Top 10 Stocks With Major Insider Buying

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.