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3 Stocks That Gurus, Insiders and Companies Are Buying

According to the Triple Buys Screener, a GuruFocus Premium feature, three stocks where gurus, insiders and the company itself are buying shares are Sarepta Therapeutics Inc. (NASDAQ:SRPT), Gulfport Energy Corp. (NASDAQ:GPOR) and F.N.B. Corp. (NYSE:FNB).

CNBC reported Goldman Sachs Group Inc. (NYSE:GS), a large bank holding of Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B), said in a note that corporate buybacks are "plummeting as companies tighten their purse strings." Despite this, the investment bank said that while the amount spent on company share buybacks this year declined 17% from the amount spent on buybacks last year, the amount spent on buybacks this year is still projected to be "the second-highest total on record."


Guru buys versus insider buys

As the name suggests, GuruFocus focuses on the actions of investing gurus, which include hedge fund managers like Ray Dalio (Trades, Portfolio) and Bill Ackman (Trades, Portfolio) and mutual fund managers like the T Rowe Price Equity Income Fund (Trades, Portfolio).

Per Securities and Exchange Commission regulations, gurus must report their quarterly portfolios within 45 days after the quarter ends. The major exception is when a guru makes a trade in a company where he owns at least 5% of the total shares outstanding. The SEC requires gurus to report such trades within 10 business days of the transaction. GuruFocus populates such trades under Real-Time Picks.

Insiders, which include company directors and C-level employees, are required to file trades involving their company within two business days. According to the research article on double buys, legendary investor Peter Lynch once said that insiders usually buy shares for just one reason: shares are expected to rise.

Triple buys

A triple buy, like the stock mentioned in the film "Money Monster," is a stock where gurus, insiders and the company itself are buying shares. As of Monday, three stocks had at least three guru buys and three insider buys over the past three months, as well as a share repurchase rate of at least 3% per year on average over the past three years.

Sarepta

Sarepta has three guru buys, seven insider buys and a share repurchase rate of 9.30% according to the triple buys page.

The Cambridge, Massachusetts-based biotech company targets a broad range of diseases while focusing on rapid development of its drug candidates. According to GuruFocus, Sarepta's cash-to-debt ratio of 2.29 and debt-to-equity ratio of 0.44 are underperforming 68.06% and 76.05% of global competitors. Despite this, the company can cover its long-term debt using cash on hand based on its cash-to-debt ratio, suggesting good financial strength.

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Gurus with holdings in Sarepta include Pioneer Investments (Trades, Portfolio) and Jim Simons (Trades, Portfolio)' Renaissance Technologies.

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Gulfport

Gulfport has three guru buys, three insider buys and a share repurchase rate of 17.20%.

The Oklahoma City-based energy company explores and produces oil and gas, concentrating on the Utica Shale play in Appalachia. GuruFocus lists several positive investing signs for Gulfport, including a strong Piotroski F-score of 8 and net profit margins that outperform 87.53% of global competitors.

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Gurus with large holdings in Gulfport include Renaissance Technologies and Joel Greenblatt (Trades, Portfolio).

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F.N.B.

F.N.B. has four guru buys, three insider buys and a share repurchase rate of 8.20%.

The Pittsburgh-based regional bank provides commercial banking, consumer banking, wealth management and other financial services through its subsidiaries, which include the First National Bank of Pennsylvania. According to GuruFocus, although the company's equity-to-asset ratio of 0.14 outperforms 83.26% of global competitors, F.N.B.'s cash-to-debt ratio of 0.14 underperforms 89.10% of global regional banks.

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Disclosure: No positions.

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This article first appeared on GuruFocus.