Stocks With Insider Buying, Buybacks: CVS

Updated from 7:03 a.m. EDT

At Stockpickr.com, we strive to keep track of insider purchasing and buybacks each week. Here's the perfect setup in my mind: Insiders are buying the stock, the company is buying back its own shares, and a super-investor such as Warren Buffett is also buying shares. If I can get three out of three, I'm in heaven. If I can get two out of three, or even one out of three, I'm still pretty happy about the situation, particularly if the stock is cheap in other ways as well.

Each Thursday we update the Stockpickr Top 10 Insider Purchases and Buybacks portfolio, featuring stocks that recently have seen big insider purchases or new buyback programs as well as super investors accumulating shares.

CVS Caremark is in this week's portfolio. The drugstore chain said that it authorized the buyback of up to $2 billion in common stock during 2008 and 2009. The company added that the repurchases will be made on a time-to-time basis depending on market conditions.

On May 1, the Woonsocket, R.I.-based company announced record first-quarter earnings, with profit skyrocketing 83% to $748.5 million, or 51 cents a share, from $408.9 million, or 43 cents a share. Total revenue jumped 61.7% to $21.3 billion from $13.2 billion. At the end of the quarter, the company operated 6,267 pharmacies, 56 specialty pharmacy stores and 26 mail-order pharmacies.

Tom Ryan, chairman, president and CEO, stated: "I'm very pleased with our results for the quarter. We delivered strong revenue and margin growth across our businesses that led to earnings at the high end of our expectations. I'm most excited about the substantial progress we have made on our new integrated pharmacy benefit management (PBM)/retail model, which is resonating strongly in the marketplace."