Undervalued Small Caps with Insider Buying: Top 10 Stocks to Watch Globally

Small-cap stocks have captured investor attention with their potential for growth amid favorable market conditions. Undervalued small-cap companies with insider buying can offer intriguing opportunities, as these factors may signal confidence and potential value realization despite broader market fluctuations. Top undervalued small caps globally include MCAN Mortgage, Daiwa House Logistics Trust, and Nexus Industrial REIT, among others.

Small-cap stocks have been capturing investor attention, particularly with their potential for growth amidst favorable market conditions. Undervalued small-cap companies with insider buying can offer intriguing opportunities, as these factors may signal confidence and potential value realization despite broader market fluctuations. This article explores a few undervalued small-cap stocks in the United States that have shown insider activity, highlighting their potential for investors seeking growth opportunities.

Harmonic

Harmonic is a company specializing in providing video delivery and broadband solutions, with a market cap of approximately $1.37 billion. The company generates revenue primarily from its Video and Broadband segments, with the latter contributing a larger share. Over recent periods, the gross profit margin has shown variability, reaching 55.40% in mid-2025. Operating expenses have been significant, with research and development consistently being a notable cost component. The company recently reported Q2 2025 earnings with revenue of US$138.03 million and net income of US$2.87 million, marking a turnaround from last year's losses. Insider confidence is evident as they repurchased 1.6 million shares between March and June 2025 for US$14 million. The company's innovative solutions like hybrid cloud streaming and advanced broadband platforms position it well for future growth despite current challenges in achieving consistent profitability [1].

Shore Bancshares

Shore Bancshares operates as a community banking organization with a focus on providing financial services, and it has a market capitalization of approximately $0.22 billion. The company generates its revenue primarily from community banking, with a recent quarterly revenue of $208.21 million. Operating expenses are significant, with general and administrative expenses often comprising the largest portion. The net income margin has shown variability, reaching 25.81% in the latest period analyzed. The company's recent quarterly earnings reveal net interest income of US$47.25 million for Q2 2025, up from US$42.14 million last year, with net income rising to US$15.51 million from US$11.23 million in the same period. Insider confidence is evident with recent share purchases, suggesting optimism about future growth prospects as earnings are projected to grow nearly 8% annually [1].

Saul Centers

Saul Centers operates as a real estate investment trust focusing on shopping centers and mixed-use properties, with a market capitalization of $1.16 billion. The company generates revenue primarily from Shopping Centers and Mixed-Use Properties, with recent quarterly revenue reaching $267.61 million. The Gross Profit Margin has seen fluctuations, with a notable figure of 73.76% in September 2024. Operating expenses include significant allocations to General & Administrative costs, which were $24.90 million for the same period. The company's recent quarterly earnings reveal sales of US$70.55 million, an increase from US$65.3 million year-over-year, though net income dropped to US$9.8 million from US$13.63 million previously. Insider confidence is evident as Chairman & CEO Bernard Saul purchased 10,000 shares for approximately US$334,885 in May 2025. While interest payments aren't fully covered by earnings and funding relies on external borrowing, projected annual earnings growth of 12% suggests potential value for investors seeking growth opportunities within this segment [1].

Conclusion

Undervalued small-cap stocks with insider buying can present compelling investment opportunities. Companies like Harmonic, Shore Bancshares, and Saul Centers, while facing their own challenges, show signs of potential growth and insider confidence. Investors should carefully evaluate these stocks, considering their financial health, growth prospects, and the rationale behind insider buying.

References

[1] https://finance.yahoo.com/news/3-undervalued-small-caps-insider-113934512.html