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Exploring August 2026's Undervalued Small Caps With Notable Insider Activity
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In the last week, the United States market has stayed flat, yet it is up 18% over the past year with earnings expected to grow by 17% annually in the coming years. In this context of steady growth and potential future gains, identifying small-cap stocks with notable insider activity can provide investors with opportunities to explore potentially undervalued assets.

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

Name PE PS Discount to Fair Value Value Rating
Shore Bancshares 11.6x 3.3x 36.18% ★★★★★☆
Kingstone Companies 8.2x 1.2x 42.74% ★★★★★☆
Enovis NA 0.6x 22.71% ★★★★★☆
Bank of Marin Bancorp NA 7.1x 31.75% ★★★★☆☆
Union Bankshares 9.7x 2.1x 44.99% ★★★★☆☆
Bank of the James Financial Group 10.6x 2.4x 28.49% ★★★★☆☆
German American Bancorp 13.1x 4.9x 25.73% ★★★☆☆☆
Alerus Financial 29.9x 3.4x 47.50% ★★★☆☆☆
Cardinal Infrastructure Group NA 1.3x 40.27% ★★★☆☆☆
Orion Group Holdings 104.9x 0.4x 43.54% ★★★☆☆☆

Click here to see the full list of 56 stocks from our Undervalued US Small Caps With Insider Buying screener.

We're going to check out a few of the best picks from our screener tool.

Primis Financial (FRST)

Simply Wall St Value Rating: ★★★★★☆

Overview: Primis Financial operates primarily through its segments Primis Bank and Primis Mortgage, with a market capitalization of $0.35 billion.

Operations: Primis Financial generates revenue primarily through its banking and mortgage operations, with Primis Bank contributing $168.96 million and Primis Mortgage adding $51.26 million. The company has consistently reported a gross profit margin of 100%, indicating that its cost of goods sold is negligible or not applicable in the financial data provided. Operating expenses are significant, with general and administrative expenses being a major component, impacting the net income margin which has shown variability over recent periods.

PE: 7.5x

Primis Financial, a smaller player in the financial sector, recently showcased strong financial results with net interest income rising to US$33.76 million for Q2 2026 from US$25.18 million a year prior. Despite this, earnings per share dropped over six months due to lower net income of US$16.74 million compared to US$25.07 million previously, reflecting potential challenges ahead. Notably absent was insider confidence through share purchases recently, though its inclusion in multiple Russell indexes highlights market recognition of its growth potential amidst evolving conditions.

FRST Share price vs Value as at Aug 2026
FRST Share price vs Value as at Aug 2026

ADTRAN Holdings (ADTN)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: ADTRAN Holdings is a company that provides network solutions and services, with a focus on telecommunications infrastructure, and has a market capitalization of $1.35 billion.

Operations: ADTRAN Holdings generates revenue primarily from Network Solutions and Services & Support, with recent figures showing $946.04 million and $192.19 million, respectively. The gross profit margin has shown a varied trend over the years, most recently recorded at 38.46% in mid-2026. Operating expenses are largely driven by R&D and General & Administrative costs, which were $208.31 million and $230.80 million in the latest period reported, respectively.

PE: -28.8x

ADTRAN Holdings, a key player in the telecommunications sector, is gaining attention for its innovative solutions like Mosaic One Fabric and outage notification APIs. Their recent collaboration with Telephone Electronics Corporation showcases their technological prowess, enhancing network response capabilities. Although ADTRAN reported a net loss of US$10.91 million in Q2 2026, revenue increased to US$281.15 million from the previous year. Insider confidence is evident as they have been purchasing shares recently, indicating belief in future growth potential despite current financial challenges.

ADTN Ownership Breakdown as at Aug 2026
ADTN Ownership Breakdown as at Aug 2026

PicS (PICS)

Simply Wall St Value Rating: ★★★★☆☆

Overview: PicS is a technology company specializing in digital image processing and sharing services, with a market cap of R$3.45 billion.

Operations: PicS generates revenue primarily through its operations, with significant cost components including COGS and operating expenses. The company has shown a notable improvement in gross profit margin, reaching 93.20% as of September 30, 2025. Operating expenses are largely driven by General & Administrative and Sales & Marketing costs.

PE: 6.2x

PicS, a digital banking entity in Brazil, has seen significant growth with second-quarter revenue reaching BRL 4.1 billion and net income of BRL 270.19 million, up from the previous year. Despite its high-risk funding structure reliant on external borrowing, insider confidence is evident through recent share purchases. The company's innovative integration with ChatGPT enhances customer interaction via AI-driven financial inquiries. However, legal challenges loom due to alleged IPO misrepresentations impacting stock performance post-IPO. Earnings are projected to grow annually by 29%.

PICS Share price vs Value as at Aug 2026
PICS Share price vs Value as at Aug 2026

Turning Ideas Into Actions

  • Embark on your investment journey to our 56 Undervalued US Small Caps With Insider Buying selection here.
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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.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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