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 Quote) and Bank of America(BAC Quote).

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.