10 financial small-cap stocks cheaper than $35 - hedge fund picks

Freedom Broker, at Oninvest's request, analyzed which small-cap stocks from the finance sector turned out to be the most popular among hedge funds at the end of the fourth quarter of 2025. The sample included ten companies whose capitalization in the reporting period was less than $6 bln. Their shares cost less than $35.

74 hedge funds owned shares of the company's stock

Hanmi Financial Corporation is an American bank holding company. It has grown from a "niche" bank for the Korean diaspora into a full-fledged regional bank - Hanmi Bank, specializing in servicing small and medium-sized businesses. In 2025, the bank's net income increased by 22% to $76.1 million. Net interest income increased by 16.5% compared to 2024 and amounted to $236.2 million.

Since the beginning of the year, the company's securities have added about 4%. Two Wall Street analysts recommend to buy the company's securities and two - to hold. With an average target of $31.13, the growth potential is about 11% of the closing price on April 17.

Sixty-nine hedge funds owned shares of the company's stock

Green Dot operates without bank branches and offers traditional banking services. In 2025, the bank's revenue grew 21% year-over-year to $2.1 billion. Loss increased by 270% year-on-year to $98.9 mln. The reasons include restructuring, payments to laid-off employees, and a recorded loss on the sale of financial assets.

Since the beginning of the year, the stock has lost about 3.2%. One analyst recommends to buy the company's securities, two more advise to hold. The average target is $16.13, which means the growth potential is about 30%.

Sixty-eight hedge funds owned shares of the company's stock

Capitol Federal Financial operates a network of savings banks under the Capitol Federal Savings Bank brand. It specializes in mortgage lending and retail banking. In the first quarter of fiscal 2026, Capitol Federal Financial's net income increased 31.8% year-over-year to $20.3 million. Net interest income increased 21.5% to $51.3 million.

Since the beginning of the year, Capitol Federal Financial securities are up 13.2%. Two analysts advise to hold the company's shares. The average target price of $7.75 corresponds to the current share price.

Sixty-eight hedge funds owned shares of the company's stock

Regional bank in the United States, serving businesses and individuals in the Midwest. It has been in operation since 1873. In September 2025, the bank said it sold approximately $1.7 billion in debt securities, recording a pre-tax loss of about $299 million. The transaction was part of a major balance sheet restructuring aimed at reducing risk, making funding cheaper and improving future returns on assets. Net income for the fourth quarter of 2025 was $26.9 million compared to a loss of $10.9 million in the fourth quarter of 2024. Net interest income grew 19.5% year-on-year to $63.5 million.

The bank's shares have added about 6.2% since the beginning of the year. Four analysts recommend to buy the company's securities and one - to hold. The average target is $20.8 and the growth potential is 15.5%.

Sixty-seven hedge funds owned shares of the company's stock

Accel Entertainment is an operator of terminals for gambling outside casinos: in American bars, restaurants and gas stations. The company's 2025 revenue increased 8.1% year-over-year to $1.3 billion, with net income soaring 45.3% to $51.3 million. Accel CEO Andy Rubenstein called the revenue "record-breaking" in a press release. He emphasized that the company not only grew to record levels, but was able to maintain revenue stability by efficiently allocating capital. At the end of 2025, Accel was present in more than 4,500 locations and owned nearly 28,000 gaming terminals.

The company's securities have added more than 5% since the beginning of the year. Six analysts give a recommendation to buy the company's securities and one gives a recommendation to hold. The average target price is $15.7 - the securities may grow by 30.8%.

Sixty-seven hedge funds owned shares of the company's stock

Bank Holding Company, primarily operates through its subsidiary Heritage Bank of Commerce, providing commercial and personal banking services in California. Last December, it announced a merger with Citizens Business Bank: the deal will be all-stock and is valued at about $811 million, or $13 per Heritage share. The merger, expected to be completed in the second quarter, will create one of the leading banks for business in California, with assets of about $22 billion, a network of more than 75 offices and strong positions in the state's key economic centers.

Heritage Commerce's total revenue for 2025 grew 15% year-over-year to $197.5 million, with net income up 18% to $47.8 million.

The company's shares have added 12% since the beginning of the year. According to MarketWatch, only one analyst recommends buying the company's securities, while another recommends holding. The average target is $14.5, up 7.8% from current levels.

Sixty-six hedge funds owned shares of the company's stock

Kearny Financial is the holding company for Kearny Bank, a small regional bank operating primarily in New Jersey and near New York City. For the second quarter of fiscal 2026 (ended December 31, 2025), the company reported a slight decline in net income, down 1% to $9.4 million for the quarter. Meanwhile, net interest margin rose to 2.14% (up 32 bps year-over-year). Net income before income tax increased by 3.9% to $12.3 mln.

Shares of Kearny Financial are up 9.6% YTD. One analyst recommends holding the company's stock, MarketWatch shows. The average target price of $8.5 implies a 4.7% upside from the stock's closing price on April 27.

Sixty-five hedge funds owned shares of the company's stock

The bank holding company, founded more than 160 years ago, operates in Michigan and provides retail and commercial banking services. For 2025, the company's earnings rose 2.5% from 2024 to $68.5 million. Net interest income rose 8.3% to $180 million. Net interest margin increased to 3.56% from 3.38% a year earlier.

Independent Bank Corporation securities have gained almost 7% since the beginning of the year. The bank has five ratings from Wall Street analysts and all of them are "Hold". The average target is $37, which implies a potential upside of 6.3%.

Sixty-five hedge funds owned shares of the company's stock

The group's principal business is real estate insurance in U.S. states, especially in areas with a high risk of natural disasters (Florida, California, etc.).

The company's net income rose 217.8% to $195.6 million in 2025. Revenue added 3.71% to $847.33 million. The board decided to extend the suspension of quarterly dividends to shareholders to focus on strategic growth, but will continue to buy back shares: the new buyback program provides for buybacks of up to $25 million through the end of 2026.

The insurance group's shares have fallen 7% since the beginning of the year. Seeking Alpha named Heritage Insurance among the small-cap stocks that could benefit from the next phase of artificial intelligence technology adoption. Two analysts advise buying the company's shares and one advises holding. The stock has an average target price of $36.5 with a potential upside of about 34%.

Sixty-three hedge funds owned shares of the company's stock

Universal Insurance is an insurance holding company, mainly operating in the segment of home insurance in regions with a high risk of hurricanes (Florida). Revenue for 2025 grew 5.5% year-over-year to $1.6 billion, with net income more than tripling to $182.9 million. Universal Insurance CEO Stephen Joe Donahoe called the fourth quarter of 2025 "outstanding." He noted the positive effect of legislative reforms in Florida: new regulations have tightened claim rules and allowed insurers to reduce litigation costs.

The insurance group's stock is up 5.3% since the beginning of the year. One Wall Street analyst recommends buying the company's securities and one recommends holding. The average target is $40, which gives a potential upside of about 12.4%.