Heinz currently trades for roughly 10 times EBITDA (earnings before interest, taxes, depreciation and amortization), but you can expect changes at the company fairly soon. Peltz obviously sees value in Heinz, and right after he upped his stake, rumors started swirling about the company getting acquired.

Peltz ultimately won two seats on the board, along with the respect of Heinz executives and board members, with his new ideas and vision for the company. Since Peltz launched his initiative a year ago, Heinz stock has jumped 35% to around $46, putting nearly $4 billion in shareholders' pockets.

We were also glad to see that Heinz is owned by the American Century Equity Income Fund, which Fortune magazine called one of the seven funds to own in 2007. In addition to Heinz, both AT&T(T Quote) and Pfizer(PFE Quote) are top picks of the American Century fund.

So with the CEO of Heinz North America recently buying shares, a catalyst shareholder in Peltz and a top mutual fund in the name, Heinz is definitely worth taking a look at.

Next up is CVS-Caremark(CVS Quote), which recently announced a $5 billion dollar stock buyback. Dave Rickard, executive vice president and chief financial officer of CVS-Caremark, stated: "We're very pleased with the board's decision today. We expect to repurchase shares as appropriate throughout the rest of this year, further optimizing our capital structure."

Retail drugstore operator CVS acquired drug benefits manager Caremark for about $27 billion at the beginning of May, and the combined company recently announced that its earnings rose 24% on strong revenue growth in the first quarter.

At the time, CEO Tom Ryan emphasized that these were two very healthy businesses that came together and that the "real win here is [that] it rounds us out as a health care provider." CFO Rickard chimed in that the combined company is "sitting on a bed of roses," as trends in most areas of the business should be favorable, and surpassing prior guidance shouldn't be a problem.

In order to include a company in the Top 10 Insider Purchases and Buybacks portfolio, we also like to make sure there are some smart investors who have analyzed the stock and feel good about owning it.

In the case of CVS-Caremark, one such investor is Edward Owens, the well-known manager of the $15 billion dollar Vanguard Health Care Fund. He has run the fund since 1984, and it has posted 19% annual returns since its inception. In addition to owning CVS-Caremark, Owens also likes Eli Lilly(LLY Quote) and Schering-Plough(SGP Quote).

Maverick Capital is another all-star fund that owns CVS-Caremark. Maverick is a $10 billion fund started by Lee S. Ainslie III, who was a protege of legendary investor Julian Robertson at Tiger Management, one of the most successful hedge funds in history. Maverick is known as a classic stock-picking fund that focuses on fundamentals and cash flow.

So we have all the right ingredients for CVS-Caremark: an enormous buyback, solid earnings and guidance and highly regarded fund managers who own the stock.

Finally, let's take a look at L-3 Communications(LLL Quote). This is another stock we like not only because of insider buying but also because it hammers home a point Jim Cramer likes to make whenever he gets the chance -- as he did on a recent Mad Money show:

When a stock's price reaches its 52-week high and insiders keep buying, that's a sign something big is going on. The stock is undervalued, and you need to make your move.

Not every insider has the guts to buy a stock that is at or near its peak. But when you see this happening, you know those insiders buying at those levels are putting their money where their mouth is and saying, 'My stock is way too cheap, even here.' L-3 Communications falls into this rare category. L-3 Communications is an archetypal high-tech defense contractor. It had two directors buy thousands of shares this past February. First, Peter Cohen, a director, bought 15,000 shares and then Robert Miller, another director, bought 45,000 shares. The highest they paid was $87.20; L-3 Communications is now trading at $93[-plus].

At the time when the insiders bought it, L-3 Communications was at its 52-week high. Now the high's been pushed much higher. It clearly has much more room to run.

The stock is also owned by the Alger Aggressive Growth Fund, which has posted some stellar returns and received a four-star rating from Morningstar.

To see the rest of this week's picks, check out Stockpickr's Top 10 Insider Purchases and Buybacks portfolio.

Also, for a closer look at Stockpickr's guide to insider purchases and stock buybacks, you can review the last few weeks' picks at the Top 10 Insider Purchases and Buybacks I portfolio, the Top 10 Insider Purchases and Buybacks II portfolio and the Top 10 Insider Purchases and Buybacks III portfolio. You can also review the Barron's Top Insider Purchases from the prior week, as well as Cramer's Mad Money Buybacks.