The Case for Capitalizing on Dip Buying: Why Insider and Institutional Confidence Signals a Strategic Entry Point

In the volatile yet high-conviction sectors of biotechnology and renewable energy, market dips often serve as windows of opportunity for discerning investors. While short-term volatility can obscure long-term potential, insider and institutional buying patterns provide critical signals about undervalued assets. By analyzing recent trends in these sectors, we uncover compelling evidence that strategic dip buying-guided by confidence from those closest to the companies-can yield outsized returns.

Biotech: Insider Confidence Amid Pipeline Breakthroughs

The biotech sector, historically cyclical and capital-intensive, has seen a surge in insider buying as companies advance transformative therapies. Benitec Biopharma (BNTC), for instance, attracted a $20 million investment from Suvretta Capital Management and related entities in late 2025, part of a broader $100 million fundraising effort. This followed the company's FDA Fast Track designation for its gene therapy treatment, underscoring regulatory and market confidence. Similarly, Dexcom Inc.'s President and COO acquired 18,200 shares for $1.01 million, signaling optimism about the company's growth trajectory in diabetes management.

Despite challenges like funding tightness in 2022-2023, biotech employment rebounded to a record 2.1 million by mid-2025, reflecting resilience. Institutional investors are also reallocating capital toward late-stage projects with clearer commercialization paths, such as Dianthus Therapeutics (DNTH), which secured $150 million in a public offering after breakthrough clinical data. These moves highlight a sector where insider and institutional confidence aligns with tangible progress, making dips in biotech stocks-despite high P/E ratios-strategic entry points.

Renewables: Policy-Driven Dips and Resilient Fundamentals

The renewable energy sector has experienced a dramatic 40% surge in the RE Green Energy Index in 2025, outpacing the broader market by 25%. This growth, however, has not been linear. Policy-driven dips, such as those caused by the U.S. expedited phaseout of solar tax credits under the One Big Beautiful Bill Act (OBBBA), created buying opportunities for insiders and institutions. Solaris Energy Infrastructure's Co-CEO William Zartler purchased $473,000 in shares at a price far below the current $46.63, reflecting confidence in the company's long-term vision.

Solaris's Q3 2025 earnings report further validated this optimism: EPS of $0.32 (beating estimates by 33%) and revenue of $166.84 million (surpassing forecasts by 17%) according to the company's earnings release. The company raised its 2025 EBITDA guidance and outlined a path to $700-750 million in consolidated Adjusted EBITDA by 2028, driven by a 2,200 MW power generation fleet. Institutional investors, meanwhile, have shifted capital toward small-scale solar projects, which grew from 44 GW to 55 GW in the U.S. by 2024, outpacing utility-scale solar amid policy uncertainty. This reallocation underscores the sector's adaptability and the value of insider buying as a proxy for navigating regulatory headwinds.

The Dip-Buying Thesis: Aligning with Confidence Indicators

Historical case studies reinforce the effectiveness of dip buying when insiders and institutions act as contrarians. PepGen Inc., for instance, saw a 300% stock surge after R.A. Capital Management invested $30 million following positive trial results according to market analysis. Similarly, Transocean Ltd.'s stock rose 24% in 90 days after an insider purchase of 4 million shares as reported by financial analysts. These examples illustrate that insider buying during dips often precedes outperformance, particularly in sectors with strong growth fundamentals.

Institutional activity further validates this approach. Renewable energy investments hit $386 billion in H1 2025, with Europe's EU-27 region seeing a 63% increase despite U.S. declines according to IEA data. Meanwhile, biotech's rebound in employment and late-stage project funding suggests a sector primed for consolidation and innovation as reported by EIA.

Strategic Entry Points: Balancing Risk and Reward

While high P/E ratios in renewables (50.8x trailing as of November 2025) and biotech's negative EBITDA metrics for some firms (e.g., Benitec's -15.35 EV/EBITDA) may deter risk-averse investors, these metrics must be contextualized. For biotech, elevated valuations often reflect the value of clinical-stage pipelines, while renewables' premiums are justified by long-term decarbonization trends. The key is to focus on companies where insider and institutional buying aligns with clear catalysts-such as Solaris's 2,200 MW expansion or Dianthus's rare disease pipeline as highlighted in recent reports.

Conclusion

Dip buying in biotech and renewables is not a speculative gamble but a disciplined strategy rooted in the insights of those with the most skin in the game. As insiders and institutions continue to allocate capital toward companies with robust fundamentals and growth trajectories, investors who act on these signals stand to capitalize on the next phase of innovation in these high-conviction sectors. The market's short-term volatility, rather than a deterrent, becomes an opportunity to align with the long-term vision of those who know these companies best.