Discover August 2024's Undervalued Small Caps In United States With Insider Buying

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In the last week, the market has been flat, but it is up 25% over the past year with earnings expected to grow by 15% per annum over the next few years. In this environment, identifying undervalued small-cap stocks with insider buying can offer unique opportunities for investors looking to capitalize on potential growth.

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

Name

PE

PS

Discount to Fair Value

Value Rating

Ramaco Resources

11.5x

0.9x

38.88%

★★★★★★

Columbus McKinnon

21.3x

1.0x

41.78%

★★★★★★

Hanover Bancorp

8.9x

2.0x

49.66%

★★★★★☆

Orion Group Holdings

NA

0.4x

18.93%

★★★★★☆

Thryv Holdings

NA

0.8x

22.22%

★★★★★☆

Franklin Financial Services

9.7x

1.9x

38.50%

★★★★☆☆

Lindblad Expeditions Holdings

NA

1.0x

35.16%

★★★★☆☆

MYR Group

34.7x

0.5x

41.19%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

Industrial Logistics Properties Trust

NA

0.8x

-272.12%

★★★☆☆☆

Click here to see the full list of 69 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Lindblad Expeditions Holdings

Simply Wall St Value Rating: ★★★★☆☆

Overview: Lindblad Expeditions Holdings operates expedition cruises and adventure travel experiences, with a market cap of approximately $0.51 billion.

Operations: Lindblad generates revenue primarily through its Lindblad and Land Experiences segments, with recent revenues of $405.86 million and $185.61 million, respectively. The company's gross profit margin has shown a notable trend, reaching 44.10% as of the latest period ending August 26, 2024.

PE: -10.3x

Lindblad Expeditions Holdings, a small company in the expedition travel industry, recently reported second-quarter sales of US$136.5 million, up from US$124.8 million last year. Despite a net loss of US$24.67 million for the quarter, insider confidence is evident with recent share purchases by executives in August 2024. The company added two new Galápagos vessels to its fleet and appointed two experienced directors to its board, enhancing its leadership team and growth prospects.

NasdaqCM:LIND Share price vs Value as at Aug 2024
NasdaqCM:LIND Share price vs Value as at Aug 2024

American Woodmark

Simply Wall St Value Rating: ★★★★☆☆

Overview: American Woodmark manufactures and distributes kitchen, bath, and home organization products with a market cap of $0.71 billion.

Operations: The company generated $1.85 billion in revenue, with a gross profit margin of 20.45%. Net income margin was 6.29%, reflecting its profitability after accounting for costs and expenses.

PE: 13.4x

American Woodmark's recent earnings call on August 27, 2024, highlighted a positive trajectory despite relying solely on external borrowing for funding. The company has shown insider confidence with significant share purchases by executives over the past six months. This activity suggests strong belief in future growth potential. Their Annual General Meeting held on June 27, 2024, further reinforced this optimism among stakeholders. With its current valuation and insider activity, American Woodmark presents an intriguing opportunity within its industry.

NasdaqGS:AMWD Share price vs Value as at Aug 2024
NasdaqGS:AMWD Share price vs Value as at Aug 2024

Leggett & Platt

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Leggett & Platt is a diversified manufacturer that designs and produces engineered components and products found in many homes, offices, and vehicles with a market cap of approximately $4.66 billion.

Operations: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products contribute to the company's revenue streams. For the period ending 2024-06-30, gross profit was $790.80 million with a gross profit margin of 17.51%. The net income margin has shown a decline to -18.05% by this period due to significant non-operating expenses reaching $1.09 billion.

PE: -2.1x

Leggett & Platt, a smaller player in the market, has seen insider confidence with recent share purchases. Despite reporting a non-cash goodwill impairment charge of US$675.3 million for Q2 2024 and a net loss of US$602.2 million, earnings are forecast to grow at 67% annually. The company declared a dividend of US$0.05 per share for Q3 2024 and completed significant buybacks totaling US$53.27 million since February 2022, reflecting potential future value despite current challenges.

NYSE:LEG Ownership Breakdown as at Aug 2024
NYSE:LEG Ownership Breakdown as at Aug 2024

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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:LIND NasdaqGS:AMWD and NYSE:LEG.

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