Undervalued Small Caps with Insider Buying Amidst Global Market Challenges

Small-cap stocks have shown resilience despite economic challenges. Companies in sectors like manufacturing and services are experiencing growth. Top undervalued small caps with insider buying globally include GDI Integrated Facility Services, Bytes Technology Group, and Hemisphere Energy, among others. These companies have a PE ratio between 3.2x and 19.2x, a PS ratio between 0.3x and 12.7x, and a discount to fair value ranging from 4.22% to 46.86%.

Despite economic headwinds, small-cap stocks have demonstrated remarkable resilience, with companies in sectors such as manufacturing and services experiencing notable growth. A recent analysis by Simply Wall St highlights several undervalued small-cap stocks with insider buying, offering promising opportunities for investors seeking diversification.

One notable company is Vaycaychella (OTC: VAYK), which reported significant revenue growth, surpassing $1 million in revenue by July 2025. The company achieved $811K in gross revenue for H1 2025, with a gross profit of $237K and operating profit of $16K. Despite strong revenue growth, VAYK posted a net loss of $57K due to acquisition and interest costs. The company is focusing on its metro Atlanta assets and is seeking equity financing to reduce its loan burden, promising no dilution for current shareholders [1].

In the U.S., several small-cap stocks with insider buying are undervalued. Community Trust Bancorp (CTBI), Udemy (UDMY), and Univest Financial (UVSP) are among the top picks. Community Trust Bancorp, a smaller U.S. financial institution, shows potential for growth with earnings projected to rise by 5.55% annually. Udemy, a growing player in the education technology sector, has shown promising financial performance with Q2 2025 sales reaching US$199.88 million and net income of US$6.27 million. Univest Financial, a smaller company in the financial sector, recently reported net interest income of US$59.54 million for Q2 2025 [2].

These companies have a PE ratio between 3.2x and 19.2x, a PS ratio between 0.3x and 12.7x, and a discount to fair value ranging from 4.22% to 46.86%. Insider buying suggests confidence in the companies' future prospects, making them attractive options for investors looking to diversify their portfolios.

References:
[1] https://www.stocktitan.net/news/VAYK/vayk-surpassed-1-million-rev-in-7-months-and-projected-250-yo-y-jtoyb7u9pddz.html
[2] https://simplywall.st/stocks/us/banks/nasdaq-ctbi/community-trust-bancorp/news/exploring-3-undervalued-small-caps-with-insider-action-acros-7