Top 10 Stocks With Big Insider Buying, Buybacks

Next on the list is Tektronix(TEK Quote), which recently added $350 million to its share-buyback program.

That addition brings the program's total buying power to $691 million, or 20.5 million shares, representing 26% of total outstanding shares. The Beaverton, Ore., company, which makes test and measurement equipment for the computer and chip industry, also recently issued its 6-cent quarterly dividend.

Tektronix saw mixed results in the fourth quarter, as revenue rose 3.2%, but profits fell 12% due to costs that outweighed sales growth. On a positive note, its core instrument business was up 3% and operating margin improved a percentage point to 16.4%.

Though Tektronix experienced a tough fourth quarter, analysts at Thomas Weisel Partners still find the valuation attractive and maintained their outperform rating, raising their price target from $37 to $39. They offered the following thesis:

Tektronix appears well-positioned to benefit from its rich portfolio of products and solid new product pipeline targeting expanded addressable markets. Despite volatility in its communications test business, we expect an improving trajectory in key metrics through full-year 2008, and solid growth and margin expansion through full-year 2009. ... We expect improving metrics over the next several quarters to drive acceleration in earnings growth and a multiple expansion for the stock.

When a stellar investor like Bruce Sherman at Private Capital is in a stock, we take notice. Sherman's investment and money management philosophies are rooted in a basic value approach to buying stocks. It has worked out well as he has returned an astounding 20% annually since starting his fund in 1986. Besides Tektronix, Sherman's fund owns Alltel(AT Quote) and Hewlett-Packard(HPQ Quote).

Another noteworthy investor in Tektronix shares is Royce & Associates, which is known for investing in small-cap companies that are trading significantly below the firm's estimate of their current worth.

So with Tektronix we have a huge buyback, confident analysts and noteworthy investors. That makes for a pretty nice setup.