Important Points
- The Great Rotation continues, with money flowing into small stocks and the Russell 2000’s leading market development.
- The buy-in highlights opportunities in AI-related terms.
- Low stock prices offer opportunity for investors, but risks remain.
The “Great Rotation” has investors cutting profits from leading technology stocks and putting money elsewhere, including small-cap plays. The Russell 2000 led the market’s comeback in Q2, up 15% from March lows, and is likely to continue rising. The stocks on this list are poised to benefit from these trends, where insiders and institutional income highlight opportunities. What they all have in common, despite their small size, is AI. AI improves vision; the question now is whether these companies can follow through and deliver results.
CS Disco: Long Term of Law Gets an AI Boost
CS Disco (NYSE: LAW) is an AI-powered cloud platform for legal assistance. It helps lawyers and offices with everything from litigation through case management, automating many processes along the way. The company is generating revenue and growing. The latest results reveal an acceleration, which may continue in the coming quarters. The company is not yet profitable, but has a clear path, with adjusted EPS expected in early fiscal 2028.
Insiders, including the CEO and several directors, are buying the stock, which is important because they already hold a double-digit stake. Their work is enhanced by institutions, which own 58% of this small name and have been accumulating shares. InsiderTrades data shows them buying at a strong pace, accumulating five consecutive quarters at a pace of about $5-to-$1, providing strong support for the stock’s value.
Analysts rate the stock as a Hold, but the price target and bias reveal a more bullish stance. The bias of the four analysts followed is 50% in favor of Buy, with consensus at $8, an 85% upside from current prices. The recent action of the stock price is consistent with the activity of the institution and the position of bullish analysts, which confirms the support in the long-term decline and the ability to support the support, if it does not improve from the price levels in late April.
Catalysts for this stock include increasing digital consumption and the penetration of AI. Cecilia’s company model is distinctive, providing eDiscovery support and automated services.
Kaltura Makes AI Pivot: The Market Says Whoa
Kaltura (NASDAQ: KLTR) is a video and media specialist in the midst of a major transformation. The company is heavily dependent on AI, aiming to establish itself as an AI-enabled provider of employee/customer experience. Storms in 2026 include hot results, contract revenue, and hot guidance. The company may make money, but profitability has just been reached, and current forecasts are not optimistic. That said, insiders own a whopping 13% of the company and senior executives, including the CEO and senior vice president, have bought shares this year.
Analysts are also optimistic about the stock’s turnaround. InsiderTrades only tracks two, but a Hold rating comes with an expectation of more than 100% upside in the stock price. The bad news is that institutions, which own about 30% of the float, distributed shares in Q1. The combination of weak results and intense competition was more than enough to derail plans for AI-driven transformation.
Catalysts this year include acquisitions and a heavy reliance on agent AI. The acquisition of PathFactory enhances its agent capabilities, focusing on automated and AI-assisted content and knowledge creation. The company aims to move businesses away from static landing pages to active experiences.
Thryv Grows, Profits in 2206: Institutions Buy
Thryv (NASDAQ: THRY) is a cloud-based digital marketing tool that provides services to businesses across all verticals. Its ad-driven business is expected to contract in 2026, but profits will improve significantly. Insiders buying this stock include the CEO, CFO, and two directors, who have been buying it consistently for years. Insiders own about 10% of the shares and show great confidence in the future.
Analysts rate Thryv as a Hold, but, like CS Disco, internal data reveals a more bullish stance. There are seven analysts covering this stock, which is enough to put some confidence in the estimate, and the bias is moderate, but the target price suggests a rise of 180% is possible. Institutions are also strong in this term, more so than analysts, who own almost all the remaining shares and are buying aggressively at the beginning of 2026.
Price action on this stock is iffy. The market may have bottomed in March, but the downtrend is still in play. Key resistance is at the 150-day moving average and could produce a sharp decline if reached.
Key catalysts include the rollout of its AI-enabled platform, announced in March, and a push to improve customer experience. Rather than relying on die-hard customers, the company is in a go-to-market mode, actively marketing its new tools.
Companies in this article:
| Company | Current Price | Price Changes | Dividend Yield | The P/E ratio | Consensus ratio | Consensus Price Target |
|---|---|---|---|---|---|---|
| Kaltura (KLTR) | $1.22 | -5.1% | N/A | -15.19 | Hold on | $3.00 |
| Thryv (THRY) | $3.14 | -7.8% | N/A | N/A | Hold on | $9.50 |
| CS Disco (LEGAL) | $4.00 | -9.7% | N/A | -5.56 | Hold on | $8.00 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
- Professional Background: Thomas Hughes is the Managing Partner of Passive Market Intelligence LLC, a market research platform he founded in 2023 with the motto: “We watch the market so you don’t.” He has worked as a blogger, stock market analyst, and independent analyst since 2010 and has been involved in trading and investing since 2005.
- Confirmation: He has an Associate of Arts in Culinary Technology-training that has enhanced his discipline, attention to detail, and ability to anticipate results, all of which continue in his work as a market analyst.
- Financial Experience: Thomas has been writing about finance and investing since 2011, when he discovered it could be more than a personal passion—it could be a career. He has been a contributing writer for InsiderTrades.com since 2019.
- Writing Focus: He specializes in the S&P 500, small-cap stocks, high-yield diversification strategies, consumer staples, retail, technology, oil, and equities. His analysis combines chart-based technical setups with key fundamentals, helping readers identify potential trends.
- How to Invest: Thomas takes a hybrid approach that combines technical analysis with in-depth fundamental research. He often writes about macroeconomic shifts, wage trends, and sentiment-based trading signals.
- Motivation: Thomas became interested in stocks after attending a seminar on buying and selling your own stocks. That experience opened his eyes to the power of the market and sparked a lifelong interest in investing.
- Fun fact: Thomas picked up a model railroad by accident a few years ago—and now he can’t stop using the railroad.
- Areas of Expertise: Technical and fundamental analysis, S&P 500, retail and consumer sectors, equities, market trends
Education
Associate of Arts in Culinary Technology
