Over the last 7 days, the United States market has experienced a slight decline of 1.6%, though it has shown robust growth over the past year with a 30% increase, and earnings are projected to grow by 15% annually. In this dynamic environment, identifying small-cap stocks with potential insider action can offer unique opportunities for investors seeking to capitalize on market trends.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Bloomin' Brands is a restaurant company that operates a portfolio of casual dining brands, primarily in the United States and internationally, with a market capitalization of approximately $2.44 billion.
Operations: Bloomin' Brands generates revenue primarily from its operations in the United States and international markets, with total revenue reaching $4.67 billion as of December 2023. The company's cost structure is heavily influenced by Cost of Goods Sold (COGS), which was approximately $3.86 billion for the same period, impacting its gross profit margin, which stood at 17.34%. Operating expenses include significant allocations to depreciation and amortization, as well as general and administrative costs. Net income margin has shown variability over recent periods, reflecting changes in both operating performance and non-operating expenses.
PE: 43.6x
Bloomin' Brands, a smaller U.S. company, is navigating financial challenges with recent insider confidence shown through share purchases. Between April and August 2024, the company repurchased nearly 3 million shares for US$69.8 million, signaling potential value recognition internally. Despite a dip in second-quarter earnings to US$28.4 million from US$68.28 million last year and lowered full-year guidance, the new CEO's leadership could steer strategic growth amidst increased debt capacity following a revised credit agreement in September 2024.
Overview: PRA Group specializes in accounts receivable management, focusing on the purchase and collection of nonperforming loans, with a market cap of approximately $1.35 billion.
Operations: PRA Group's revenue primarily comes from its Accounts Receivable Management segment, with recent figures reaching $977.66 million. The company has consistently achieved a gross profit margin of 100%, indicating that there are no direct costs associated with the revenue reported. Operating expenses and non-operating expenses are significant, with general and administrative expenses being a major component of operating costs. Despite fluctuations in net income, the latest net income margin stands at 0.40%.
PE: 201.3x
PRA Group, a small company in the U.S., has been catching attention with its recent financial maneuvers. They extended their North American and UK credit agreements to 2029, maintaining interest rates at 2.25% and 2.75%, respectively, securing $2.3 billion in commitments. Despite relying solely on external borrowing for funding, insider confidence is evident with Geir Olsen purchasing 11,750 shares worth US$251K from April to June 2024. Revenue for Q2 surged to US$284 million from US$209 million year-on-year, turning a previous net loss into a profit of US$21 million.
Overview: Custom Truck One Source specializes in providing truck and equipment sales, aftermarket parts and services, and equipment rental solutions, with a market cap of approximately $1.88 billion.
Operations: The company generates revenue primarily from Truck and Equipment Sales, Aftermarket Parts and Services, and Equipment Rental Solutions. The cost of goods sold (COGS) represents a significant portion of expenses, impacting the gross profit margin which fluctuated between 15.81% in 2016 to 24.90% in mid-2023 before declining slightly to 22.11% by late 2024. Operating expenses include general and administrative costs as well as non-operating expenses such as interest, which have varied over time affecting net income outcomes.
PE: -23.8x
Custom Truck One Source, a smaller U.S. company, has seen insider confidence with share purchases in recent months, signaling potential value. Despite reporting a net loss of US$17.42 million for Q3 2024 and declining sales compared to last year, the company forecasts significant earnings growth of 134% annually. With revenue guidance between US$1.8 billion and US$1.98 billion for 2024 and recent share repurchases totaling over US$16 million, there's an indication of strategic positioning amid industry challenges.
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.
