---
title: "Exploring Undervalued Small Caps With Insider Action In August 2026"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294813939.md"
description: "The article highlights undervalued US small-cap stocks with insider buying in August 2026, noting a robust market environment. It details three specific companies: Hudson Technologies (HDSN), which extended a Defense Logistics Agency contract and saw insider repurchases; Energy Recovery (ERII), expanding into Saudi Arabia despite recent losses; and German American Bancorp (GABC), reporting strong Q2 earnings growth. These selections are part of a broader screener identifying 58 such opportunities for investors."
datetime: "2026-08-04T11:13:14.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294813939.md)
  - [en](https://longbridge.com/en/news/294813939.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294813939.md)
generator: "portal-rs"
---

# Exploring Undervalued Small Caps With Insider Action In August 2026

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%                 | ★★★☆☆☆       |

Click here to see the full list of 58 stocks from our Undervalued US Small Caps With Insider Buying screener. 

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%.

-   Take a closer look at Hudson Technologies' potential here in our valuation report.
-   Assess Hudson Technologies' past performance with our detailed historical performance reports.

HDSN Ownership Breakdown as at Aug 2026

## 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.

-   Click here and access our complete valuation analysis report to understand the dynamics of Energy Recovery.
-   Learn about Energy Recovery's historical performance.

ERII Ownership Breakdown as at Aug 2026

## 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.

-   Dive into the specifics of German American Bancorp here with our thorough valuation report.
-   Gain insights into German American Bancorp's historical performance by reviewing our past performance report.

GABC Share price vs Value as at Aug 2026

## Summing It All Up

-   Gain an insight into the universe of 58 Undervalued US Small Caps With Insider Buying by clicking here.
-   Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
-   Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

## Seeking Other Investments?

-   Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
-   Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
-   Find companies with promising cash flow potential yet trading below their fair value.

 *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.*

### Valuation is complex, but we're here to simplify it.

Discover if Energy Recovery might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.**

Access Free Analysis

### Related Stocks

- [GABC.US](https://longbridge.com/en/quote/GABC.US.md)
- [HDSN.US](https://longbridge.com/en/quote/HDSN.US.md)
- [ERII.US](https://longbridge.com/en/quote/ERII.US.md)
- [ILPT.US](https://longbridge.com/en/quote/ILPT.US.md)
- [KINS.US](https://longbridge.com/en/quote/KINS.US.md)
- [SMWB.US](https://longbridge.com/en/quote/SMWB.US.md)
- [ONT.US](https://longbridge.com/en/quote/ONT.US.md)
- [RCEL.US](https://longbridge.com/en/quote/RCEL.US.md)
- [UNB.US](https://longbridge.com/en/quote/UNB.US.md)
- [BOTJ.US](https://longbridge.com/en/quote/BOTJ.US.md)
- [SHBI.US](https://longbridge.com/en/quote/SHBI.US.md)
- [ANGX.US](https://longbridge.com/en/quote/ANGX.US.md)

## Related News & Research

- [German American Bancorp director Jason M. Kelly reports acquisition of 48 common shares for $2,500.52](https://longbridge.com/en/news/296260927.md)
- [German American Bancorp Inc. Takes $3.38 Million Position in Danaher Corporation $DHR](https://longbridge.com/en/news/296074322.md)
- [This Former Small-Cap Darling Is in Freefall, But I Like the Stock Here](https://longbridge.com/en/news/296374899.md)
- [The small-cap premium was supposed to beat large caps over time. It hasn't in 15 years. Here's the actual gap.](https://longbridge.com/en/news/296381780.md)
- [AES declares Q3 2026 distribution of R$ 0.62 per unit, payable Aug. 20](https://longbridge.com/en/news/296242373.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**