Top Undervalued Small Caps with Insider Activity in September 2025: Expert Analysis and Insights

As the US markets experience fluctuations, small-cap stocks are gaining attention. Undervalued small-cap companies with notable insider activity can provide insights into potential opportunities. The top 10 undervalued small caps with insider buying in the US include Angel Oak Mortgage REIT, PCB Bancorp, Peoples Bancorp, and Citizens & Northern, among others. These companies have a low PE ratio, high discount to fair value, and a high value rating.

As the US markets experience fluctuations, small-cap stocks are gaining attention. Undervalued small-cap companies with notable insider activity can provide insights into potential opportunities. The top 10 undervalued small caps with insider buying in the US include Angel Oak Mortgage REIT, PCB Bancorp, Peoples Bancorp, and Citizens & Northern, among others. These companies have a low PE ratio, high discount to fair value, and a high value rating.

Key Insights

Angel Oak Mortgage REIT (AOM)
- PE Ratio: 10.4x
- Discount to Fair Value: 31.8%
- Value Rating: ★★★★★☆
- Angel Oak Mortgage REIT focuses on providing mortgage-backed securities. Recent insider activity suggests confidence in the company's growth prospects.

PCB Bancorp (PCB)
- PE Ratio: 10.3x
- Discount to Fair Value: 30.74%
- Value Rating: ★★★★★☆
- PCB Bancorp operates in the banking sector. The company has seen insiders buying more shares, indicating a positive outlook on its future performance.

Peoples Bancorp (PB)
- PE Ratio: 10.6x
- Discount to Fair Value: 42.34%
- Value Rating: ★★★★★☆
- Peoples Bancorp is a regional bank with a strong focus on community banking. Insider buying activity suggests potential undervaluation.

Citizens & Northern (CNB)
- PE Ratio: 11.8x
- Discount to Fair Value: 40.30%
- Value Rating: ★★★★☆☆
- Citizens & Northern is a financial institution serving the northern region of the US. Insiders have been buying shares, signaling optimism about the company's future.

Insider Activity and Financial Performance

Insider buying activity is often seen as a positive indicator of a company's future prospects. When insiders, such as directors and executives, buy shares, it suggests they have confidence in the company's growth potential and management. For instance, Enterprise Products Partners (EPD) saw insiders buying nearly $1 million worth of shares in July 2025, indicating strong confidence in the company's growth prospects [1].

Market Context and Risk

While insider buying can be a positive sign, it is essential to consider the broader market context. Small-cap stocks are often more volatile and sensitive to macroeconomic factors such as interest rate changes and commodity price swings. For example, the energy sector's exposure to volatility may impact companies like Enterprise Products Partners [1].

Conclusion

Undervalued small-cap stocks with insider buying can offer attractive investment opportunities for income-focused investors seeking growth. Companies such as Angel Oak Mortgage REIT, PCB Bancorp, Peoples Bancorp, and Citizens & Northern exhibit positive insider activity and have low PE ratios and high discounts to fair value. However, investors should also consider the broader market context and potential risks associated with small-cap stocks.

References

[1] Enterprise Products Partners L.P. (EPD) Recent Insider Transactions
https://finance.yahoo.com/quote/EPD/insider-transactions/

[2] Enterprise Products Partners LP (EPD) - Yahoo Finance
https://finance.yahoo.com/quote/EPD/