In this article, we will take a look at high P/E stocks that Insiders are buying.
Insider buying represents one of the most reliable signals that investors and analysts use to gauge the business outlook of the company. The reason is that most insiders possess confidential information on the business and industry and can thus often anticipate periods of overvaluation and undervaluation of their own stock, and act accordingly. Empirical research strongly supports this hypothesis; for instance, Lakonishok and Lee (2001) concluded that insider purchases are associated with significant positive abnormal returns, particularly in smaller firms. Likewise, a recent Swedish study found that insider trading from higher executive titles, such as the CEO title, has more predictive power, suggesting that the highest-ranked officers have the most accurate information on the valuation of the company’s stock.
It is especially important to follow insider buying signals during periods of high uncertainty and volatility, such as the current market we are in. The Trump Tariff Turmoil and recessionary threats have induced a lot of confusion among investors, who are often trapped between the choice of exiting a stock or buying more of it. In this context, we believe that looking at stocks that insiders are buying can provide the final layer of reassurance that the business outlook is satisfactory and the stock is undervalued (i.e., no need to sell; possibly buy more). We also believe that insider buying signals among expensive stocks, such as those with a high P/E ratio, are even stronger signals of high conviction from insiders – the fact that insiders buy an already expensive stock suggests a high likelihood that the stock will go even higher.
READ ALSO: 10 Small–Cap Stocks Insiders Are Buying Recently
We will now do an overview of the recent market developments to make sure that the landscape is favorable enough to consider investing. A notable recent development is that the odds of a recession, as predicted by Polymarket and the reputable Yardeni Research, have marginally declined over the past week. The odds of the US economy falling into recession are now estimated at 52% by the broad market, down from the peak of 66% at the beginning of the month, while Yardeni has recently lowered their prediction to only 35%. These developments haven’t yet been reflected in stock prices but represent an optimistic signal for the long term. They appear to have been largely driven by the US and Chinese officials, reportedly planning to meet during the weekend to negotiate a trade deal. Besides that, the President announced that the US and the UK have a trade deal – here’s what Trump said:
“The final details are being written up. In the coming weeks, we’ll have it all very conclusive.”
The main economic indicators are also optimistic – the recent jobs report shows that the US economy added 177,000 jobs in April, significantly beating expectations, and suggesting that corporations are reluctant to downsize their operations, likely in anticipation of an acceleration in the business environment once the current tariff dilemma is navigated. Industrial Production index as per Yardeni Charts stands at 103.9 in March, at the top of the historical range, suggesting that industrial activity and volumes are strong. Furthermore, aggregate weekly hours in private industries rose 0.1% on a MoM basis to a new record high of 4.7 billion during April. It is also encouraging to see the payroll employment diffusion index remain above 50.0% during April, which suggests that the US economy has added jobs on a net basis. These evolutions strongly reject the possibility of an economic recession in the US, which is a green signal for stock prices.
With that being said, we believe that stocks with insider buying throughout 2025 represent a comfortable bet for investors in the current market.
Our Methodology
To compile our list of high PE stocks insiders are buying, we used Insider Monkey’s proprietary insider trading tool to find stocks with at least two insiders buying shares during 2025. We believe that multiple insiders buying significant amounts of stock represents a higher chance that insiders have high confidence in the company. Then, we select the stocks that trade at a forward P/E ratio of 60 and above and rank them in ascending order.
We are also interested in the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Enviri Corporation (NYSE:NVRI)
Forward P/E ratio: 66.09
Enviri Corporation (NYSE:NVRI) is a global provider of environmental solutions, which, through its Harsco Environmental segment, delivers on-site material processing and resource recovery services to the steel and metals industries. The company’s Clean Earth segment specializes in the treatment, recycling, and disposal of hazardous and non-hazardous waste, while the Harsco Rail segment offers engineered maintenance equipment and services for railway and transit systems.
Enviri Corporation (NYSE:NVRI) delivered a solid first quarter with performance exceeding expectations for both adjusted EBITDA and free cash flow. The Clean Earth segment was a standout performer with double-digit earnings growth and record first-quarter results, while Harsco Environmental performed well despite challenging conditions in the global steel market. The company maintained its full-year guidance with projected EBITDA between $305 million to $325 million and free cash flow of $30 million to $50 million.
Notable developments include the successful renegotiation of a major contract with Deutsche Bahn in the Rail segment, which reduced future risk exposure. Clean Earth’s margins grew by over 100 basis points and exceeded 16% in the quarter, with strong execution in expanding service capabilities and business growth. While the company acknowledges significant macroeconomic uncertainty driven by global trade issues, management currently does not believe the direct tariff impact will be material, and recent US dollar weakness could provide a potential tailwind, particularly for the Environmental segment. The significant insider buying has happened at Enviri Corporation (NYSE:NVRI) throughout 2025, highlighting management’s confidence in the company’s future.
9. Orion Energy Systems, Inc. (NASDAQ:OESX)
Forward P/E ratio: 67.45
Orion Energy Systems, Inc. (NASDAQ:OESX) is another company with significant insider buying on our list, which specializes in energy-efficient LED lighting systems, intelligent controls, and turnkey project implementation for commercial and industrial clients. The company also delivers Electric Vehicle (EV) Charging infrastructure solutions under its Voltrek brand.
Orion Energy Systems, Inc. (NASDAQ:OESX) reported Q3 2025 revenue below expectations due to project timing delays and reduced activity in the lighting distribution channel. Despite revenue challenges, the company achieved significant margin improvements, with gross margin increasing 490 basis points to 29.4%, representing the second highest quarterly rate in 7 years. The company has successfully landed 7 new LED lighting contracts with revenue potential of $100 million to $200 million over the next 5 years.
Orion Energy Systems, Inc. (NASDAQ:OESX) is implementing strategic changes to improve future performance, including reorganizing operations into two commercial business units – Solutions and Partners – to enhance customer focus and market approach. Management has reduced the company’s annual breakeven point by at least 20% to between $78 million and $85 million, from approximately $105 million to $115 million over the past 2 years. Looking ahead, OESX has revised its fiscal 2025 revenue outlook to $77 million to $83 million but expects to achieve double-digit revenue growth and positive adjusted EBITDA in fiscal 2026.
