Top Undervalued Small Caps With Insider Action For September 2024

In the dynamic world of investing, identifying undervalued small-cap stocks with insider action can present compelling opportunities for investors. As of September 2024, several small-cap stocks have shown signs of being undervalued, with notable insider buying activity. This article explores the key financial metrics, insider actions, and industry sectors represented by these promising small-cap stocks.


Key Financial Metrics Indicating Undervaluation

1. Price-to-Earnings (PE) ratio: A low PE ratio suggests that a stock is undervalued compared to its earnings. In our list, companies like Orion Group Holdings (NASDAQ:ORN) and Thryv Holdings (NASDAQ:THRY) have PE ratios of 0.4x and 0.8x, respectively, indicating significant undervaluation.
2. Discount to Fair Value: This metric compares a stock's current price to its intrinsic value. Companies like MYR Group (NASDAQ:MYRG) and Sabre (NASDAQ:SABR) have discounts to fair value of 43.37% and 51.50%, respectively, suggesting they are undervalued.
3. Earnings Growth: Companies with strong earnings growth potential are more likely to be undervalued. MYR Group, for instance, has forecasted earnings growth of 52.68% annually.

Insider Buying Activity and Company Performance

Insider buying activity often signals confidence in a company's future prospects. In our list, several companies have seen notable insider purchases:

1. MYR Group: Insiders bought 117,422 shares for $16.26 million between May and June 2024, indicating confidence despite recent financial challenges.
2. Sabre: Executives have made significant share purchases over the past six months, demonstrating belief in the company's growth prospects.
3. Victoria's Secret (NYSE:VSCO): Several executives purchased shares between June and August 2024, showing confidence in the company's strategic moves.

Primary Sectors and Industries

The undervalued small-cap stocks with insider action span various sectors, including:

1. Capital Goods: MYR Group, a provider of electrical construction services, operates in this sector.
2. Technology: Sabre, a technology solutions provider for the travel and tourism industry, is a notable player in this sector.
3. Retail: Victoria's Secret, a specialty retailer of women's lingerie, apparel, and beauty products, is part of the retail sector.

Valuation Comparison

To assess the undervaluation of these small-cap stocks, it's essential to compare their valuations with industry peers and the broader market. While this article does not provide specific comparisons, investors should conduct thorough research to determine if these stocks are indeed undervalued relative to their peers and the market.


In conclusion, identifying undervalued small-cap stocks with insider action requires a thorough understanding of key financial metrics, insider buying activity, and industry sectors. By evaluating these factors, investors can uncover promising investment opportunities in the dynamic world of small-cap stocks.