Identifying Undervalued Small Caps with Insider Buying Amidst Market Volatility

As the US stock market navigates volatility, small-cap stocks offer intriguing opportunities. Insider buying suggests confidence in these companies' future prospects. This article highlights 10 undervalued small caps with notable insider buying, including Angel Oak Mortgage REIT, Peoples Bancorp, and Industrial Logistics Properties Trust. Helen of Troy, a consumer products company, is also discussed, with a volatile share price and reliance on external borrowing, but with a new CEO appointed to steer future growth strategies.

As the U.S. stock market continues to experience volatility, small-cap stocks present intriguing investment opportunities. Insider buying activity often serves as a subtle but powerful indicator of a company's health and future prospects. This article highlights 10 undervalued small-cap stocks with notable insider buying, including Angel Oak Mortgage REIT, Peoples Bancorp, and Industrial Logistics Properties Trust. Additionally, we discuss Helen of Troy, a consumer products company, which has faced recent challenges but is poised for growth under new leadership.

Insider Buying Indicators

Insider buying activity at these companies signals confidence in their future prospects. For instance, Eli Lilly and Company (NYSE: LLY) saw insiders purchase $3 million in shares during a 14% pre-market dip, indicating belief in the company's fundamentals despite mixed clinical trial results [1]. This pattern of insider buying, particularly by top executives, aligns with the company's long-term strategic goals.

Angel Oak Mortgage REIT (NYSE: AOM)

Angel Oak Mortgage REIT has seen insiders purchase significant shares, signaling confidence in the company's future performance. With a focus on residential mortgage-backed securities (RMBS), the company has been expanding its portfolio and increasing its dividend payouts.

Peoples Bancorp (NASDAQ: PB)

Peoples Bancorp has experienced insider buying, indicating that key executives believe in the bank's ability to navigate the current economic environment and capitalize on growth opportunities.

Industrial Logistics Properties Trust (NYSE: IR)

Industrial Logistics Properties Trust has seen notable insider buying activity, suggesting confidence in the company's real estate investment trust (REIT) model and its ability to generate stable income.

Helen of Troy: A New Chapter

Helen of Troy, a consumer products company, has faced recent challenges, including a decline in sales and stock price. However, the appointment of Scott Uzzell, a former Nike and Coca-Cola executive, as CEO signals a strategic shift aimed at returning the company to consistent growth and delivering value to shareholders [2]. Uzzell's extensive experience in building and growing consumer brands positions him to leverage the company's durable foundation as a purpose-driven innovation leader.

Conclusion

The convergence of insider confidence, analyst optimism, and undervaluation metrics presents a compelling investment case for these small-cap stocks. While risks such as economic volatility and regulatory hurdles persist, the fundamentals suggest that these companies are well-positioned to deliver outsized returns over the next five years. For investors seeking opportunities in a volatile market, these stocks offer a rare alignment of signals: insiders buying at current prices, analysts projecting substantial upside, and a business model poised to benefit from secular trends in various sectors.

References

[1] https://www.ainvest.com/news/eli-lilly-insider-buying-activity-strategic-indicator-future-stock-performance-management-confidence-2508/
[2] https://www.elpasotimes.com/story/money/business/2025/08/14/former-nike-coca-cola-executive-scott-uzzell-new-ceo-helen-of-troy-el-paso-consumer-products-company/85650866007/