In the last week, the United States market has remained flat, yet over the past 12 months, it has experienced a significant rise of 23%, with earnings forecasted to grow by 15% annually. In this context, identifying stocks that are perceived as undervalued and exhibit insider activity can be an intriguing strategy for investors seeking opportunities in smaller companies amidst these dynamic market conditions.

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

Click here to see the full list of 40 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Mid Penn Bancorp

Simply Wall St Value Rating: ★★★★★☆

Overview: Mid Penn Bancorp operates as a full-service commercial banking and trust business with a market capitalization of $0.34 billion.

Operations: The primary revenue stream is from its full-service commercial banking and trust business, generating $173.42 million. Operating expenses are significant, with general and administrative expenses accounting for a large portion at $87.49 million in the most recent period. The net income margin shows variability but was 27.85% in the latest quarter, indicating profitability after covering all operating costs.

PE: 11.3x

Mid Penn Bancorp, a smaller financial institution, has shown potential for growth with net income rising to US$12.3 million in Q3 2024 from US$9.24 million the previous year. Despite recent shareholder dilution through a $70 million equity offering at a discount, insider confidence is evident with share purchases over the past year. The company's earnings are projected to grow by 23.7% annually, indicating promising future prospects amidst its industry context of steady dividends and strategic expansions.

• Click here to discover the nuances of Mid Penn Bancorp with our detailed analytical valuation report.

• Assess Mid Penn Bancorp's past performance with our detailed historical performance reports.

Tompkins Financial

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Tompkins Financial is a diversified financial services company with operations in banking, insurance, and wealth management, and it has a market capitalization of approximately $1.05 billion.

Operations: Tompkins Financial generates revenue primarily from its Banking and Insurance segments, with additional contributions from Wealth Management. The company has experienced fluctuations in its net income margin, which reached a high of 31.13% in early 2021 but later decreased to 4.39% by the end of 2023. Operating expenses have been significant, with General & Administrative expenses consistently being a major component.

PE: 14.4x

Tompkins Financial, a smaller U.S. financial institution, has shown resilience with its recent performance. In Q3 2024, the company reported a net income of US$18.64 million compared to a net loss last year, highlighting improved profitability. Earnings per share also turned positive at US$1.31 from a previous loss. Despite no recent share repurchases, insider confidence remains steady with consistent dividend increases; the latest being US$0.62 per share in November 2024. Future earnings are projected to grow annually by approximately 12%.

• Dive into the specifics of Tompkins Financial here with our thorough valuation report.

• Gain insights into Tompkins Financial's past trends and performance with our Past report.

McEwen Mining

Simply Wall St Value Rating: ★★★★☆☆

Overview: McEwen Mining is a mining company engaged in the exploration and production of precious metals, with operations primarily in Canada, the USA, and Mexico, and has a market cap of approximately $0.66 billion.

Operations: McEwen Mining generates revenue primarily from operations in the USA, Canada, and Mexico. The company's gross profit margin has experienced fluctuations, reaching a high of 45.01% in December 2015 before declining to -60.09% by June 2023. Operating expenses are significant, with general and administrative expenses consistently contributing to the cost structure.

PE: 4.3x

McEwen Mining, a small mining company, is gaining attention due to its Grey Fox deposit in Ontario, Canada. Recent high-grade assay results from the Whiskey Jack zone have highlighted the potential for significant gold production. The company's exploration budget of US$9.7 million for 2025 aims to expand on these promising findings. Despite facing financial challenges with a net loss of US$2.08 million in Q3 2024 and reliance on external borrowing, insider confidence remains strong with recent share purchases by key figures within the company.

• Unlock comprehensive insights into our analysis of McEwen Mining stock in this valuation report.

• Understand McEwen Mining's track record by examining our Past report.

Key Takeaways

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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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.

Companies discussed in this article include NasdaqGM:MPB NYSEAM:TMP and NYSE:MUX.

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