Insider Bets Signal Hidden Gems: Small-Cap Stocks to Watch in February 2026
NEW YORK – The U.S. equity markets have kicked off 2026 with robust momentum, with the Dow Jones and S&P 500 posting strong gains. This bullish sentiment persists even amid economic crosscurrents, including delayed federal jobs data following a recent government shutdown. In such a climate, seasoned investors often look beyond the blue chips, scanning for value in the small-cap segment where insider activity can serve as a potent signal.
"When executives buy shares in their own company, especially during periods of broader uncertainty, it's a tangible vote of confidence that warrants attention," said Michael Thorne, a portfolio manager at Horizon Capital Advisors. "It doesn't guarantee success, but it significantly raises the odds that the market may be overlooking a compelling story."
Here’s a closer look at three small-cap stocks that have recently seen notable insider purchases, drawn from a broader screening of 74 such companies. Click here to see the full list.
First Financial (NASDAQ: THFF)
Simply Wall St Value Rating: ★★★★★☆
Market Cap: ~$570 million
P/E Ratio: 10.2x
The regional bank has demonstrated sharp operational improvement. Net interest income soared to $219.9 million in 2025, up from $175 million the prior year, propelling net income to $79.2 million. Despite an increase in charge-offs in Q4 2025, insiders were consistent buyers throughout the year, suggesting they believe the bank's fundamentals are strengthening faster than its stock price reflects.
Brandywine Realty Trust (NYSE: BDN)
Simply Wall St Value Rating: ★★★★★☆
Market Cap: ~$950 million
P/E Ratio: Negative
The office-focused REIT presents a complex picture. CEO Gerard Sweeney invested nearly $300,000 in shares between late 2025 and early 2026, even as the company posted a Q4 2025 net loss of $36.7 million—an improvement year-over-year but a loss nonetheless. The firm continues its dividend payout ($0.32 annually) while navigating a challenging property market and acknowledging that 2026 will likely bring further losses. The insider buy is a bold bet on a long-term turnaround.
Saul Centers (NYSE: BFS)
Simply Wall St Value Rating: ★★★★☆☆
Market Cap: ~$1.23 billion
P/E Ratio: 29.4x
This shopping center REIT faces margin pressure, with profit margins contracting to 9.9% from 16.7%. However, analysts project annual earnings growth near 19%. Insiders have maintained the dividend steadfastly ($0.59 per share), signaling commitment to shareholders even as the company manages higher debt and a mixed earnings picture of rising sales but falling net income.
Investor Perspectives:
"I find the First Financial story compelling. Insiders buying into a profitable, growing regional bank at a 10x P/E is classic value investing. It's a calculated bet on Main Street finance," said David Chen, a veteran value investor based in Chicago.
"Brandywine is a head-scratcher. Buying into a money-losing office REIT with uncovered interest payments in this environment isn't confidence—it's hubris. That dividend feels like a ticking time bomb," argued Sarah Fitzpatrick, a financial analyst known for her bearish stance on commercial real estate.
"The consistent dividends from Saul Centers provide a floor. The insider commitment there, coupled with projected growth, suggests they're managing through a cycle. It's for investors with patience," noted Arjun Mehta, a fund manager specializing in REITs.
This article is for informational purposes only. It is not a recommendation to buy or sell any security. Analysis is based on historical data and analyst projections using an unbiased methodology. It does not consider individual financial circumstances. Simply Wall St holds no position in mentioned securities.