Over the last 7 days, the United States market has remained flat, yet it has seen a significant rise of 28% over the past year with earnings expected to grow by 16% annually in the coming years. In this dynamic environment, identifying stocks that are potentially undervalued and exhibit insider buying can be an effective strategy for investors looking to capitalize on growth opportunities within small-cap companies.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Financial Institutions	8.8x	2.8x	48.99%	★★★★★☆
Ferroglobe	NA	0.7x	44.79%	★★★★★☆
1st Source	11.2x	4.2x	41.74%	★★★★☆☆
Aldeyra Therapeutics	NA	NA	47.50%	★★★★☆☆
Tennant	34.0x	1.2x	38.07%	★★★☆☆☆
German American Bancorp	12.1x	4.4x	45.63%	★★★☆☆☆
Bank of Marin Bancorp	NA	11.6x	35.87%	★★★☆☆☆
Union Bankshares	10.4x	2.2x	21.64%	★★★☆☆☆
New Peoples Bankshares	9.4x	2.2x	25.75%	★★★☆☆☆
Omega Flex	20.2x	3.0x	13.38%	★★★☆☆☆

Here's a peek at a few of the choices from the screener.

Burke & Herbert Financial Services (BHRB)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Burke & Herbert Financial Services operates primarily in the community banking sector and has a market capitalization of $0.49 billion.

Operations: The company generates revenue primarily from community banking, with recent figures reaching $340.71 million. Operating expenses are a significant part of the cost structure, with general and administrative expenses consistently forming a substantial portion. The net income margin has shown variability, with recent data indicating it at 34.21%.

PE: 8.3x

Burke & Herbert Financial Services, a smaller financial entity in the U.S., recently showcased insider confidence through share purchases, indicating potential growth. Their Q1 2026 earnings revealed steady net income at US$27.35 million. Despite a slight dip in net interest income to US$71.84 million, the company maintained its dividend at $0.55 per share, reflecting stability and shareholder commitment. With earnings projected to grow by 24% annually and low bad loan allowances at 87%, they present an intriguing opportunity for investors seeking value in smaller companies with growth potential.

Nutex Health (NUTX)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Nutex Health operates a network of micro-hospitals and healthcare facilities, with a market cap of approximately $0.12 billion.

Operations: Nutex Health generates revenue primarily through its healthcare services, with notable fluctuations in gross profit margin over recent periods. The gross profit margin saw a decline to 0.13% by the end of 2022 but showed improvement reaching 0.51% by early 2026, indicating changes in cost management or pricing strategies. Operating expenses and non-operating expenses have varied significantly, impacting net income margins across different quarters.

PE: 10.0x

Nutex Health's recent financial performance highlights its potential as a small company with promising growth. For Q1 2026, revenue reached US$216.49 million, up from US$211.79 million the previous year, while net income more than doubled to US$46.81 million. Insider confidence is evident with share purchases over the past year, suggesting belief in future prospects despite high volatility and reliance on external borrowing for funding. A share repurchase program aims to enhance shareholder value further by offsetting dilution from stock compensation obligations related to new hospitals under construction and ramping up operations.

Bank of Marin Bancorp (BMRC)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Bank of Marin Bancorp is a community banking institution that provides a range of financial services, with operations primarily focused on serving local businesses and individuals.

Operations: The company generates revenue primarily from community banking, with a consistent gross profit margin of 100%. Operating expenses, including general and administrative costs, significantly impact net income. The net income margin has experienced fluctuations over the years, reaching as high as 33.59% in late 2022 before declining into negative territory by early 2026.

PE: -12.9x

Bank of Marin Bancorp, a smaller player in the banking sector, has been navigating challenges while maintaining shareholder returns. Recently, they affirmed a quarterly dividend of US$0.25 per share, signaling stability despite reporting net charge-offs of US$7.3 million for Q1 2026. The company completed a modest buyback program worth US$1.1 million and appointed Susan Ramirez as Principal Accounting Officer to strengthen financial oversight. Earnings are projected to grow significantly at 109% annually, suggesting potential long-term value amidst current hurdles.

Summing It All Up

• Click this link to deep-dive into the 66 companies within our Undervalued US Small Caps With Insider Buying screener.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• 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.