The United States market has shown robust performance, rising 1.4% over the last week and 34% over the past year, with earnings projected to grow by 15% annually. In this environment, identifying small-cap stocks that are potentially undervalued and exhibit insider activity can present unique opportunities for investors seeking to capitalize on growth potential.

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

Civista Bancshares

Simply Wall St Value Rating: ★★★★☆☆

Overview: Civista Bancshares is a financial institution primarily engaged in providing banking services, with a market capitalization of approximately $0.25 billion.

Operations: The primary revenue stream is from banking, with the latest reported revenue at $146.57 million. The net income margin has shown fluctuations, reaching 31.16% in Q3 2019 before decreasing to 20.90% by Q3 2024. Operating expenses are significant, with general and administrative expenses consistently forming a large portion of these costs, amounting to $88.25 million in the most recent period.

PE: 11.8x

Civista Bancshares, a smaller company in the financial sector, recently reported a decrease in net interest income and net income for Q3 2024 compared to last year. Despite this, insider confidence is evident with recent share purchases. The company announced a quarterly dividend of US$0.16 per share and has filed a US$200 million shelf registration, indicating plans for potential capital raising or strategic initiatives. Earnings are projected to grow annually by 7.55%, suggesting future growth opportunities despite current challenges.

• Take a closer look at Civista Bancshares' potential here in our valuation report.

• Examine Civista Bancshares' past performance report to understand how it has performed in the past.

Granite Ridge Resources

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Granite Ridge Resources is involved in the development, exploration, and production of oil and natural gas with a market cap of approximately $1.28 billion.

Operations: The company's revenue is primarily derived from oil and natural gas development, exploration, and production. Over recent periods, its gross profit margin has shown a declining trend from 90.27% in June 2022 to 82.58% by September 2024. Operating expenses include significant allocations for depreciation and amortization, which have consistently impacted overall profitability.

PE: 17.0x

Granite Ridge Resources, a company with a focus on energy production, has been catching attention due to its insider confidence. Recently, an insider purchased 38,500 shares for about US$252K in November 2024, indicating potential belief in the company's prospects. Despite challenges like declining net income from US$17.96 million to US$9.05 million year-over-year for Q3 2024 and lower profit margins compared to last year, the company's earnings are forecasted to grow by over 35% annually. The firm maintains a quarterly dividend of $0.11 per share amidst these financial shifts and continues engaging with investors through various conferences, reflecting an active approach towards market visibility and growth opportunities within the industry context.

• Delve into the full analysis valuation report here for a deeper understanding of Granite Ridge Resources.

• Evaluate Granite Ridge Resources' historical performance by accessing our past performance report.

PROS Holdings

Simply Wall St Value Rating: ★★★☆☆☆

Overview: PROS Holdings is a company that specializes in providing AI-powered software solutions to optimize pricing, sales, and revenue management across various industries, with a market capitalization of approximately $1.53 billion.

Operations: The company generates revenue primarily from its Software & Programming segment, amounting to $322.89 million. The cost of goods sold (COGS) is $114.69 million, resulting in a gross profit of $208.20 million and a gross profit margin of 64.48%. Operating expenses are significant, with key components being Sales & Marketing and R&D expenses at $87.47 million and $90.30 million, respectively, impacting the net income which stands at -$28.70 million with a net income margin of -8.89%.

PE: -41.9x

PROS Holdings, recognized for its innovative SaaS solutions, is gaining attention as a potential undervalued stock. The recent appointment of John Strosahl to the board and Colleen Langevin as CMO highlights strategic leadership shifts aimed at driving growth. Their Q3 2024 earnings showed progress with revenue reaching US$82.7 million and net income turning positive at US$0.235 million, compared to last year's loss. Additionally, TAP Air Portugal's expanded use of PROS tools underscores their industry relevance in dynamic pricing and revenue management solutions.

• Click here to discover the nuances of PROS Holdings with our detailed analytical valuation report.

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

Next Steps

• Access the full spectrum of 52 Undervalued US Small Caps With Insider Buying by clicking on this link.
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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 NasdaqCM:CIVB NYSE:GRNT and NYSE:PRO.

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