Over the last 7 days, the United States market has risen 2.4%, contributing to a robust 20% increase over the past year, with earnings expected to grow by 17% annually. In this dynamic environment, identifying small-cap stocks that are potentially undervalued and exhibit insider action can offer unique opportunities for investors seeking to capitalize on growth potential.

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	44.37%	★★★★★☆
Kingstone Companies	9.4x	1.3x	35.61%	★★★★☆☆
Similarweb	NA	2.2x	18.06%	★★★★☆☆
Onterris	179.7x	1.0x	24.37%	★★★★☆☆
AVITA Medical	NA	2.0x	5.85%	★★★★☆☆
German American Bancorp	13.5x	5.1x	38.19%	★★★☆☆☆
Union Bankshares	9.0x	1.9x	14.21%	★★★☆☆☆
Bank of the James Financial Group	10.7x	2.4x	28.18%	★★★☆☆☆
Shore Bancshares	12.4x	3.6x	45.23%	★★★☆☆☆
Angel Studios	NA	2.0x	13.67%	★★★☆☆☆

Underneath we present a selection of stocks filtered out by our screen.

Hudson Technologies (HDSN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hudson Technologies specializes in refrigerant services and solutions, with operations focused on the wholesale distribution of miscellaneous products, and has a market capitalization of approximately $1.25 billion.

Operations: Hudson Technologies generates revenue primarily through its wholesale miscellaneous segment, with recent figures at $251.42 million. The company has experienced fluctuations in its gross profit margin, reaching a high of 52.15% and more recently recorded at 24.61%. Operating expenses are a significant component, with general and administrative expenses consistently forming a substantial part of these costs.

PE: 18.4x

Hudson Technologies, a player in the refrigerants and compressed gases sector, recently extended its Defense Logistics Agency contract until November 2026, with potential further extensions. Despite challenges from a bid protest, they maintain service continuity under the current agreement. Financially, Q1 2026 saw sales rise to US$60.15 million but net income dropped to US$0.33 million from US$2.76 million last year. Insider confidence is evident with recent share repurchases totaling 416,480 shares for US$2.49 million by March 31, 2026. Earnings are expected to grow annually by over 17%.

Energy Recovery (ERII)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Energy Recovery specializes in designing and manufacturing energy-efficient solutions for industrial fluid flow processes, with a market cap of approximately $1.55 billion.

Operations: The company generates revenue primarily from its core segments, with significant contributions from Segment Adjustment. Over the observed periods, gross profit margin has shown variability, peaking at 79.77% and dipping to 64.27%. Operating expenses are a major cost component, with notable allocations to sales & marketing and R&D activities.

PE: 22.3x

Energy Recovery, a player in energy-efficient technologies, is making strides with its recent approval for a subzone in California and expansion into Saudi Arabia. The company's new facility will bolster its Middle Eastern operations, aligning with Vision 2030 goals. Despite facing challenges like a net loss of US$12.25 million in Q1 2026 and reliance on external borrowing, the firm shows promise with forecasted earnings growth of 16.63% annually. Insider confidence is evident as they recently repurchased shares worth US$10.66 million from January to March 2026, signaling potential value recognition within the company’s ranks.

German American Bancorp (GABC)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: German American Bancorp is a financial services company that provides banking, insurance, and investment services primarily in Indiana and Kentucky, with a market capitalization of approximately $0.92 billion.

Operations: German American Bancorp's revenue has shown a consistent upward trend, reaching $379.75 million by mid-2026. The company's net income margin fluctuated over the years, peaking at 37.41% in June 2026. Operating expenses have also increased significantly, with general and administrative expenses being the largest cost component at $156.15 million during the same period.

PE: 13.5x

German American Bancorp, a smaller U.S. financial institution, recently reported impressive earnings growth with net income reaching US$38.17 million in Q2 2026, up from US$31.36 million the previous year. Their basic earnings per share rose to US$1.02 from US$0.84, highlighting strong performance amid economic challenges. Insider confidence is evident as they increased their holdings recently, suggesting optimism about future prospects despite some impairments reported at US$673,000 for the quarter ending June 30, 2026.

Summing It All Up

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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.