10 Stocks with Insanely High PE Ratios Insiders Are Selling

4. Ares Management Corporation (NYSE:ARES)

P/E Ratio: 79.64

Insider Transaction: -50.42%

Ares Management Corporation (NYSE:ARES), based in California, is a leading global alternative asset manager. The company operates across credit, private equity, real estate, and infrastructure. Differentiating itself through its flexible capital solutions and scalable investment platforms across geographies, the company competes with significant peers like Blackstone and Apollo Global Management. There is continuous growth in the company’s assets under management owing to institutional demand for yield in a low-rate environment, but future performance relies heavily on regulatory changes and macroeconomic conditions. It is among the stocks insiders are selling.

In Q4 of 2024, the company reported its eighth consecutive NAV growth, reaching $19.89 per share. It also had a record high in new commitments of $15 billion, two times more than in 2023. Ares Management Corporation (NYSE:ARES) is the highest-rated Business Development Company (BDC) among the three top rating agencies. However, core earnings per share declined in Q4 of 2024 and Q1 of 2025 to $0.50. Along with potential impacts from changes in new government policies, the net realized losses of $61 million and net unrealized losses of $63 million in Q1 2025 further cause concerns over the company’s growth prospects.

Ares Management Corporation (NYSE:ARES) carries a high P/E ratio of 79.64, revealing massive investor expectations for the company in the sector. The sharp 50.42% increase in insider selling over the last six months points to an offloading of shares at a rate inconsistent with long-term confidence, raising red flags regarding the company’s ability to sustain its current valuation.