Top 10 Stocks With Big Insider Buying, Buybacks

The stock is currently off of its $121 high this year, mostly due to weak third-quarter software sales. However, the fourth quarter has historically been strong, and the company's service revenues are still growing, as are sales to emerging markets and small businesses.

A recent Barron's article also noted that Bob Djurdjevic of Annex Research figures the shares are worth $125. He believes the financial services woes will last six to nine months. "Beyond that, sales will be on an upward spiral," he says.

It's also good to see that a firm like Renaissance Technologies is a believer in IBM's stock. The New York-based hedge fund's $5 billion Medallion Fund is considered one of the most successful hedge funds, yielding higher returns than such legendary investors as Bruce Kovner, George Soros and Paul Tudor Jones. A couple of its new positions include Amazon.com(AMZN - Cramer's Take - Stockpickr) and Bank of America(BAC - Cramer's Take - Stockpickr).

We also like to see that LSV Value Equity Fund believes in IBM shares. This fund seeks long-term growth of capital and boasts a three-year return of 24%-plus.

So with IBM, we have a huge buyback as part of a three-prong plan to substantially increase earnings, a solid fourth-quarter outlook, analyst support with a nice target price and two well-known investors in the stock. It may be time to take a closer look at Big Blue.