3 Undervalued Small-Cap Stocks With Insider Activity in US

In the ever-evolving landscape of the US stock market, small-cap stocks often present attractive investment opportunities. These companies, with market capitalizations between $300 million and $2 billion, can offer significant growth potential and undervalued prices. This article explores three undervalued small-cap stocks with recent insider activity, indicating that corporate insiders believe these companies are poised for future growth.



1. MillerKnoll, Inc. (NASDAQ:MLKN)
MillerKnoll, Inc. designs, manufactures, and distributes interior furnishings worldwide. On October 3, 2022, a director at MillerKnoll purchased 60,606 shares of the company at $16.88 each, indicating confidence in the company's future prospects. As of March 10, 2023, the stock was priced at $22.63, indicating a return of 34% since the director's purchase. Additionally, MillerKnoll declared a $0.1875 per share quarterly dividend, payable on April 15, 2023, to shareholders of record on March 4, 2023. With a current price-to-earnings (P/E) ratio of 12.54, MillerKnoll appears undervalued compared to the industry average.



2. Archer Aviation (NYSE:ACHR)
Archer Aviation is a company developing flying cars, with a market cap of $1.36 billion. Stellantis, a strategic partner and investor in Archer, bought another 17.4 million shares for about $55 million on July 1, 2022. This insider buying activity aligns with the company's progress in developing flying cars and its manufacturing facility in Georgia, which is expected to support the production of 650 flying cars annually. Archer's stock price has been volatile, but its partnership with Stellantis and the potential for exponential growth in the AI sector make it an attractive investment opportunity.



3. Nerdy (NYSE:NRDY)
Nerdy is a platform for live online learning with a mission to transform how people learn through technology. CEO Charles Cohn purchased another 347,275 shares for about $652,877, between $1.83 and $1.95 per share, indicating confidence in the company's future prospects. Nerdy's earnings have been strong, with revenue increasing 9% year over year in its first quarter and a net loss improvement of $20.2 million compared to the previous year. Despite recent weakness in the stock price, Nerdy's strong earnings and insider buying activity make it an attractive investment opportunity. With a current price-to-book (P/B) ratio of 1.54, Nerdy appears undervalued compared to the industry average.



In conclusion, these three undervalued small-cap stocks with recent insider activity present attractive investment opportunities for investors seeking growth and value. MillerKnoll, Archer Aviation, and Nerdy all have strong fundamentals, positive insider activity, and undervalued stock prices, making them worthy of further investigation. As always, it is essential to conduct thorough research and consider other factors before making any investment decisions.