Undervalued Small Caps With Insider Buying in September 2025: High-Conviction Opportunities for Long-Term Investors

In the volatile landscape of 2025, small-cap stocks often fly under the radar of institutional investors, yet they harbor unique opportunities for long-term growth. One telling signal for identifying these gems is insider buying—a proxy for management’s confidence in a company’s future. This article examines three undervalued small-cap stocks—Domo (DOMO), Peapack-Gladstone Financial (PGC), and Gray Media (GTN)—through the lens of insider activity, strategic initiatives, and financial fundamentals, arguing that their September 2025 trajectories warrant serious consideration.

Domo (DOMO): A Data-Driven Growth Story

Domo, a leader in cloud-based analytics, has seen aggressive insider buying in 2025, with CEO Joshua James purchasing 13,025 shares at $12.74 per share in June 2025, boosting his stake by 1.22% [1]. This follows a $6.50-per-share purchase of 77,300 shares by James in April 2025 [5]. Such activity aligns with the company’s strategic pivot to consumption-based contracts, which now account for 75% of its Annual Recurring Revenue (ARR). This shift has driven a 108% net revenue retention rate for consumption-based customers, outpacing traditional seat-based models [3].

Domo’s partnerships with cloud giants like Snowflake and Databricks further solidify its market position, enabling deeper integrations and broader customer adoption [3]. The company’s recognition as a “Leader” in Nucleus Research’s 2025 Business Intelligence Value Matrix underscores its competitive edge [4]. Despite remaining unprofitable, Domo’s focus on AI-driven analytics and international expansion—particularly in Japan—positions it to capitalize on the growing demand for real-time data solutions [3].

Peapack-Gladstone Financial (PGC): A Regional Bank’s Resilience

Peapack-Gladstone Financial, a regional bank with a focus on commercial lending, has seen a notable insider purchase by director F. Meyercord in July 2025, acquiring 6,316 shares for $179,608 [2]. This activity suggests confidence in the company’s ability to navigate a challenging interest rate environment. While PGC’s financials are not detailed in the provided data, its insider buying history indicates a pattern of management prioritizing shareholder value.

Regional banks like PGC often benefit from niche markets and strong local relationships, which can insulate them from broader economic downturns. In 2025, as interest rates stabilize, PGC’s focus on commercial real estate and small business lending could drive steady returns. The lack of recent insider sales further implies a stable capital structure, making it an attractive defensive play in a diversified portfolio.

Gray Media (GTN): Strategic Acquisitions and Debt Reduction

Gray Media, a broadcasting and digital media company, has executed a series of strategic moves in Q2 2025, including a $900 million debt issuance and acquisitions of stations from E.W. Scripps and Sagamore Hill Broadcasting [1]. These transactions aim to create 11 Big Four duopolies and expand into six new markets, enhancing its local news dominance. CEO Hilton Howell’s June 2025 purchase of 46,000 shares at $3.68 per share [2] signals alignment with this aggressive growth strategy.

However, Gray Media faces headwinds, including an 81% decline in political advertising revenue due to an off-year [3]. Despite this, the company’s debt reduction of $22 million and a first lien leverage ratio of 2.99x demonstrate disciplined capital management [1]. The recent hyper-personalized video streaming initiative using Google Cloud and Quickplay also hints at a pivot toward digital innovation [4]. While insider transactions like director Richard Boger’s February 2025 sale of 61,552 shares at $3.85 per share [2] may seem bearish, these are largely compensation-related and do not reflect long-term sentiment.

Conclusion: Insider Confidence as a Growth Signal

The September 2025 market environment, marked by macroeconomic uncertainty, demands a focus on companies with strong fundamentals and insider alignment. Domo’s consumption-based model and AI-driven innovation, Peapack-Gladstone’s regional resilience, and Gray Media’s strategic acquisitions all reflect insider confidence in their respective industries. While each faces unique challenges—Domo’s unprofitability, PGC’s exposure to interest rates, and Gray’s reliance on political advertising—their insider activity and strategic pivots suggest these risks are being actively managed.

For long-term investors, these stocks represent high-conviction opportunities where insider buying and strategic clarity can compound value over time. As always, due diligence is essential, but the data points to a compelling case for these undervalued small caps.

Source:
[1] Gray Media Announces Second Quarter Financial Results [https://www.globenewswire.com/news-release/2025/08/08/3130014/0/en/Gray-Media-Announces-Second-Quarter-Financial-Results.html]
[2] Gray Media, Inc. (GTN) Recent Insider Transactions [https://beta.finance.yahoo.com/quote/GTN/insider-transactions/]
[3] DOMO Q2 Deep Dive: Consumption Model and Partner [https://finance.yahoo.com/news/domo-q2-deep-dive-consumption-053119395.html]
[4] Domo Named a Leader in the 2025 Nucleus Research Analytics Technology Value Matrix [https://www.domo.com/news/press/domo-named-a-leader-in-the-2025-nucleus-research-analytics-technology-value-matrix]
[5] Domo Inc (DOMO) Insider Trading Activity [https://www.insiderscreener.com/en/company/domo-inc]