividend of US$0.16 per share payable on November 19, 2024, reflecting ongoing shareholder returns amidst financial adjustments and projected earnings growth of 7% annually.

• Get an in-depth perspective on Civista Bancshares' performance by reading our valuation report here.

• Learn about Civista Bancshares' historical performance.

Advantage Solutions (NasdaqGS:ADV)

Simply Wall St Value Rating: ★★★★★☆

Overview: Advantage Solutions is a leading provider of outsourced sales and marketing services to consumer goods companies and retailers, with a market capitalization of approximately $2.08 billion.

Operations: Advantage Solutions' revenue is driven by its operations, with significant costs stemming from COGS and operating expenses. The company has experienced fluctuations in net income margin, notably reaching -36.65% in September 2023 and improving to -1.50% by December 2023. Gross profit margin has varied, peaking at 23.28% in December 2016 and declining to around 13%-14% more recently.

PE: -5.9x

Advantage Solutions, a provider of sales and marketing solutions, recently underwent a significant rebranding to unify its services under one cohesive brand. Despite reporting a net loss of US$100.84 million in Q2 2024, the company remains focused on growth through strategic restructuring into three business units. Between April and July 2024, they repurchased 6 million shares for US$22.07 million, signaling insider confidence in their long-term strategy amidst challenging financial conditions.

• Take a closer look at Advantage Solutions' potential here in our valuation report.

• Review our historical performance report to gain insights into Advantage Solutions''s past performance.

Ultra Clean Holdings (NasdaqGS:UCTT)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Ultra Clean Holdings specializes in the design, engineering, and manufacturing of critical subsystems for the semiconductor capital equipment industry, with a market cap of approximately $1.88 billion.

Operations: The company generates revenue primarily from its Products segment, which significantly outweighs the Services segment. Over recent periods, there has been a noticeable fluctuation in net income margin, with it reaching as high as 8.26% and dropping to negative values at times. Operating expenses consistently represent a substantial portion of costs, impacting overall profitability.

PE: 451.1x

Ultra Clean Holdings, a smaller company in the U.S. market, is capturing attention with its improving financials and insider confidence. Recent earnings for Q3 2024 showed revenue climbing to US$540.4 million from US$435 million a year ago, while net loss narrowed significantly to US$2.3 million from US$14.5 million. The company's forecasted earnings growth of 42% annually suggests potential for future expansion despite reliance on higher-risk external funding sources. Insiders have been purchasing shares recently, indicating their belief in the company's prospects ahead of expected Q4 revenue between US$535 and US$585 million.

• Dive into the specifics of Ultra Clean Holdings here with our thorough valuation report.

• Gain insights into Ultra Clean Holdings' historical performance by reviewing our past performance report.

Where To Now?

• Gain an insight into the universe of 42 Undervalued US Small Caps With Insider Buying by clicking here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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