In the last week, the United States market has stayed flat, yet it is up 23% over the past year with earnings forecasted to grow by 15% annually. In such a dynamic environment, identifying stocks that are perceived as undervalued can present potential opportunities for investors seeking to capitalize on growth prospects and insider confidence.

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

Click here to see the full list of 47 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Civista Bancshares

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 through its banking operations, with a recent quarterly revenue of $149.09 million. Over the analyzed periods, the company consistently achieved a gross profit margin of 100%. Operating expenses have shown an upward trend, reaching $112.52 million in the latest period, predominantly driven by general and administrative expenses totaling $93.99 million. The net income margin has varied over time but was recorded at 20.80% in the most recent quarter.

PE: 11.2x

Civista Bancshares, a smaller financial institution, recently reported fourth-quarter net interest income of US$31.36 million and net income of US$9.89 million, showing slight growth from the previous year. Despite a dip in full-year earnings to US$31.68 million from US$42.96 million, insider confidence is evident with increased dividends to 17 cents per share for February 2025 payouts. With forecasted earnings growth of 10.15% annually, Civista's prospects remain promising amidst leadership changes and steady performance metrics.

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

• Assess Civista Bancshares' past performance with our detailed historical performance reports.

PCB Bancorp

Simply Wall St Value Rating: ★★★★★☆

Overview: PCB Bancorp operates as a bank holding company providing a range of banking products and services primarily to small to medium-sized businesses and individuals, with a market capitalization of approximately $0.17 billion.

Operations: PCB Bancorp generates revenue primarily from the banking industry, with recent figures at $96.31 million. The company consistently reports a gross profit margin of 100%, indicating that it incurs no cost of goods sold (COGS). Operating expenses include significant general and administrative costs, which reached $50.59 million in the latest period, alongside sales and marketing expenses of $1.89 million. Net income margins have shown variability, recently recorded at 25.93%.

PE: 11.1x

PCB Bancorp, a smaller financial institution in the U.S., is attracting attention due to its potential for growth and insider confidence. Sang Lee's recent purchase of 17,427 shares for US$320,657 indicates belief in the company's prospects. The bank's earnings are projected to grow by 13.43% annually. Recent results show net interest income rose to US$23.16 million from US$21.92 million year-over-year, with net income up to US$7.03 million from US$5.91 million, reflecting solid performance momentum amidst broader market challenges.

• Unlock comprehensive insights into our analysis of PCB Bancorp stock in this valuation report.

• Learn about PCB Bancorp's historical performance.

PennyMac Mortgage Investment Trust

Simply Wall St Value Rating: ★★★☆☆☆

Overview: PennyMac Mortgage Investment Trust is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets, with a market capitalization of approximately $1.05 billion.

Operations: PMT generates revenue primarily through its operations, with a notable gross profit margin trend peaking at 83.18% in 2024. Operating expenses have shown variability, impacting net income margins which have fluctuated significantly over the years. The company's cost of goods sold (COGS) has also varied, influencing overall profitability and financial outcomes.

PE: 9.9x

PennyMac Mortgage Investment Trust, a smaller player in the U.S. market, has recently shown insider confidence with share purchases throughout 2024. Despite reporting a decrease in net income to US$161 million for 2024 from US$200 million the previous year, its earnings per share remain competitive within its segment. The firm maintains high dividend yields across common and preferred shares, signaling potential income stability for investors. However, reliance on external borrowing highlights risk factors to consider amidst growth prospects projected at 6.44% annually.

• Click here and access our complete valuation analysis report to understand the dynamics of PennyMac Mortgage Investment Trust.

• Gain insights into PennyMac Mortgage Investment Trust's past trends and performance with our Past report.

Seize The Opportunity

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Interested In Other Possibilities?

• 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 NasdaqCM:CIVB NasdaqGS:PCB and NYSE:PMT.

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