Undervalued Small Caps With Insider Action To Watch In August 2026

Over the last 7 days, the United States market has remained flat, yet it has experienced an impressive 18% increase over the past year with earnings forecasted to grow by 17% annually. In this environment, identifying small-cap stocks that are potentially undervalued and exhibit insider activity can offer unique opportunities for investors seeking to capitalize on future growth.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Regional Management	6.4x	0.5x	35.41%	★★★★★★
Shore Bancshares	11.7x	3.4x	36.05%	★★★★★☆
Bank of the James Financial Group	10.7x	2.4x	27.93%	★★★★☆☆
Union Bankshares	9.6x	2.0x	45.34%	★★★★☆☆
Cardinal Infrastructure Group	NA	1.2x	22.23%	★★★★☆☆
Five Star Bancorp	15.5x	6.7x	43.68%	★★★☆☆☆
German American Bancorp	13.2x	4.9x	25.28%	★★★☆☆☆
Franklin Financial Services	11.3x	3.1x	-39.14%	★★★☆☆☆
Orion Group Holdings	104.2x	0.4x	44.42%	★★★☆☆☆
Ring Energy	NA	1.2x	-665.19%	★★★☆☆☆

Click here to see the full list of 60 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

River City Bank (RCBC)

Simply Wall St Value Rating: ★★★★☆☆

Overview: River City Bank is a financial institution primarily engaged in banking operations, with a market cap of $1.25 billion.

Operations: RCBC generates revenue primarily from its banking operations, with recent figures showing $154.93 million in revenue. The company consistently reports a gross profit margin of 100%, indicating that all reported revenues translate directly into gross profit. Operating expenses have been increasing, reaching $44.34 million recently, impacting the net income which was last recorded at $78.26 million with a net income margin of 50.51%.

PE: 9.1x

River City Bank, recently added to the NASDAQ Composite Index, has shown promising growth with a net income of US$19.62 million in Q2 2026, up from US$15.41 million the previous year. Their IPO raised US$121.5 million by offering 2.7 million shares at a discounted price of $45 each. Insider confidence is evident with recent purchases, signaling potential value recognition within this small company segment amidst competitive market conditions.

• Get an in-depth perspective on River City Bank's performance by reading our valuation report here.

• Evaluate River City Bank's historical performance by accessing our past performance report.

Funko (FNKO)

Simply Wall St Value Rating: ★★★★★☆

Overview: Funko is a company that specializes in designing, producing, and selling pop culture-themed consumer products, primarily within the games and toys segment.

Operations: The company's revenue comes from its Games & Toys segment, amounting to $932.64 million. The gross profit margin has shown fluctuations, reaching 42.18% in the most recent period. Operating expenses are a significant part of the cost structure, with general and administrative expenses being a major component at $280.28 million in the latest quarter.

PE: -201.5x

Funko's recent financial performance indicates a turnaround, with Q2 2026 sales reaching US$207.72 million, up from US$193.47 million the previous year, and net income hitting US$15.38 million against last year's loss of US$40.49 million. The appointment of Kristin Hamilton as Chief Commercial Officer is expected to drive further growth and market expansion across its brands. Despite relying on external borrowing for funding, insider confidence remains high with significant share purchases noted recently, suggesting optimism in future prospects.

• Delve into the full analysis valuation report here for a deeper understanding of Funko.

• Examine Funko's past performance report to understand how it has performed in the past.

Gloo Holdings (GLOO)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Gloo Holdings operates in the technology sector, focusing on innovative software solutions, with a market capitalization of $1.75 billion.

Operations: The primary revenue stream for GLOO comes from its Gloo Segment, with recent figures showing $123.89 million. The company's cost structure includes significant expenses in COGS at $90.78 million and operating expenses at $137.94 million, which encompass sales & marketing, R&D, and general & administrative costs. Gross profit margin has shown variability but recently stood at 26.72%.

PE: -1.8x

Gloo Holdings, a small company in the U.S., has been actively pursuing growth through strategic acquisitions and expanding its platform. Recently, they completed a follow-on equity offering of US$22.75 million to bolster their financial position. Despite reporting a net loss of US$16.82 million for Q1 2026, revenue surged to US$41.53 million from US$12.3 million the previous year, showcasing significant growth potential. The company has raised its fiscal 2026 revenue guidance to US$195 million, reflecting confidence in future performance despite relying on higher-risk external borrowing for funding needs without customer deposits as liabilities.

• Click here and access our complete valuation analysis report to understand the dynamics of Gloo Holdings.

• Assess Gloo Holdings' past performance with our detailed historical performance reports.

Taking Advantage

• Click through to start exploring the rest of the 57 Undervalued US Small Caps With Insider Buying now.
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Curious About Other Options?

• 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.

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