Latest news with #insideractivity
Yahoo
23-05-2025
- Business
- Yahoo
Exploring May 2025's Undervalued Small Caps With Insider Activity
Over the last 7 days, the United States market has experienced a slight decline of 1.4%, yet it has shown resilience with an 11% rise over the past year, and earnings are anticipated to grow by 14% annually in the coming years. In this context, identifying stocks that exhibit strong insider activity can be crucial for investors seeking opportunities amidst current market conditions. Name PE PS Discount to Fair Value Value Rating PCB Bancorp 10.1x 2.9x 47.50% ★★★★★☆ S&T Bancorp 10.5x 3.6x 44.44% ★★★★☆☆ Thryv Holdings NA 0.8x 26.03% ★★★★☆☆ Niagen Bioscience 56.9x 7.4x 25.11% ★★★☆☆☆ Columbus McKinnon 50.6x 0.5x 34.92% ★★★☆☆☆ MVB Financial 12.9x 1.7x 39.64% ★★★☆☆☆ Delek US Holdings NA 0.1x -59.76% ★★★☆☆☆ Tandem Diabetes Care NA 1.4x -2728.75% ★★★☆☆☆ Montrose Environmental Group NA 0.9x 6.87% ★★★☆☆☆ Titan Machinery NA 0.2x -422.82% ★★★☆☆☆ Click here to see the full list of 107 stocks from our Undervalued US Small Caps With Insider Buying screener. Let's uncover some gems from our specialized screener. Simply Wall St Value Rating: ★★★★☆☆ Overview: Domo is a software company that specializes in cloud-based business intelligence and data visualization solutions, with a market cap of approximately $0.28 billion. Operations: Domo generates revenue primarily through its operations, with a significant portion allocated to sales and marketing expenses, which reached $151.51 million as of January 2025. The company has experienced fluctuations in its gross profit margin, which was 74.46% at the end of April 2025. Operating expenses are another major cost component, amounting to $289.10 million in the same period. PE: -5.9x Domo's recent earnings report for Q1 2025 showed steady revenue at US$80.11 million, with a reduced net loss of US$18.05 million compared to the previous year. The company has been actively expanding its partnerships, notably with Weather Trends International and Human Capital Vue, leveraging its AI and data products to enhance client operations across various sectors. Insider confidence is evident as executives have shown interest in share purchases over recent months. While Domo remains unprofitable and reliant on external borrowing, its strategic collaborations suggest potential growth avenues despite current volatility in share price. Click to explore a detailed breakdown of our findings in Domo's valuation report. Examine Domo's past performance report to understand how it has performed in the past. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Omnicell is a healthcare technology company specializing in medication management solutions and automation systems, with a market capitalization of approximately $2.42 billion. Operations: Omnicell's revenue is primarily driven by its healthcare software segment, with a recent quarterly revenue of $1.14 billion. The gross profit margin has shown fluctuations, reaching 43.24% in the latest period. Operating expenses have been significant, with research and development costs consistently contributing to these figures. The company experienced varying net income margins over time, recently recording a positive margin of 1.87%. PE: 63.8x Omnicell, a company focusing on medication management solutions, is navigating financial challenges with an anticipated earnings decline of 41.1% annually over the next three years. Despite this, insider confidence is evident as Randall Lipps recently purchased 10,561 shares worth approximately US$350K. The company's new share repurchase program aims to buy back up to US$75 million in stock without a set expiration date. Recent product innovations like MedTrack and MedVision aim to enhance operational efficiency and patient care through advanced RFID technology and inventory management tools. Delve into the full analysis valuation report here for a deeper understanding of Omnicell. Evaluate Omnicell's historical performance by accessing our past performance report. Simply Wall St Value Rating: ★★★☆☆☆ Overview: LSB Industries operates in the chemical manufacturing sector, with a focus on producing and selling chemical products, and has a market capitalization of approximately $1.46 billion. Operations: LSB Industries primarily generates revenue from its chemical manufacturing operations. Over time, the company's gross profit margin has shown significant fluctuation, with a notable high of 41.13% in Q2 2022 and a low of -9.93% in Q4 2016. Operating expenses have generally remained consistent, with general and administrative expenses being a significant component. The net income margin has varied widely, reflecting both profits and losses across different periods. PE: -19.8x LSB Industries, a small company in the U.S., has shown insider confidence with recent share purchases. Despite reporting a net loss of US$1.64 million for Q1 2025, down from a net income of US$5.62 million the previous year, earnings are projected to grow by 50.67% annually. The company's reliance on external borrowing presents higher risk but aligns with their focus on energy transition and decarbonization efforts, highlighted at an upcoming New York conference on May 14, 2025. Click here to discover the nuances of LSB Industries with our detailed analytical valuation report. Assess LSB Industries' past performance with our detailed historical performance reports. Discover the full array of 107 Undervalued US Small Caps With Insider Buying right here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent. 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. Companies discussed in this article include NasdaqGM:DOMO NasdaqGS:OMCL and NYSE:LXU. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error while retrieving data Sign in to access your portfolio Error while retrieving data
Forbes
20-05-2025
- Business
- Forbes
Why 'Sell In May' Is Costing You Alpha—And What To Do Instead
Don't Sell in May—Rotate and Win While Others Run getty 'Sell in May and go away.' It's catchy. It rhymes. And it's wrong. Every year, investors consistently repeat this worn-out mantra, as though calendar-based investing still holds a place in the market. But markets don't respond to folklore; they respond to positioning, liquidity, and catalysts. Smart investors don't retreat; they rotate. This strategy is particularly effective when the market appears dull. Dullness conceals value, while catalysts incentivize discipline. At The Edge, we don't trade seasonality; we track triggers. Spinoffs, insider activity, and management shifts don't care what month it is. And in quieter markets, they often go unnoticed... until they don't. Such behavior isn't about timing the market. It's about sharpening focus while others lose theirs. That's how real edge is built. It may be one of the most overused phrases in market folklore, but its staying power says more about investor psychology than performance. Originating in 1930s London, the strategy leans on seasonal averages showing the Dow historically performed better from November to April. Yet those averages mask the nuance. The phrase ignores the real forces that drive markets: liquidity shifts, monetary policy, valuation resets, and shifting narratives. The idea that investors can rely on a calendar cliché is dangerously simplistic. Markets don't move because it's May; they move because positioning, catalysts, and context align. The phrase may rhyme, but it won't build alpha. Slogans don't earn you money. You receive compensation for recognizing their falsehoods. The mantra assumes weakness where there may be none. Yes, May–October have underperformed on average, but averages mask what matters. Often, what looks like a 'sell in May' underperformance is simply lower volatility, not worse returns. And in the post-2009 QE era, the historical basis for the event has weakened dramatically. Since 2020, some of the strongest rallies have occurred during this so-called off-season. The truth is, 'sell in May' thinking ignores how much market structure has changed. In today's environment, dominated by AI-driven narratives, rate path uncertainty, and geopolitical crosswinds, the calendar has never been less predictive. Smart money isn't rushing to sell in May. It's rotating, repricing, and positioning for what's next. Here, some of our best catalyst-driven returns came precisely when the herd leaned on seasonal complacency. 'Sell in May' might be the mantra for the passive crowd, but seasoned investors know better. When others retreat, smart capital rotates, not out, but into opportunities with identifiable catalysts. These include upcoming spinoffs that prompt forced index rebalancing, insider buying that signals internal conviction, activist campaigns pushing for value unlocks, and overlooked restructurings or leadership changes. None of these are seasonal; they're structural. 'Sell in May' thinking misses the mark entirely. At my company, we track these moments obsessively. While the headlines slow in May, the filings don't. One of our most profitable calls emerged during a quiet summer: a spinoff buried in fatigue, which we captured for a 40% return in just two months. That's the power of conviction over the calendar. 'Sell in May' might tell you to wait it out, but our results show the edge comes from leaning in when others step back. You don't need movement in the S&P to make money. You need movement in business. The phrase endures because it's simple, and simplicity is comforting. But markets are anything but simple. This saying survives not because it works, but because it offers a shortcut in a world where shortcuts rarely pay. Investors cling to it like a seasonal ritual, hoping an old rhyme will shield them from complexity. But the truth? Calendar-based exits aren't a sign of discipline. They're a sign of impatience. Here, we've spent over two decades ignoring market folklore like 'sell in May' and instead tracking real business catalysts, spinoffs, restructurings, insider buying, and corporate change. These drivers of value don't care what month it is. They unfold in filings, not in headlines. Relying on seasonal maxims to protect capital isn't risk management; it's superstition disguised as strategy. If you are committed to achieving returns, it would be beneficial to prioritize conviction over the calendar. I tighten my focus. While others switch off, I screen for underfollowed spinoffs, track insider buying during thin-volume weeks, and hunt for structural dislocations the market isn't pricing in. May isn't a warning; it's a filter. It strips out the noise and reveals where the edge lives. Last summer, we flagged a forgotten industrial spinoff—trading below net cash, underowned, and ignored. A minor operational shift flipped the story. We captured a 40% return in under 90 days. That's what happens when you act on catalysts, not calendars. 'Sell in May' assumes nothing worthwhile happens in the quiet. But here, we've built our process around quiet moments, where filings still flow, but headlines don't. This process isn't about market timing. It's about business timing. If May makes you nervous, you're watching the wrong signals. But if you're tracking what the business is doing, May isn't a risk. May presents an opportunity. 'Sell in May' might sell headlines, but it rarely builds portfolios. Markets today aren't seasonal; they're situational. The true advantage is in identifying business changes ahead of the crowd, rather than waiting for a calendar queue. At The Edge, we don't guess; we follow the process. While others chase noise or switch off in May, we go deeper: into filings, restructurings, and overlooked spinoffs that quietly reprise risk and reward. Some of our best returns came when the market looked dull. If you feel that May is quiet, that's a positive sign—it indicates that opportunity is knocking, albeit softly. If you're still selling in May, you're not managing risk; you're avoiding strategy. Let's fix that. Let's talk.
