Over the last 7 days, the United States market has experienced a 1.9% decline, though it has seen a substantial rise of 30% over the past year, with earnings anticipated to grow by 15% annually in the coming years. In this context, identifying small-cap stocks that exhibit potential value and insider activity can present intriguing opportunities for investors looking to navigate these dynamic market conditions.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: PRA Group is a company specializing in accounts receivable management, with operations focused on purchasing and collecting nonperforming loans, and it has a market cap of approximately $1.36 billion.
Operations: PRA Group generates revenue primarily from accounts receivable management, with recent figures showing $977.66 million. Over time, the company has experienced fluctuations in net income margin, reaching as low as -10.40% and recently at 0.40%. Operating expenses consistently form a significant portion of their costs, impacting profitability levels.
PE: 205.3x
PRA Group, a smaller company in the financial sector, has shown signs of being undervalued. Recent earnings reports highlight a turnaround, with Q3 2024 revenue reaching US$281.48 million and net income at US$27.15 million compared to last year's loss. Insider confidence is evident as Geir Olsen purchased 11,750 shares for US$251,333 in October 2024. The firm extended credit agreements totaling US$2.3 billion until October 2029 without changing pricing terms, indicating stable financing conditions despite relying solely on external borrowing sources.
Overview: Proto Labs is a company specializing in rapid manufacturing of custom prototypes and low-volume production parts, with a market cap of approximately $1.31 billion.
Operations: Proto Labs generates revenue primarily from the machinery and industrial equipment sector, with a recent figure of $504.19 million. The company's gross profit margin has shown fluctuations, most recently recorded at 45.03%. Operating expenses are significant, comprising costs such as sales and marketing, research and development, and general administrative expenses.
PE: 35.5x
Proto Labs, a small company in the U.S., has experienced significant share price volatility over the past three months. Despite this, insider confidence is evident with Robert Bodor purchasing 3,480 shares for approximately US$99,800. However, their funding structure relies entirely on external borrowing, posing higher risk. Recent earnings guidance indicates expected revenue between US$115 million and US$123 million for Q4 2024. Earnings are projected to decline by an average of 11.5% annually over the next three years.
Overview: PROS Holdings is a company that provides AI-powered solutions to optimize pricing, selling, and revenue management for businesses across various industries, with a market cap of approximately $1.92 billion.
Operations: The company generates revenue primarily from its software and programming segment, with a recent figure of $322.89 million. Key expenses include cost of goods sold at $114.69 million and operating expenses totaling $236.27 million, which comprise sales & marketing, R&D, and general & administrative costs. The gross profit margin has shown an upward trend reaching 64.48% in the latest period analyzed.
PE: -34.2x
PROS Holdings, a small-cap company in the United States, recently reported third-quarter revenue of US$82.7 million, up from US$77.25 million last year, with a net income turnaround to US$0.235 million from a loss of US$13.87 million previously. Despite being unprofitable and not expected to achieve profitability soon, the company forecasts annual revenue growth of 9.67%. Insider confidence is evident as insiders have been purchasing shares recently, signaling potential value recognition within the market. The introduction of PROS Smart Rebate Management aims to enhance sales efficiency through automation and streamlined rebate processes, potentially boosting future performance amidst leadership transitions as CEO Andres Reiner plans retirement while ensuring smooth succession planning continues with an executive search underway for his replacement.
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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.
