Undervalued Small Caps With Insider Activity To Consider In August 2024

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As global markets show signs of recovery and hopes for a "soft landing" in the U.S. economy grow, small-cap stocks have also been on the rise, with indices like the Russell 2000 gaining momentum. Amid this optimistic backdrop, identifying undervalued small-cap stocks with notable insider activity can offer promising opportunities for investors looking to capitalize on market trends. In such a dynamic environment, a good stock often exhibits strong fundamentals and insider confidence, which can be particularly telling indicators of potential growth and resilience.

Top 10 Undervalued Small Caps With Insider Buying

Name

PE

PS

Discount to Fair Value

Value Rating

Ramaco Resources

11.8x

0.9x

36.82%

★★★★★★

Calfrac Well Services

2.6x

0.2x

35.13%

★★★★★★

Bytes Technology Group

24.8x

5.6x

12.05%

★★★★★☆

Thryv Holdings

NA

0.8x

23.62%

★★★★★☆

Norcros

7.4x

0.5x

4.45%

★★★★☆☆

Primaris Real Estate Investment Trust

11.0x

2.9x

45.05%

★★★★☆☆

NSI

NA

4.5x

44.56%

★★★☆☆☆

Sagicor Financial

1.3x

0.3x

-43.72%

★★★☆☆☆

Community West Bancshares

18.7x

2.9x

42.25%

★★★☆☆☆

Delek US Holdings

NA

0.1x

-91.86%

★★★☆☆☆

Click here to see the full list of 207 stocks from our Undervalued Small Caps With Insider Buying screener.

Here's a peek at a few of the choices from the screener.

Codan

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Codan specializes in the development and manufacturing of communication equipment and metal detection technologies, with a market cap of approximately A$1.25 billion.

Operations: Codan's primary revenue streams are from its Communications segment, generating A$291.50 million, and Metal Detection segment, contributing A$212.20 million. The company's gross profit margin has shown fluctuations, reaching 54.42% in the latest period ending December 31, 2023.

PE: 34.9x

Codan, a small-cap company, reported impressive earnings for the year ending June 30, 2024. Sales rose to A$550.5 million from A$456.5 million last year, with net income increasing to A$81.3 million from A$67.7 million. Insider confidence is evident with notable share purchases over the past six months. Despite relying solely on external borrowing for funding, Codan's forecasted annual earnings growth of 16.2% suggests potential for future value appreciation in its sector.

ASX:CDA Share price vs Value as at Aug 2024
ASX:CDA Share price vs Value as at Aug 2024

Distribution Solutions Group

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Distribution Solutions Group operates in the industrial distribution sector, providing a wide range of products and services through its segments Lawson, TestEquity, and Gexpro Services with a market cap of approximately $1.42 billion.