Over the last 7 days, the United States market has risen by 5.2% and is up 9.9% over the past year, with earnings expected to grow by 14% annually in the coming years. In this favorable environment, identifying small-cap stocks that are potentially undervalued and have insider buying can offer intriguing opportunities for investors seeking to capitalize on current market dynamics.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Click here to see the full list of 89 stocks from our Undervalued US Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

Mid Penn Bancorp

Simply Wall St Value Rating: ★★★★☆☆

Overview: Mid Penn Bancorp operates as a full-service commercial banking and trust business with a market capitalization of approximately $0.37 billion.

Operations: The company generates revenue primarily through its Full-Service Commercial Banking and Trust Business, with recent quarterly revenue reaching $181.87 million. Operating expenses are a significant cost factor, totaling $112.83 million in the latest period, with General & Administrative Expenses accounting for $91.50 million of this amount. The net income margin has shown variability over time, most recently recorded at 28.07%.

PE: 11.0x

Mid Penn's recent financials reveal a net interest income of US$42.51 million for Q1 2025, up from US$36.46 million the previous year, alongside net income growth to US$13.74 million. Despite a slight drop in earnings per share from continuing operations, insider confidence is evident through recent share purchases by key figures within the company. The board's decision to declare a cash dividend of $0.20 per common share underscores its commitment to shareholder returns amidst ongoing merger discussions with William Penn Bancorporation.

• Take a closer look at Mid Penn Bancorp's potential here in our valuation report.

• Assess Mid Penn Bancorp's past performance with our detailed historical performance reports.

Capital Southwest

Simply Wall St Value Rating: ★★★★★☆

Overview: Capital Southwest is a business development company that provides capital to support the acquisition and growth of middle-market companies, with a market cap of $0.59 billion.

Operations: The company generates its revenue primarily through investment activities, with recent figures reaching $198.46 million. Operating expenses have been significant, with general and administrative expenses consistently around $25.51 million in the latest period. The net income margin has shown variability, standing at 33.49% in the most recent quarter analyzed.

PE: 15.6x

Capital Southwest, a small company in the U.S., is gaining attention for its potential value. Despite a dip in profit margins from 52.2% to 33.5%, earnings are projected to grow by 35.86% annually, indicating future potential. The company's reliance on external borrowing signals higher risk, but recent insider confidence through share purchases suggests optimism about its prospects. With new leadership and an SBIC license enhancing investment capabilities, Capital Southwest is poised for strategic growth within its sector.

• Get an in-depth perspective on Capital Southwest's performance by reading our valuation report here.

• Understand Capital Southwest's track record by examining our Past report.

Cooper-Standard Holdings

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Cooper-Standard Holdings specializes in manufacturing and supplying systems and components for the automotive industry, with a focus on sealing and fluid handling systems, and has a market capitalization of $1.18 billion.

Operations: Sealing Systems and Fluid Handling Systems are the primary revenue drivers, contributing significantly to the company's overall earnings. The gross profit margin has shown a notable trend, starting at 15.38% in mid-2014 and experiencing fluctuations before reaching 11.09% by late 2024.

PE: -3.3x

Cooper-Standard Holdings, a player in the automotive sector, has seen insider confidence with Lead Independent Director David Mastrocola acquiring 8,000 shares for US$118,551. Despite its small size and recent volatility, the company reported a turnaround in Q4 2024 with net income of US$40.21 million against a prior year's loss. However, it remains unprofitable long-term and relies entirely on external borrowing for funding. Sales projections for 2025 range between US$2.7 billion and US$2.8 billion.

• Click here and access our complete valuation analysis report to understand the dynamics of Cooper-Standard Holdings.

• Explore historical data to track Cooper-Standard Holdings' performance over time in our Past section.

Key Takeaways

• Investigate our full lineup of 89 Undervalued US Small Caps With Insider Buying right here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGM:MPB NasdaqGS:CSWC and NYSE:CPS.

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