Small-cap stocks can offer big upside, especially when company insiders are buying shares with their own money.
When company insiders buy a stock with their own money, it’s usually because they think the stock is undervalued and has room to run.
Here are 10 undervalued small-cap stocks that insiders have been buying recently:
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Here are a few of our favorite stocks from this list:
Innodata Inc. (INOD)
- Market Cap: $1 billion
- Industry: Professional Services
- Analyst Upside: 103%
- P/E Ratio: 41x
Company Overview: Innodata Inc. (INOD) is a data engineering and AI services company that helps enterprises build and scale artificial intelligence by providing high-quality training data and related platforms. Its core segments include AI data solutions, digital content services, and knowledge process outsourcing.
Business Strategy: Innodata makes money by delivering data annotation, enrichment, and platform services to support clients’ AI and digital transformation initiatives. The company is positioning itself as a key partner for enterprises and AI developers seeking scalable, human-in-the-loop data solutions.
Recent Developments:
- Earnings & Profitability: Innodata has shown strong revenue growth, driven by demand for AI services, though profitability remains tight as it reinvests for scale.
- Business Growth Trends: The company is winning new enterprise clients and expanding its footprint in generative AI, which is expected to be a key area of future growth.
- Shareholder Returns: While not yet consistently profitable, the stock has seen significant momentum, reflecting investor optimism about its AI exposure.
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Consolidated Water Co. Ltd. (CWCO)
- Market Cap: $375 million
- Industry: Water Utilities
- Analyst Upside: 64%
- P/E Ratio: 27x
Company Overview: Consolidated Water Co. Ltd. (CWCO) is a water utility company that designs, builds, and operates water treatment and desalination plants, primarily in the Caribbean and the United States. It operates through four main segments: Retail, Bulk, Services, and Manufacturing.
Business Strategy: CWCO makes money by selling potable water to governments, utilities, and private customers, as well as offering plant construction and management services. The company is focused on growth through strategic acquisitions and large-scale infrastructure projects, including new desalination plants.
Recent Developments:
- Earnings & Profitability: Net income from continuing operations rose significantly in 2023, driven by strong performance across core segments.
- Business Growth Trends: CWCO is expanding through acquisitions and recently secured a major $200M+ desalination project in Hawaii.
- Shareholder Returns: Strong earnings growth and long-term infrastructure contracts have supported positive investor sentiment and potential for continued returns.
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Magnite (MGNI)
- Market Cap: $2 billion
- Industry: Media
- Analyst Upside: 23%
- P/E Ratio: 14
Company Overview: Magnite Inc. (MGNI) is a leading independent sell-side advertising technology company that helps publishers monetize their digital ad inventory across formats like desktop, mobile, and connected TV (CTV). Its platform supports real-time ad auctions and is used by media companies, broadcasters, and streaming platforms.
Business Strategy: Magnite makes money by taking a percentage of ad transactions that run through its platform. The company is focused on growing its footprint in CTV and streaming, where ad budgets are shifting, and is building strategic partnerships with major players in that space.
Recent Developments:
- Earnings & Profitability: Magnite reported strong Q4 performance with revenue growth and solid profitability, supported by cost controls and CTV strength.
- Business Growth Trends: CTV remains a key growth driver, with continued expansion in programmatic video advertising and increasing adoption among premium streaming platforms.
- Shareholder Returns: The company improved its balance sheet, lowered net leverage, and generated positive free cash flow. These moves will help the company create value for shareholders over the long term.
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TIKR Takeaway
When insiders are buying, it’s often a sign they see real long-term value. These are some small-cap stocks that might be worth a closer look for investors today.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
