10 Stocks with Insanely High PE Ratios Insiders Are Selling

1. Innoviva, Inc. (NASDAQ:INVA)

P/E Ratio: 89.58

Insider Transaction: -69.15%

California-based company, Innoviva, Inc. (NASDAQ:INVA) is a healthcare asset management firm with royalty interests in respiratory therapies. The company also has a growing portfolio of healthcare investments. Initially deriving its revenue from GlaxoSmithKline-partnered drugs like Trelegy and Anoro, the company is now diversified into hospital and infectious disease assets through strategic acquisitions. With market peers like Royalty Pharma and similar monetization entities increasing the competition levels, the company’s future performance is hanging on optimizing investment returns and capturing synergies across its expanding healthcare holdings.

Innoviva, Inc. (NASDAQ:INVA)’s core royalty platform showed continued strength in 2024, realizing $255.6 million in revenue for the full year. Additionally, Innoviva Specialty Therapeutics’s U.S. net product sales growth of 47% year-over-year translates positively among the investors in the market. The company has also secured U.S. rights to ZEVTERA® and plans to launch it in mid-2025. The integration is expected to strengthen the company’s therapeutics platform and raise the possibility of significant future revenue. Meanwhile, the gross royalty revenue from GSK decreased in Q4 2024 to $66 million, signaling caution. Investment value has also dropped, mainly in Armata Pharma, causing a loss of $123.4 million to the net income in 2024 and suggesting potential hurdles to profit-making in the future.

With a substantially high P/E ratio of 89.58, Innoviva, Inc. (NASDAQ:INVA) appears priced far beyond fundamental norms. Insider selling in the last six months has spiked by over 69.15%, reinforcing that insiders could not see any justification for such a high valuation.

Overall, Innoviva, Inc. (NASDAQ:INVA) ranks first among the 10 stocks with insanely high P/E ratios insiders are selling. While we acknowledge the potential of INVA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than INVA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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