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Discover Undervalued Small Caps With Insider Action In United States September 2024

The market in the United States has experienced a notable increase, rising 1.8% over the last week and 32% over the past year, with earnings forecasted to grow by 15% annually. In this thriving environment, identifying small-cap stocks that are undervalued and exhibit insider activity can present unique opportunities for investors seeking growth potential.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Columbus McKinnon

21.3x

1.0x

41.88%

★★★★★★

Citizens & Northern

13.0x

2.9x

43.38%

★★★★☆☆

MYR Group

33.1x

0.5x

44.32%

★★★★☆☆

Franklin Financial Services

9.8x

1.9x

38.91%

★★★★☆☆

German American Bancorp

13.8x

4.6x

46.98%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

Orion Group Holdings

NA

0.3x

-89.93%

★★★☆☆☆

Sabre

NA

0.4x

-58.54%

★★★☆☆☆

Delek US Holdings

NA

0.1x

-219.02%

★★★☆☆☆

Industrial Logistics Properties Trust

NA

0.7x

-249.77%

★★★☆☆☆

Click here to see the full list of 51 stocks from our Undervalued US Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

Columbus McKinnon

Simply Wall St Value Rating: ★★★★★★

Overview: Columbus McKinnon designs, manufactures, and markets hoists, cranes, actuators, and lifting equipment for various industrial applications with a market cap of approximately $1.37 billion.

Operations: Columbus McKinnon generates revenue primarily from its Machinery & Industrial Equipment segment, amounting to $1.02 billion. The company's gross profit margin has shown a trend of gradual improvement, reaching 37.08% as of the latest period ending September 2024.

PE: 21.3x

Columbus McKinnon, a small-cap company in the U.S., recently announced leadership changes with Jon Adams set to take over as President, Americas. The firm reported Q1 2025 earnings of US$239.73 million, slightly up from US$235.49 million a year ago, but net income dipped to US$8.63 million from US$9.28 million. Despite no recent share buybacks and moderate dividend payouts of $0.07 per share, insider confidence is evident through continued executive involvement and strategic guidance for modest sales growth in fiscal 2025.

NasdaqGS:CMCO Share price vs Value as at Sep 2024
NasdaqGS:CMCO Share price vs Value as at Sep 2024

MaxLinear

Simply Wall St Value Rating: ★★★★☆☆

Overview: MaxLinear is a company that designs and supplies semiconductor products, with a market cap of approximately $2.80 billion.

Operations: The primary revenue stream for MaxLinear comes from its semiconductor segment, generating $448.14 million. The company has experienced fluctuations in its net income margin, which was -0.4238% as of the latest period ending 2024-09-25. Gross profit margin stood at 53.99% during the same period, with significant operating expenses primarily driven by R&D and general & administrative costs totaling $382.74 million and $129.87 million respectively.

PE: -6.6x

MaxLinear, a small tech company, has recently shown insider confidence with Kishore Seendripu purchasing 108,303 shares worth US$1.4 million between July and September 2024. Despite reporting a net loss of US$39.27 million for Q2 2024 and revenue dropping to US$91.99 million from US$183.94 million the previous year, the company is making strides with its Panther III storage accelerator. This product significantly reduces CPU core requirements and enhances data storage efficiency, positioning MaxLinear well in the growing data storage market driven by AI advancements.

NasdaqGS:MXL Share price vs Value as at Sep 2024
NasdaqGS:MXL Share price vs Value as at Sep 2024

Varex Imaging

Simply Wall St Value Rating: ★★★★☆☆

Overview: Varex Imaging specializes in designing and manufacturing X-ray imaging components for medical and industrial applications, with a market cap of approximately $0.66 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's gross profit margin has shown variability, with the most recent figure being 32.46%.

PE: 13.9x

Varex Imaging, a small company in the medical imaging sector, has recently seen insider confidence with CFO Shubham Maheshwari purchasing 10,000 shares for US$108,200. Despite being dropped from multiple S&P indices on September 7, 2024, Varex reported third-quarter sales of US$209.1 million and net income of US$1.4 million. The company's earnings guidance for Q4 projects revenues between US$190 million and US$210 million. With forecasted annual earnings growth of 16%, Varex presents an intriguing investment opportunity amidst its current challenges.

NasdaqGS:VREX Share price vs Value as at Sep 2024
NasdaqGS:VREX Share price vs Value as at Sep 2024

Next Steps

Curious About Other Options?

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.

Companies discussed in this article include NasdaqGS:CMCO NasdaqGS:MXL and NasdaqGS:VREX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com