10 Undervalued Stocks with Latest Insider Purchases

Published on April 29, 2024 at 4:06 pm by Fahad Saleem in Hedge Funds, Insider Trading, News

In this article, we will take a detailed look at the 10 Undervalued Stocks with Latest Insider Purchases. For a quick overview of such stocks, read our article 5 Undervalued Stocks with Latest Insider Purchases.

Tracking insider trading has proven to be an interesting and, in many cases, a profitable activity over the past several decades. Academic and industry research has shown that when a stock is seeing heavy insider buying, more often than not it gains value in the long term. Stock valuations also play a key role in insider trading activities. In a research paper titled Are Insider Trades Informative? Josef Lakonishok from the University of Illinois at Urbana-Champaign and NBER and Inmoo Lee from Korea Advanced Institute of Science and Technology talked about some research which proves that insiders are “better informed” about their company prospects and they buy stocks when they are cheap. However, the researchers found that the market is slow to process and react to insider trading signals. They cited another research paper titled “Market Underreaction to Open Market Share Repurchases” which shows that companies that announce open market share repurchases have “prolonged positive abnormal returns.” This study said that one of the “main motivations for repurchases seems to be that insiders perceive the company’s stock as being cheap.”

Mimicking Insider Trades is Profitable

Tracking insider trading activity is also useful in international markets. In a 2008 research paper titled Some Insiders Are Indeed Smart Investors, researchers created a portfolio of stocks based on insider trades in the UK for the period between 1994 to 2006. This long-only strategy showed to have produced “economically and statistically significant return.” The researchers also said that tracking insider trades can be used as a “satellite strategy” to increase the returns of a “typical quant investment portfolio.”

How Can Outsiders Make the Best Use of Insider Trading Data?

While keeping track of insider trading activity, it’s also important to not allow yourself to dwell on irrelevant and “noisy” data. Sometimes insider buying transactions are not important at all. Sometimes they provide invaluable information. How can outsiders make the best use of publicly available insider trading data? One approach could be to focus on clean data and focus only on major transactions that were driven by a purpose. For example, in the 2008 research paper we mentioned above, all insider buying transactions without a comment from the insider on the purpose/explanation of the transaction having transaction value lower than £30,000 were excluded. The researchers also tried to remove low-quality data when it comes to news reporting following insider purchases. For that they divided news into three broader categories: executive changes, M&A news and business event news.

After cleaning insider trading data, an analysis was performed, which yielded interesting results, showing that insider buying and selling is indeed worth your attention:

“In particular, immediately after the directors’ purchase announcement, we find that shares tend to outperform the market by 0.7%. We also find that stocks outperform by 1.2% between days 1 to 60 and by 2.9% between days 1 and 120. In the case of directors’ sales, our results indicate that the stocks remain directionless over the following 120 days, i.e. stocks outperform by –0.2%. Almost 60% of purchases have a positive return, while just as many directors’ sales subsequently underperform as outperform. Insiders, purchase shares on short-term weakness (the company typically underperforms the market by 1.5% over the prior 30 days) and sell on strength (+3.5% over prior 30 days).”

High-Conviction Insider Buys Post Strong Returns

The most important part of this study talks about using insider trading data to your advantage to beat the market. For that the research paper emphasized that only high-conviction picks of directors and executives should be taken into account. This strategy was back-tested on all directors’ purchases from January 19953 to May 2006 for the constituents of the FTSE 350.

“The buy portfolio yields an average annual return of 23.5% and has an annualised information ratio of 1.15. The strategy produces very persistent returns outperforming the equally weighted universe in 64% of the months. Stocks in the ‘Medium-to-High conviction’ basket also do very well. They generate an average annual return of 20.4% with a volatility of 23.7%.”

Photo by jason briscoe on Unsplash

Methodology

For this article we first used a stock screener to identify the stocks which have seen insider buying activity over the past few weeks. From these stocks we picked 10 stocks with PE ratios less than 20. Why do we pay attention to hedge fund and insider activity? Insider Monkey’s monthly newsletter and portfolio that focuses on activist hedge funds, insider trading and stock picks from hedge fund investor newsletters and conferences returned 199.2% between March 2017 and March 12, 2024 and outperformed the S&P 500 ETFs’ 144.9% gain by more than 54 percentage points.

10. Westlake Chemical Partners LP (NYSE:WLKP)

Number of Hedge Fund Investors: 2

Petrochemicals and polymers company Westlake Chemical Partners LP (NYSE:WLKP) ranks 10th in our list of the undervalued stocks insiders are buying. The stock has a PE ratio of 14.4 as of April 3 and it’s up 2.2% year to date. Andrew Kenner, Senior Vice President, Olefin Material & Corporate Procurement, on March 28 bought 5,000 shares of Westlake Chemical Partners LP (NYSE:WLKP) at $22.23 per share. The total value of this insider purchase was $111,150. Since then the stock price is down about 5%.

9. Kingsway Financial Services Inc. (NYSE:KFS)

Number of Hedge Fund Investors: 2

Kingsway Financial Services Inc. (NYSE:KFS) President and CEO John Taylor Maloney Fitzgerald on April 1 bought 302 shares of Kingsway Financial Services Inc. (NYSE:KFS) at $8.27 per share. Since this transaction the stock is up 9%. Kingsway Financial Services Inc.’s (NYSE:KFS) CFO Kent A Hansen also bought 189 shares of Kingsway Financial Services Inc. (NYSE:KFS) on April 1 at $8.27 per share.

As of the end of the fourth quarter of 2023, two hedge funds had stakes in Kingsway Financial Services Inc. (NYSE:KFS).

Alphyn Capital Management made the following comment about Kingsway Financial Services Inc. (NYSE:KFS) in its Q3 2023 investor letter:

“I added a new position to our portfolio: Kingsway Financial Services Inc. (NYSE:KFS). KFS is a holding company with two primary segments: a warranty business and a search fund accelerator business, which I’ll discuss in more detail below.

KFS has a checkered history, as evidenced by its volatile stock price. The company’s roots lie in the warranty business, which provides extended warranty services covering repair or replacement costs for vehicle service agreements, HVAC systems, standby generators, commercial LED lighting, and refrigerators. This business experienced a rapid growth of 60% per year, accompanied by a soaring stock price. However, lax underwriting standards were exposed during 2006-2008, leading to catastrophic losses and a staggering $1 billion in net operating losses (NOLs). Activist investors intervened and brought in new management. It took two attempts to stabilize the company. The first CEO attempted to build a merchant banking-type business, but instead of creating a mini-Berkshire Hathaway-style conglomerate, he ended up with an opaque, conflict-ridden business with poorly performing investments…” (Click here to read the full text)

8. Summit Financial Group Inc (NASDAQ:SMMF)

Number of Hedge Fund Investors: 4

Summit Financial Group Inc (NASDAQ:SMMF) is one of the undervalued stocks that saw recent insider purchases. On March 19, James P. Geary, a director at Summit Financial Group Inc’s (NASDAQ:SMMF) board, bought 896 shares of Summit Financial Group Inc (NASDAQ:SMMF) at $25.58 per share. Since then the stock has gained about 6.8%.

As of the end of the fourth quarter of 2023, 23 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Summit Financial Group Inc (NASDAQ:SMMF). The biggest stake in Summit Financial Group Inc (NASDAQ:SMMF) is owned by Phil Stone’s Fourthstone LLC which owns a $7.2 million stake in Summit Financial Group Inc (NASDAQ:SMMF).

7. Epsilon Energy Ltd (NASDAQ:EPSN)

Number of Hedge Fund Investors: 6

Texas-based energy company Epsilon Energy Ltd (NASDAQ:EPSN) ranks seventh in our list of the undervalued stocks with insider buying. Epsilon Energy Ltd’s (NASDAQ:EPSN) CEO Jason Stabell on March 26 bought 36,466 shares of Epsilon Energy Ltd (NASDAQ:EPSN) at $5.25. Since then the stock has gained about 4.7%.

6. Mid Penn Bankcorp Inc (NASDAQ:MPB)

Number of Hedge Fund Investors: 6

Financial services company Mid Penn Bankcorp Inc (NASDAQ:MPB) has seen heavy insider buying activity recently as several of its board directors snapped up company shares. Albert J. Evans, a board member at the bank, bought 500 shares of Mid Penn Bankcorp Inc (NASDAQ:MPB) at $20.01 per share on March 28. Another director at Mid Penn Bankcorp Inc’s (NASDAQ:MPB) board, Matthew G. DeSoto bought 400 shares of Mid Penn Bankcorp Inc (NASDAQ:MPB) at $20.01 per share. This transaction also took place on March 28. Since then, Mid Penn Bankcorp Inc (NASDAQ:MPB) shares have declined about 1.4%. Robert Grubic and Brian Hudson, two directors at Mid Penn Bankcorp Inc’s (NASDAQ:MPB) board, on March 28 bought 250 shares of the bank each at $20.01 per share.

Click to continue reading and see 5 Undervalued Stocks with Latest Insider Purchases.

Suggested Articles:

Disclosure. None. 10 Undervalued Stocks with Latest Insider Purchases was initially published on Insider Monkey.

NYSE:KFS Headline NYSE:WLKP NASDAQ:MPB NASDAQ:EPSN Show more...

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

Access to our Detailed Report on our AI, Tariffs, and Nuclear Energy Stock with 100+% potential upside within 12 to 24 months
BONUS REPORT on our #1 AI-Robotics Stock with 10000% upside potential: Our in-depth report dives deep into our #1 AI/robotics stock’s groundbreaking technology and massive growth potential.
One New Issue of Our Premium Readership Newsletter: You will also receive one new issue per month and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Bonus Content: Premium access to members-only fund manager video interviews
Ad-Free Browsing: Enjoy a month of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Price Guarantee: Your renewal rate will always remain the same as long as your subscription is active.
30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

Insider Monkey Ads

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up