Top 10 Stocks With Big Insider Buying, Buybacks

A big repurchase makes EMC one of the stocks to watch.
Author:
Publish date:

At Stockpickr.com, we keep track of the

Top 10 Insider Purchases and Buybacks

each week. Here's the perfect setup in my mind: insiders buying the stock, the company buying back its own shares and a super-investor like

Warren Buffett

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 the 10 stocks of the week that either had big insider purchases, newly announced buybacks or super-investors accumulating shares.

For instance,

Accenture

(ACN) - Get Report

is in this week's portfolio. The consulting and outsourcing company said it will add $3 billion to its existing buyback plan, which has $1.65 billion remaining to be repurchased.

On top of increasing its buyback, ACN recently blew past the Street's expectations by recording its highest ever annual revenues and earnings per share. Fourth-quarter revenue jumped 29% to $5.11 billion along with annual revenue, which climbed 18% to $19.7 billion. EPS for the fourth quarter came in at 50 cents, while full-year EPS increased 24% to $1.97. Shareholders were also pleased to hear Accenture's board boosted its annual

dividend by 7 cents, or 20%, to 42 cents a share.

It's also good to see that a noteworthy firm like

Renaissance Technologies

owns Accenture. Averaging 35% annual returns since 1989, this New York-based hedge fund is considered the most successful hedge fund of all time.

When the best of the best buys a stock, it's not a bad idea to take notice. The fund also holds positions in semiconductor manufacturer

Infineon Technologies

(IFX)

and mobile device manufacturer

Nokia

(NOK) - Get Report

.

Another successful fund that believes in Accenture is the

T. Rowe Price Growth Stock fund

. Managed by Robert Smith and T. Rowe Price, the fund has been awarded a Morningstar rating of five stars. The fund particularly likes companies that have the ability to pay increasing dividends through strong cash flows.

So we have a buyback, record-high earnings and two well-known investors in the stock. It may be time to take a closer look at Accenture.

Next on the list is

EMC

(EMC)

. On a conference call, the data storage giant said it will double its buyback plan from $1 billion to $2 billion.

The Hopkinton, Mass.-based company said third-quarter earnings surged 77% as net income rose to $492.9 million, or 23 cents a share, up from $283.7 million or 13 cents a share in the same period last year. Revenue was also impressive, jumping 17% to $3.3 billion, beating forecasts of $3.2 billion.

A portion of the stellar earnings came from EMC selling 6 million shares of its most lucrative asset,

VMware

(VMW) - Get Report

, to

Cisco

(CSCO) - Get Report

for a one-time gain of $115.2 million. Without the sale, EMC still would have earned an impressive $377.8 million, or 17 cents a share. VMware is EMC's virtual infrastructure spinoff, which has nearly quadrupled in share price since its IPO in August. EMC still owns 86% of VMware, which recently recorded quarterly earnings that absolutely crushed estimates.

It's also good to see that a fund like

Tudor Investment

recently opened a position in EMC. This $15-billion firm focuses on strategies that include global macro trading, fundamental equity investing, emerging markets, venture capital and technical trading systems.

Major drug manufacturer

Wyeth

(WYE)

is another one of the firm's holdings.

Another owner of EMC that's worth mentioning is

Duquesne Capital

. This $4.5-billion fund is run by Stanley Druckenmiller. Druckenmiller learned his investment strategies from his hero, the legendary

George Soros

.

So we have a buyback, record earnings and two noteworthy funds buying shares. It may be time to do some homework on EMC.

And finally, we have

Gilead Sciences

(GILD) - Get Report

rounding out this week's portfolio. Through December 2010, the Foster City, CA.-based company said it will repurchase up to $3 billion in common stock on a time-to-time basis.

Recently, the drug maker said solid HIV drug sales helped spark strong third-quarter earnings. The company, which specializes in drugs for life-threatening illnesses, earned $398.3 million, or 42 cents a share, compared to a loss of $52.2 million, or 6 cents a share, in the same quarter last year. Revenue climbed 41% reaching a record high of $1.06 billion, beating the Street's prediction of $1.04 billion.

Higher-than-expected sales of the company's HIV drugs, Truvada and Atripla, forced sales to a record $962 million, up 44% from $670.1 million in the third quarter last year.

Schwab Health Care Fund

, a thriving fund, owns GILD. Schwab Health Care Fund is an open-end fund, with a Morningstar rating of four stars. It also likes health care insurance company,

Cigna

(CI) - Get Report

.

So with Gilead, we see an increased buyback, solid earnings and an outstanding fund in the stock. It could be time to take a harder look at GILD.

To see the rest of this week's picks, check out Stockpickr's

Top 10 Insider Purchases and Buybacks

portfolio.

You can also review

Barron's Top Insider Purchases

from the prior week as well as Cramer's

"Mad Money" Buybacks

.

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for

The Financial Times

and the author of

Trade Like a Hedge Fund

,

Trade Like Warren Buffett

and

SuperCa$h

. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

click here

to send him an email.

TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.