In the United States, major indices like the S&P 500 and Dow Jones Industrial Average have recently reached new highs, reflecting a market that seems resilient despite ongoing concerns such as the DOJ probe into Fed Chair Powell. This environment of record-setting performance in large-cap stocks often prompts investors to explore opportunities in small-cap companies, which can offer unique growth potential. Identifying promising small-cap stocks requires careful consideration of factors such as financial health and market positioning, especially in a dynamic economic landscape.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Wolverine World Wide	17.7x	0.8x	36.45%	★★★★★☆
First United	9.8x	2.9x	45.51%	★★★★★☆
Shore Bancshares	10.5x	2.8x	44.17%	★★★★☆☆
Metropolitan Bank Holding	13.0x	3.2x	33.47%	★★★★☆☆
Union Bankshares	9.9x	2.1x	21.16%	★★★★☆☆
Stock Yards Bancorp	14.5x	5.2x	34.47%	★★★☆☆☆
DorianG	12.7x	3.4x	12.38%	★★★☆☆☆
Angel Oak Mortgage REIT	12.8x	6.4x	36.67%	★★★☆☆☆
Farmland Partners	6.7x	8.3x	-99.67%	★★★☆☆☆
Vestis	NA	0.3x	-6.04%	★★★☆☆☆

Let's explore several standout options from the results in the screener.

Citizens Financial Services (CZFS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Citizens Financial Services operates primarily in the community banking sector, with a market cap of $0.31 billion.

Operations: Citizens Financial Services generates revenue primarily from its community banking operations, with recent figures indicating $107.40 million in revenue. The company consistently achieves a gross profit margin of 100%, highlighting that all reported revenues translate directly into gross profit. Operating expenses have been increasing over time, with general and administrative expenses being a significant component, reaching $49.98 million in the latest period. The net income margin has shown variability, recently recorded at 31.72%.

PE: 8.5x

Citizens Financial Services, a smaller player in the financial sector, shows potential for being undervalued. Recent earnings reveal net income of US$10.01 million for Q3 2025, up from US$7.54 million the previous year, signaling strong performance. Insider confidence is evident with share repurchases totaling 6,797 shares for US$0.37 million by September 2025. Additionally, a quarterly dividend of US$0.50 per share was declared in December 2025, reflecting solid shareholder returns and growth prospects projected at 4% annually.

ADTRAN Holdings (ADTN)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: ADTRAN Holdings specializes in providing network solutions and services, with a market cap of approximately $1.36 billion.

Operations: ADTRAN Holdings generates revenue primarily from Network Solutions ($851.27 million) and Services & Support ($183.83 million). The company's gross profit margin has shown fluctuations, with a recent figure of 37.57%. Operating expenses are significant, with research and development being a major component at $199.21 million in the latest period.

PE: -9.7x

ADTRAN Holdings, a key player in network solutions, is capturing attention with its innovative fiber access technologies and AI-driven platforms. Recent partnerships, like with Henderson Municipal Power & Light, highlight their role in expanding broadband services using advanced fiber solutions. Despite a net loss of US$10.26 million for Q3 2025, revenue increased to US$279.44 million from the previous year’s US$227.7 million. Insider confidence is evident as insiders have been purchasing shares over the past few months, reflecting belief in future growth potential amidst ongoing challenges such as reliance on external borrowing for funding.

Midland States Bancorp (MSBI)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Midland States Bancorp is a diversified financial services company providing banking and wealth management services, with a market capitalization of approximately $0.5 billion.

Operations: The company's revenue is primarily driven by its Banking segment, which contributes $193.44 million, complemented by Wealth Management at $30.34 million. The Corporate segment shows a negative contribution of -$12.83 million to the overall revenue structure. Operating expenses are significant, with General & Administrative Expenses consistently being the largest component over multiple periods, reaching up to $156.77 million in recent data points. Notably, the net income margin has displayed variability over time, recently turning negative at -76.38%.

PE: -2.9x

Midland States Bancorp, a smaller player in the banking sector, is drawing attention for its potential value. Notably, insider confidence is evident as their EVP & Chief Credit Officer purchased 5,598 shares worth approximately US$99K in recent months. Despite a dip in net income to US$7.56 million for Q3 2025 from US$20.43 million the previous year, earnings are projected to grow significantly by over 100% annually. The company also announced a share repurchase program up to US$25 million and maintained dividends on both common and preferred stocks, indicating strategic financial maneuvers amidst executive transitions set for early 2026.

Key Takeaways

• Click this link to deep-dive into the 77 companies within our Undervalued US Small Caps With Insider Buying screener.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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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.