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If you're looking for interesting small-cap ideas, this list might offer a good starting point.

We started with a universe of about 200 small-cap stocks that have had significant insider buying over the last six months. To narrow down the list, we identified those companies trading at the deepest discounts to the average analyst target price, which we use as a proxy for fair value.

Yes, there are many limitations to using target prices as estimates for fair value, but the goal here is to give you a starting point for your own analysis.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


List sorted by upside to target price.

1. Exar Corp. (NYSE:EXAR)
: Semiconductor Industry. Market cap of $283.08M. Over the last six months, insiders have been net buyers of 2,179,964 shares, which represents about 5.84% of the company's float of 37.31M shares. Current price at $6.27 vs. average analyst target price at $8.7, implies a potential upside of 38.76%.

2. Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR)
: Drug Manufacturer. Market cap of $334.48M. Over the last six months, insiders have been net buyers of 695,149 shares, which represents about 9.83% of the company's float of 7.07M shares. Current price at $18.63 vs. average analyst target price at $25.6, implies a potential upside of 37.41%.

3. GeoEye, Inc. (NASDAQ:GEOY): Information & Delivery Services Industry. Market cap of $735.38M. Over the last six months, insiders have been net buyers of 810,000 shares, which represents about 4.07% of the company's float of 19.90M shares. Current price at $33.41 vs. average analyst target price at $45.88, implies a potential upside of 37.32%.

4. GTX Inc. (NASDAQ:GTXI): Biotechnology Industry. Market cap of $304.63M. Over the last six months, insiders have been net buyers of 6,978,510 shares, which represents about 63.5% of the company's float of 10.99M shares. Current price at $5.84 vs. average analyst target price at $8, implies a potential upside of 36.99%.

5. Tower International, Inc. (NYSE:TOWR): Metal Fabrication Industry. Market cap of $330.05M. Over the last six months, insiders have been net buyers of 74,000 shares, which represents about 1.13% of the company's float of 6.56M shares. Current price at $16.89 vs. average analyst target price at $23, implies a potential upside of 36.18%.

6. Ardea Biosciences, Inc. (NASDAQ:RDEA): Drug Manufacturer. Market cap of $666.48M. Over the last six months, insiders have been net buyers of 495,549 shares, which represents about 2.32% of the company's float of 21.33M shares. Current price at $24.96 vs. average analyst target price at $33.82, implies a potential upside of 35.5%.

7. Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH): Drug Manufacturer. Market cap of $268.05M. Over the last six months, insiders have been net buyers of 279,794 shares, which represents about 1.57% of the company's float of 17.81M shares. Current price at $7.81 vs. average analyst target price at $10.5, implies a potential upside of 34.44%.

8. Corcept Therapeutics Inc. (NASDAQ:CORT): Biotechnology Industry. Market cap of $414.81M. Over the last six months, insiders have been net buyers of 556,900 shares, which represents about 1.11% of the company's float of 50.36M shares. Current price at $4.86 vs. average analyst target price at $6.5, implies a potential upside of 33.74%.

9. ZIOPHARM Oncology, Inc. (NASDAQ:ZIOP): Biotechnology Industry. Market cap of $472.34M. Over the last six months, insiders have been net buyers of 4,336,240 shares, which represents about 8.21% of the company's float of 52.80M shares. Current price at $6.94 vs. average analyst target price at $9.17, implies a potential upside of 32.13%.

10. Skilled Healthcare Group, Inc. (NYSE:SKH): Long-Term Care Facilities Industry. Market cap of $431.37M. Over the last six months, insiders have been net buyers of 246,100 shares, which represents about 1.27% of the company's float of 19.41M shares. Current price at $11.25 vs. average analyst target price at $14.79, implies a potential upside of 31.47%.

11. Primo Water Corporation (NASDAQ:PRMW): Soft Drinks Industry. Market cap of $282.01M. Over the last six months, insiders have been net buyers of 190,000 shares, which represents about 1.45% of the company's float of 13.09M shares. Current price at $14 vs. average analyst target price at $18.33, implies a potential upside of 30.93%.

12. Flagstar Bancorp Inc. (NYSE:FBC): Savings & Loans Industry. Market cap of $786.51M. Over the last six months, insiders have been net buyers of 72,793,301 shares, which represents about 37.26% of the company's float of 195.35M shares. Current price at $1.43 vs. average analyst target price at $1.85, implies a potential upside of 29.37%.

13. Pacific Sunwear of California Inc. (NASDAQ:PSUN): Apparel Stores Industry. Market cap of $211.31M. Over the last six months, insiders have been net buyers of 10,327,071 shares, which represents about 29.19% of the company's float of 35.38M shares. Current price at $3.09 vs. average analyst target price at $3.96, implies a potential upside of 28.16%.

14. Synta Pharmaceuticals Corp. (NASDAQ:SNTA): Diagnostic Substances Industry. Market cap of $231.13M. Over the last six months, insiders have been net buyers of 1,545,920 shares, which represents about 5.98% of the company's float of 25.85M shares. Current price at $5.48 vs. average analyst target price at $7, implies a potential upside of 27.74%.

15. MoSys, Inc. (NASDAQ:MOSY): Semiconductor Industry. Market cap of $228.37M. Over the last six months, insiders have been net buyers of 505,000 shares, which represents about 1.77% of the company's float of 28.56M shares. Current price at $5.97 vs. average analyst target price at $7.5, implies a potential upside of 25.63%.

16. Town Sports International Holdings Inc. (NASDAQ:CLUB):
Sporting Activities Industry. Market cap of $151.55M. Over the last six months, insiders have been net buyers of 170,967 shares, which represents about 1.21% of the company's float of 14.10M shares. Current price at $6.67 vs. average analyst target price at $8.33, implies a potential upside of 24.89%.

17. Vantage Drilling Company (NYSEMKT:VTG): Oil & Gas Drilling & Exploration Industry. Market cap of $580.28M. Over the last six months, insiders have been net buyers of 5,350,210 shares, which represents about 3.17% of the company's float of 168.85M shares. Current price at $2.01 vs. average analyst target price at $2.49, implies a potential upside of 23.88%.

18. Saul Centers Inc. (NYSE:BFS): REIT. Market cap of $746.1M. Over the last six months, insiders have been net buyers of 196,636 shares, which represents about 1.19% of the company's float of 16.52M shares. Current price at $39.65 vs. average analyst target price at $48, implies a potential upside of 21.06%.

19. Lincoln Educational Services Corporation (NASDAQ:LINC)
: Education & Training Services Industry. Market cap of $330.35M. Over the last six months, insiders have been net buyers of 291,384 shares, which represents about 1.38% of the company's float of 21.18M shares. Current price at $14.41 vs. average analyst target price at $17.43, implies a potential upside of 20.96%.

20. Echo Global Logistics, Inc. (NASDAQ:ECHO):
Trucking Industry. Market cap of $329.74M. Over the last six months, insiders have been net buyers of 202,262 shares, which represents about 1.64% of the company's float of 12.37M shares. Current price at $14.93 vs. average analyst target price at $17.67, implies a potential upside of 18.35%.

*Insider trading data sourced from Yahoo Finance (sourced on Friday, May 24), target price data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: The 20 Most Undervalued Small-Cap Stocks With Insider Buying