The United States market has shown a mixed performance recently, remaining flat over the last week but experiencing a notable 19% increase over the past year, with earnings projected to grow by 17% annually. In such an environment, identifying stocks that are potentially undervalued and have insider activity can be key for investors seeking opportunities in smaller companies poised for growth.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Industrial Logistics Properties Trust	NA	1.3x	44.87%	★★★★★★
Onterris	NA	0.7x	49.63%	★★★★★☆
Bank of Marin Bancorp	NA	7.5x	27.61%	★★★★☆☆
Kingstone Companies	7.8x	1.2x	45.16%	★★★★☆☆
German American Bancorp	13.3x	5.0x	24.83%	★★★☆☆☆
Union Bankshares	9.3x	2.0x	13.46%	★★★☆☆☆
Shore Bancshares	12.0x	3.5x	34.29%	★★★☆☆☆
Orion Group Holdings	109.8x	0.4x	44.85%	★★★☆☆☆
AVITA Medical	NA	3.4x	-10.62%	★★★☆☆☆
Chain Bridge Bancorp	11.9x	4.8x	48.78%	★★★☆☆☆

Let's uncover some gems from our specialized screener.

Alerus Financial (ALRS)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Alerus Financial operates in the financial services industry, providing banking, wealth advisory, and retirement and benefit services with a market cap of $0.43 billion.

Operations: The company generates revenue primarily from Banking Including Mortgage ($146.94 million), Wealth Advisory Services ($28.94 million), and Retirement and Benefit Services ($68.51 million). Operating expenses are significant, with General & Administrative Expenses consistently accounting for a substantial portion of costs, such as $155.37 million in the latest period. The net income margin has shown variability, reaching 18.17% at its peak in recent periods before declining to 11.40%.

PE: 30.2x

Alerus Financial, a smaller company in the U.S. market, recently reported strong financial performance for Q2 2026 with net interest income rising to US$47.71 million from US$43.03 million last year and net income at US$20.87 million compared to US$20.25 million previously. Insider confidence is evident with recent share purchases, suggesting optimism about future prospects amid a forecasted 40.56% annual earnings growth rate, though they face challenges like net charge-offs of US$2.58 million this quarter down from last year's higher figure of $3.77 million.

FTAI Infrastructure (FIP)

Simply Wall St Value Rating: ★★★★☆☆

Overview: FTAI Infrastructure focuses on the acquisition and development of infrastructure and equipment for transportation, energy, and related sectors, with a market cap of approximately $1.02 billion.

Operations: FTAI Infrastructure generates revenue primarily through its operations, with recent figures showing $659.21 million in Q2 2026. The company's cost of goods sold (COGS) was $395.83 million for the same period, resulting in a gross profit margin of 39.95%. Operating expenses include significant depreciation and amortization costs, contributing to consistent net losses over recent periods.

PE: -0.9x

FTAI Infrastructure, a smaller company in the U.S., has recently declared a $0.03 per share dividend for Q2 2026, despite reporting increased sales of US$186.77 million compared to US$122.29 million last year. However, the net loss widened significantly to US$161.95 million from US$79.82 million previously, highlighting ongoing financial challenges with high-risk funding sources and no profitability forecast over the next three years. Insider confidence is reflected through recent stock purchases by insiders during this period, suggesting potential long-term faith in its strategy amidst current operational hurdles.

Industrial Logistics Properties Trust (ILPT)

Simply Wall St Value Rating: ★★★★★★

Overview: Industrial Logistics Properties Trust focuses on owning and leasing industrial and logistics properties, with a market cap of approximately $0.45 billion.

Operations: The company's primary revenue stream is derived from the ownership and leasing of properties, generating $455.39 million in revenue. The gross profit margin has shown a consistent trend, reaching 85.77% as of the latest period. Operating expenses and non-operating expenses significantly impact net income, resulting in a net income margin of -10.38%.

PE: -12.5x

Industrial Logistics Properties Trust, a smaller player in the logistics real estate sector, recently reported a narrowing net loss of US$14.46 million for Q2 2026 compared to last year’s US$21.31 million, showing improvement despite ongoing unprofitability. The company secured significant leases totaling over 2.7 million square feet in strategic locations like Indiana and Hawaii, boosting occupancy to around 98%. Insider confidence is evident with recent share purchases, suggesting potential optimism about future prospects amid increased dividend payouts from US$0.05 to US$0.10 per share quarterly.

Key Takeaways

• Get an in-depth perspective on all 65 Undervalued US Small Caps With Insider Buying by using our screener here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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.