<div id="readability-page-1"><div><p>As the U.S. stock market wraps up a holiday-shortened week with all major indices logging over 1% gains, investors are keenly observing the performance of small-cap stocks, often seen as barometers for domestic economic health. Amidst this backdrop, identifying promising small-cap opportunities involves looking at those with strong fundamentals and potential insider action that might indicate confidence in their future prospects.</p><h3>Top 10 Undervalued Small Caps With Insider Buying In The United States</h3><table><tbody><tr><th>Name</th><th>PE</th><th>PS</th><th>Discount to Fair Value</th><th>Value Rating</th></tr><tr><td>Merchants Bancorp</td><td>7.7x</td><td>2.6x</td><td>48.83%</td><td>★★★★★★</td></tr><tr><td>Wolverine World Wide</td><td>16.9x</td><td>0.8x</td><td>38.41%</td><td>★★★★★☆</td></tr><tr><td>Shore Bancshares</td><td>10.5x</td><td>2.8x</td><td>40.28%</td><td>★★★★☆☆</td></tr><tr><td>Metropolitan Bank Holding</td><td>12.7x</td><td>3.1x</td><td>30.18%</td><td>★★★★☆☆</td></tr><tr><td>MVB Financial</td><td>10.2x</td><td>1.9x</td><td>-9.73%</td><td>★★★★☆☆</td></tr><tr><td>S&amp;T Bancorp</td><td>11.6x</td><td>3.9x</td><td>36.62%</td><td>★★★★☆☆</td></tr><tr><td>Farmland Partners</td><td>6.3x</td><td>7.8x</td><td>-88.36%</td><td>★★★★☆☆</td></tr><tr><td>Stock Yards Bancorp</td><td>14.5x</td><td>5.2x</td><td>35.38%</td><td>★★★☆☆☆</td></tr><tr><td>Omega Flex</td><td>18.5x</td><td>3.0x</td><td>0.40%</td><td>★★★☆☆☆</td></tr><tr><td>Vestis</td><td>NA</td><td>0.3x</td><td>-7.70%</td><td>★★★☆☆☆</td></tr></tbody></table><p> Click here to see the full list of 81 stocks from our Undervalued US Small Caps With Insider Buying screener.     </p><p>We'll examine a selection from our screener results.</p><h2>Bloomin' Brands (BLMN)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★☆☆☆</p><p><strong>Overview:</strong> Bloomin' Brands operates a portfolio of restaurant brands, primarily in the United States, with a market capitalization of approximately $2.02 billion.</p><p><strong>Operations:</strong> The company generates revenue primarily from its U.S. operations, complemented by international franchise earnings. Over the observed periods, the gross profit margin has fluctuated, with recent figures showing a decline to 13.58% in late 2025 from a peak of 17.82% in late 2021. The cost of goods sold constitutes a significant portion of expenses, impacting overall profitability trends across different time frames.</p><p><strong>PE:</strong> 18.3x</p><p>Bloomin' Brands, a smaller U.S. company, is drawing attention for its potential value amidst insider confidence. Recently, Eric Christel purchased 150,000 shares for US$957,000 in November 2025. Despite reporting a Q3 net loss of US$45.86 million and suspending dividends as part of its turnaround strategy, the company forecasts earnings per share between US$0.75 and US$0.80 for 2025. Its reliance on external borrowing poses risks but also underscores growth opportunities in the restaurant industry.</p><ul><li>Dive into the specifics of Bloomin' Brands here with our thorough valuation report.</li><li>Gain insights into Bloomin' Brands' historical performance by reviewing our past performance report.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/20d56171-dcce-43a1-a0c4-f8fdb5870442/chart/ownership-breakdown?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/20d56171-dcce-43a1-a0c4-f8fdb5870442/chart/ownership-breakdown?"/><figcaption>BLMN Ownership Breakdown as at Dec 2025</figcaption></figure><h2>Arbor Realty Trust (ABR)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★★★☆</p><p><strong>Overview:</strong> Arbor Realty Trust is a real estate investment trust that specializes in providing loan origination and servicing for multifamily, single-family rental, and commercial real estate markets, with a market capitalization of approximately $2.5 billion.</p><p><strong>Operations:</strong> Arbor Realty Trust generates revenue primarily from its Agency Business and Structured Business segments, with a notable gross profit margin of 92.28% as of September 2023. The company's operating expenses include significant general and administrative costs, which were $165.61 million in the same period.</p><p><strong>PE:</strong> 10.2x</p><p>Arbor Realty Trust, a smaller company in the U.S. financial sector, recently reported third-quarter sales of US$4.19 million, up from US$1.51 million the previous year, though net income decreased to US$48.81 million from US$68.52 million. Despite this mixed performance, insider confidence is evident with recent share purchases by executives in 2025, suggesting belief in future prospects despite current challenges like high-risk funding sources and lower earnings per share compared to last year.</p><ul><li>Get an in-depth perspective on Arbor Realty Trust's performance by reading our valuation report here.</li><li>Learn about Arbor Realty Trust's  historical performance.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c8a42e29-9946-4e7f-bf30-2df74a0a03ce/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c8a42e29-9946-4e7f-bf30-2df74a0a03ce/chart/dcf?"/><figcaption>ABR Share price vs Value as at Dec 2025</figcaption></figure><h2>Dine Brands Global (DIN)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★★★☆</p><p><strong>Overview:</strong> Dine Brands Global operates a portfolio of well-known restaurant brands, including Applebee's and IHOP, with diverse revenue streams from franchise operations, company restaurants, rental operations, and financing activities.</p><p><strong>Operations:</strong> Dine Brands Global generates revenue primarily through franchise operations, including IHOP, Applebee's, and Fuzzy's, as well as rental and company restaurant operations. The company's gross profit margin has shown variability over the years, with a recent figure of 47.58%. Operating expenses are significant and include general and administrative costs that have been consistently high.</p><p><strong>PE:</strong> 14.9x</p><p>Dine Brands Global, a company with a smaller market capitalization, recently showcased insider confidence through share purchases by their CEO and Applebee's President &amp; Director, John Peyton. They acquired 4,523 shares for approximately US$100K in the third quarter of 2025. Despite facing lower net profit margins at 3.8% compared to last year's 11.1%, the firm is on track with its expansion plans and completed significant share repurchases totaling nearly US$147 million since early 2022. While interest payments remain a concern due to reliance on external borrowing, revenue growth remains strong at US$661.73 million for the first nine months of 2025 compared to US$607.54 million in the previous year, indicating potential for future growth amidst strategic expansions and franchisee enthusiasm.</p><ul><li>Click here to discover the nuances of Dine Brands Global with our detailed analytical valuation report.</li><li>Evaluate Dine Brands Global's historical performance by accessing our past performance report.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6fb14649-e75a-4c6f-86bf-6a603f3d151e/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6fb14649-e75a-4c6f-86bf-6a603f3d151e/chart/dcf?"/><figcaption>DIN Share price vs Value as at Dec 2025</figcaption></figure><h2>Turning Ideas Into Actions</h2><ul><li>Explore the 81 names from our Undervalued US Small Caps With Insider Buying screener here.</li><li>Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.</li><li>Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.</li></ul><h2>Curious About Other Options?</h2><ul><li>Explore high-performing small cap companies that haven't yet garnered significant analyst attention.</li><li>Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.</li><li>Find companies with promising cash flow potential yet trading below their fair value.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>As the U.S. stock market sees gains, investors are focusing on small-cap stocks as indicators of economic health. A list of top undervalued small caps with insider buying includes Merchants Bancorp, Wolverine World Wide, and Bloomin' Brands, which has seen insider purchases despite recent losses. Arbor Realty Trust and Dine Brands Global also show insider confidence, with significant share purchases and potential for growth despite challenges. These companies are highlighted for their strong fundamentals and insider actions that suggest future prospects.</p>

Undervalued Small Caps With Insider Action In December 2025