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I am a little late getting through Barron's, the weekly magazine that is well-followed in the industry, this week. I finally got to the top 20 list of insider buys this morning and noticed a couple of small cap stocks on the list, including one I have owned for about three months now.

In addition to the recent buying, both companies have seen insiders buy over $1mm in new stock in recent months. For investors that closely watch insider buying as a positive catalyst, both stocks are worth a look at these levels.

Digirad (NASDAQ:DRAD) is an imaging solution provider to hospitals and family practices. An insider bought almost $150K worth of new stock in several different transactions in October. This continues a recent trend as insiders have loaded up on more than 400,000 shares of the company in recent months.

Digirad has a market capitalization of under $50 million and over 40% of that is net cash. The company has a stock repurchase program in effect that should retire a total of ~20% of its float at its current stock price which is just north of $2.50 a share. Digirad is also in the process of relocating from California to Atlanta which should reduce overall operating expenses by more than 20%.

The stock is selling at less than 1x annual revenues which is cheap in this space. The company is posting small losses but is basically breaking even on an operating cash flow basis. One final hidden asset is that the company has some $90 million of net tax loss carry forwards to offset profits in the future.

Bridge Bancorp (NASDAQ:BDGE) is a small Northeast based regional bank with a market capitalization of under $300mm. Bridge Bancorp provides customers with banking services primarily in Suffolk county and eastern Long Island, New York. Insiders have been busy over the last few weeks gobbling up more than $1mm in new shares in approximately a dozen different transactions.

One of the most attractive features of this bank stock is the 4% dividend yield. The company also recently bought a small bank in the region. This transaction should close in the first quarter of 2014 and management has stated the acquisition should be accretive to earnings to the tune of 6% to 8%.

BDGE sells for ~$23 a share and does not have a large analyst following. Only three analysts currently have price targets on the firm and they are in a tight range of $25 to $26 a share. With the recent acquisition, the consensus is for the company to grow revenues almost 20% in FY2014 and the bank holding company is solidly profitable and should benefit from a continuing recovery in the housing market.

Source: 2 Small Caps Insiders Are Gobbling Up