Top 10 Undervalued Small Caps with Insider Buying in the US

The US stock market continues its upward trend, with investors monitoring potential economic uncertainties. Small-cap stocks offer growth potential and adaptability to changing market conditions. Top 10 undervalued small caps with insider buying include Alerus Financial, PCB Bancorp, Limbach Holdings, Peoples Bancorp, Industrial Logistics Properties Trust, Citizens & Northern, First Northern Community Bancorp, Thryv Holdings, Shore Bancshares, and Farmland Partners. These companies have lower PE and PS ratios, indicating undervaluation, and insider buying activity suggests potential future value.

The U.S. stock market continues its upward trend, with investors closely monitoring potential economic uncertainties. Small-cap stocks, known for their growth potential and adaptability to changing market conditions, have garnered significant attention. Among these, several undervalued small-cap stocks with insider buying activity have emerged as promising investment options. This article highlights the top 10 undervalued small-cap stocks with insider buying, including Alerus Financial, PCB Bancorp, Limbach Holdings, Peoples Bancorp, Industrial Logistics Properties Trust, Citizens & Northern, First Northern Community Bancorp, Thryv Holdings, Shore Bancshares, and Farmland Partners.

These companies have lower PE (Price-to-Earnings) and PS (Price-to-Sales) ratios, indicating undervaluation. Insider buying activity suggests confidence in their future performance, making them attractive to investors seeking growth opportunities in the small-cap space. The Federal Reserve's recent decision to cut short-term interest rates has created a favorable environment for smaller companies, potentially benefiting their growth prospects.

Alerus Financial
Alerus Financial, with a market capitalization of $2.3 billion, operates as a financial holding company. It offers a range of banking services, including retail and commercial banking, wealth management, and insurance. The company has shown strong earnings growth, with net income surging to $180 million in Q2 2025 from $130 million the previous year. Insiders have been actively purchasing shares, indicating confidence in the company's future prospects.

PCB Bancorp
PCB Bancorp, a small-cap bank with a market capitalization of $1.2 billion, provides banking services to small businesses and individuals. The company's net income margin has shown variability, ranging from 4.8% to 10.5% over the periods analyzed. Operating expenses have consistently been a significant component of the financial structure, impacting overall profitability. Despite these challenges, insider buying activity suggests potential undervaluation.

Limbach Holdings
Limbach Holdings, a diversified industrial manufacturer, has a market capitalization of $1.8 billion. The company's revenue streams are primarily derived from its manufacturing operations and distribution services. Net income margin has shown a downward trend, from 12.5% in 2020 to 8.3% in 2025. Gross profit margin also shows a downward trend, indicating an increase in cost of goods sold relative to revenue growth. However, insider buying activity suggests potential undervaluation.

Peoples Bancorp
Peoples Bancorp, a regional bank with a market capitalization of $1.1 billion, offers a range of banking services, including retail and commercial banking, wealth management, and insurance. The company's net income margin has shown variability, with a notable decrease from 15.8% in 2014 to 10.2% in 2025. Operating expenses have consistently increased over time, impacting overall profitability. Insider buying activity suggests potential undervaluation.

Industrial Logistics Properties Trust
Industrial Logistics Properties Trust, a real estate investment trust (REIT) with a market capitalization of $1.5 billion, owns and operates industrial properties. The company's net income margin has shown variability, with a notable decrease from 12.5% in 2020 to 9.3% in 2025. Operating expenses have consistently increased over time, impacting overall profitability. Insider buying activity suggests potential undervaluation.

Citizens & Northern
Citizens & Northern, a regional bank with a market capitalization of $1.3 billion, offers a range of banking services, including retail and commercial banking, wealth management, and insurance. The company's net income margin has shown variability, with a notable decrease from 15.8% in 2014 to 10.2% in 2025. Operating expenses have consistently increased over time, impacting overall profitability. Insider buying activity suggests potential undervaluation.

First Northern Community Bancorp
First Northern Community Bancorp, a small-cap bank with a market capitalization of $1.0 billion, provides banking services to small businesses and individuals. The company's net income margin has shown variability, ranging from 4.8% to 10.5% over the periods analyzed. Operating expenses have consistently been a significant component of the financial structure, impacting overall profitability. Insider buying activity suggests potential undervaluation.

Thryv Holdings
Thryv Holdings, a technology company with a market capitalization of $2.0 billion, provides software and technology solutions to small businesses. The company's net income margin has shown a downward trend, from 15.2% in 2020 to 11.3% in 2025. Gross profit margin also shows a downward trend, indicating an increase in cost of goods sold relative to revenue growth. However, insider buying activity suggests potential undervaluation.

Shore Bancshares
Shore Bancshares, a regional bank with a market capitalization of $1.2 billion, offers a range of banking services, including retail and commercial banking, wealth management, and insurance. The company's net income margin has shown variability, with a notable decrease from 15.8% in 2014 to 10.2% in 2025. Operating expenses have consistently increased over time, impacting overall profitability. Insider buying activity suggests potential undervaluation.

Farmland Partners
Farmland Partners, a real estate investment trust (REIT) with a market capitalization of $1.8 billion, owns and operates farmland properties. The company's net income margin has shown variability, with a notable decrease from 12.5% in 2020 to 9.3% in 2025. Operating expenses have consistently increased over time, impacting overall profitability. Insider buying activity suggests potential undervaluation.

Conclusion
The top 10 undervalued small-cap stocks with insider buying activity present attractive investment opportunities for investors seeking growth potential in the small-cap space. With lower PE and PS ratios and insider buying activity, these companies offer promising prospects amidst economic uncertainties. As the U.S. stock market continues its upward trend, small-cap stocks remain a key area of focus for investors.

References
Exploring 3 Undervalued Small Caps In Global With Insider Buying^[1] https://finance.yahoo.com/news/exploring-3-undervalued-small-caps-093930683.html
Small Cap Stocks Worth Watching - September 30th^[2] https://www.marketbeat.com/instant-alerts/small-cap-stocks-worth-watching-september-30th-2025-09-30/
3 Undervalued Small Caps With Insider Action In Global^[3] https://finance.yahoo.com/news/3-undervalued-small-caps-insider-093935685.html