Over the last 7 days, the United States market has experienced a 3.9% decline, though it has risen by 17% over the past year with earnings forecasted to grow by 14% annually. In such dynamic conditions, identifying stocks that are potentially undervalued and have insider buying activity can be an intriguing strategy for investors seeking opportunities in small-cap companies.

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

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

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

First Mid Bancshares

Simply Wall St Value Rating: ★★★★★☆

Overview: First Mid Bancshares operates as a financial holding company providing banking services, with a focus on traditional community banking, and has a market cap of approximately $0.64 billion.

Operations: The primary revenue stream is from banking, with a gross profit margin consistently at 100%. Operating expenses primarily comprise general and administrative costs, which reached $169.37 million in the latest period. The net income margin has shown variability, reaching 24.70% recently.

PE: 11.5x

First Mid Bancshares, a dynamic player in the financial sector, shows promising growth potential with earnings expected to rise 7.14% annually. Their recent earnings report for Q4 2024 highlighted a net income increase to US$19.17 million from US$18.07 million the previous year, alongside stable dividends of US$0.24 per share set for February 28, 2025. Despite facing increased net charge-offs at US$2.24 million, insider confidence remains strong with recent purchases indicating belief in future prospects within this competitive market space.

• Dive into the specifics of First Mid Bancshares here with our thorough valuation report.

• Understand First Mid Bancshares' track record by examining our Past report.

Old Second Bancorp

Simply Wall St Value Rating: ★★★★★★

Overview: Old Second Bancorp operates as a community banking organization, providing a range of financial services and products, with a market cap of approximately $0.87 billion.

Operations: The company generates revenue primarily from community banking, with recent figures showing $272.70 million. Operating expenses are significant, with general and administrative expenses being a major component at $128.75 million in the latest period. The net income margin has shown variability, reaching 34.79% in the most recent quarter of 2023-09-30 before slightly decreasing to 31.27% by the end of 2024-12-31.

PE: 9.5x

Old Second Bancorp, a smaller player in the U.S. financial sector, is exploring growth through the acquisition of Bancorp Financial. Despite an expected average earnings decline of 0.9% annually over the next three years, recent insider confidence is evident with share purchases in December 2024. The bank reported Q4 2024 net income of US$19.11 million, slightly up from US$18.23 million a year prior, and declared a US$0.06 dividend per share for early 2025 distribution.

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

• Gain insights into Old Second Bancorp's past trends and performance with our Past report.

Armada Hoffler Properties

Simply Wall St Value Rating: ★★★★★☆

Overview: Armada Hoffler Properties is a diversified real estate company engaged in office, retail, multifamily residential real estate, and general contracting services with a market capitalization of approximately $1.45 billion.

Operations: Armada Hoffler Properties derives its revenue primarily from general contracting and real estate services, contributing $433.18 million, followed by retail real estate at $103.44 million. The company's gross profit margin has shown variability, reaching a high of 48.25% in December 2021 before declining to 27.96% by the end of 2024. Operating expenses have also increased over time, impacting net income margins which have fluctuated significantly, with recent periods showing negative values due to rising costs and non-operating expenses.

PE: 23.3x

Armada Hoffler Properties, a smaller player in the U.S. market, has recently demonstrated insider confidence with share purchases over the past six months. Their financial performance for 2024 showed substantial growth, with net income rising to US$42.45 million from US$7.06 million the previous year. Recent strategic leases at The Interlock and Columbus Village enhance their mixed-use asset portfolio's appeal, though reliance on external borrowing poses higher risk than customer deposits. Despite these achievements, future earnings are expected to decline by 13.1% annually over three years, indicating potential challenges ahead amidst growth opportunities in leasing activities and management changes.

• Get an in-depth perspective on Armada Hoffler Properties' performance by reading our valuation report here.

• Evaluate Armada Hoffler Properties' historical performance by accessing our past performance report.

Taking Advantage

• Unlock more gems! Our Undervalued US Small Caps With Insider Buying screener has unearthed 49 more companies for you to explore.Click here to unveil our expertly curated list of 52 Undervalued US Small Caps With Insider Buying.
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Curious About Other Options?

• 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.

Companies discussed in this article include NasdaqGM:FMBH NasdaqGS:OSBC and NYSE:AHH.

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