3 Small Caps That Insiders Are Buying

With the FOMC on track to reduce rates by another 75 basis points before mid-year 2026, the focus on smaller and small-cap stocks, including emerging technology, is intensifying. The idea is that rate reductions and easing economic headwinds will allow them to reinvigorate growth, expand margins, and build shareholder value.

This article examines three small-caps with insider support and whether or not they may be good buys for investors. 

Thryv Holdings Market Support is Thriving 

Thryv Holdings (NASDAQ: THRY) is a cloud-based SaaS business services company focused on small and medium-sized operations. Its CRM-focused suite of tools enables businesses to enhance their digital presence, manage customer information, and automate processes to reduce costs.

Insiders buying in Q3 include two directors and the CEO, notable because these are not their first purchases in 2025, and the history of activity reveals insiders tend only to buy this stock.

They own nearly 10% of it, including major shareholders, and show clear support for the business and faith in its long-term outlook. 

The analysts’ data reveals tepid coverage with only five tracked. However, they rate the stock as a Moderate Buy and see it advancing by 30% at the low end of the target range.

The institutions are more bullish, owning more than 96% of the stock, including large shareholders, and they have bought on balance robustly each quarter this year.

Support from that vector is solid with owners, including public and private money, retirement funds, pension plans, and mutual fund managers. 

The risks for Thryv investors include short interest and the outlook for revenue and earnings. Short interest is elevated in 2025, running near 15% as of late August, because the revenue growth forecasts are negative.

The company is expected to contract this year, next year, and next year as its legacy business and the newer is phased out, and a SaaS business grows.

Applied Optoelectronics Has Datacenter Demand to Drive It

Applied Optoelectronics (NASDAQ: AAOI) manufactures fiber-optic networking equipment for data centers, cable, telecom, and internet operators. Its insiders are buying on balance in 2025, but sales offset purchases to a degree. The critical takeaway is that the balance of activity is bullish, insiders own nearly 5% of the stock, and the buyers include noteworthy insiders such as the CEO and several directors.

The CEO, in particular, bought shares more than once in Q3 and this year, signalling a high degree of confidence. Conversely, sellers include lower-tier executives and align with share-based compensation. 

Analysts and institutional trends align with a rising AAOI share price. The six analysts tracked by InsiderTrades rate the stock as a Moderate Buy, view it as fairly valued near $28, and the trends are positive.

Coverage and the consensus price target are increasing in 2025, leading this market toward the $34 range and a 25% upside that may be reached by year’s end. The next visible catalyst is the November earnings release, in which analysts, who have set a low bar, expect revenue growth to be sustained at a hyper pace of nearly 100%. 

NetSol Technologies Scores Long-Term, Multi-Million Dollar Contract

NetSol (NASDAQ: NTWK) makes and markets software solutions for the automobile finance market. Its business is tiny in 2025 but expected to explode over the coming quarters due to a recently signed contract. It is worth multiple millions of dollars over the next five years, affirming the company’s utility, and will likely lead to additional contracts in upcoming quarters.

Regarding the insiders, President and CEO Najeeb Ghaury made three purchases in Q3, bringing the insider holders to about 13%. His purchases sparked activity, setting a quarterly record for the company. 

Institutional activity is also bullish, but the tailwind it provides is minimal. The group owns only 16% of the stock; no analyst coverage is on record. However, that may change quickly once revenue is posted and an outlook for profitability can be established. That could occur in Q4, when the subsequent earnings report is released. 

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The article "3 Small Caps That Insiders Are Buying " first appeared on MarketBeat.