July 2024 Insight Into Undervalued Small Caps With Insider Actions

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As global markets exhibit mixed signals with the S&P 500 reaching new heights and small-cap indices like the Russell 2000 showing slight declines, investors are navigating through a landscape shaped by cooling labor markets and fluctuating interest rates. In such an environment, identifying undervalued small-cap stocks becomes particularly compelling, especially those where insider actions suggest unrecognized potential amidst broader market undercurrents.

Top 10 Undervalued Small Caps With Insider Buying

Name

PE

PS

Discount to Fair Value

Value Rating

Hanover Bancorp

8.2x

1.9x

49.58%

★★★★★☆

Tokmanni Group Oyj

16.8x

0.5x

38.77%

★★★★★☆

Calfrac Well Services

2.3x

0.2x

28.96%

★★★★★☆

Guardian Capital Group

10.6x

4.1x

31.22%

★★★★☆☆

M&C Saatchi

NA

0.6x

48.52%

★★★★☆☆

Norconsult

27.9x

1.0x

43.92%

★★★☆☆☆

Westshore Terminals Investment

14.2x

3.8x

1.98%

★★★☆☆☆

Russel Metals

8.6x

0.5x

-0.65%

★★★☆☆☆

Trifast

NA

0.4x

-46.02%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

Click here to see the full list of 227 stocks from our Undervalued Small Caps With Insider Buying screener.

Let's review some notable picks from our screened stocks.

LT Foods

Simply Wall St Value Rating: ★★★★★☆

Overview: LT Foods is a company engaged in the manufacturing and storage of rice with a market capitalization of approximately ?36.14 billion.

Operations: The entity generates a significant portion of its revenue from the manufacture and storage of rice, totaling ?78.22 billion. It has observed a gross profit margin increase to 32.52% in the most recent period reported, reflecting an upward trend from earlier figures such as 25.07% at the start of the recorded data.

PE: 16.4x

Recently, Radhika Seth demonstrated insider confidence in LT Foods by purchasing 8,795 shares, signaling a positive outlook on the company's prospects. This move aligns with LT Foods' robust financial performance, as evidenced by a substantial increase in annual sales to INR 77.72 billion and net income growth to INR 5.93 billion. Despite facing minor regulatory challenges with fines for legal metrology violations, the firm continues to attract investor interest through consistent shareholder communications and dividend payouts, suggesting resilience and potential for growth amidst market uncertainties.

NSEI:LTFOODS Share price vs Value as at Jul 2024
NSEI:LTFOODS Share price vs Value as at Jul 2024

Marksans Pharma

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Marksans Pharma is a pharmaceutical company primarily engaged in the manufacturing and marketing of formulation products, with a market capitalization of approximately ?21.77 billion.