It was a short week of trading due to Memorial Day. As such, the roster of insider buys was small too.
However, we did find a BIG buy that caught our attention for a couple of reasons. Cluster buying by
multiple individuals and two changes of heart.
A quartet of Big Lots, Inc. (BIG) insiders bought a combined 74,000 shares, investing more than
$361,000: cluster buying.
Director Sebastian DiGrande bought 3,000 shares for $14,900.
Executive Vice Presidents (EVP) Michael Schlonsky and Ronald Robins each acquired 10,000 at $4.800
and $5.005, respectively.
President and Chief Executive Officer (CEO) Bruce Thorn purchased 51,000, spending close to a quarter-
For all but CEO Thorn, it was the first time any of the four bought BIG stock. Thorn had one previous
quarter-million dollar buy in December 2018 at $29.46. Obviously, his timing was off. However, EVPs
Schlonsky and Robins’ trading histories exhibit changes of heart. Both did nothing but sell Big Lots prior
to last week’s acquisitions. Schlonsky pocketed nearly $5 million since November 2014 and Robins a
touch more than $1.5 million since March 2017.
BIGs business model revolves around purchasing excess inventory and selling it at discounted prices,
allowing customers to find bargains on various products. Big Lots sources its merchandise from
manufacturers, distributors, and wholesalers, ensuring a diverse product selection across different
In addition to its physical stores, Big Lots operates an e-commerce platform, enabling customers to shop
online and have products delivered to their homes. The company has also invested in improving its
digital presence and expanding its omnichannel capabilities to cater to changing consumer preferences.
Big Lots has undergone various strategic initiatives over the years to enhance its business operations
and optimize its store footprint. This includes remodeling stores, improving merchandising strategies,
and focusing on key product categories with higher profit margins. The company aims to provide a
convenient and enjoyable shopping experience for its customers while remaining competitive in the
BIG may perform well during inflationary times, where consumers are actively seeking ways to stretch
their budgets. By offering competitive prices, the company can attract customers looking for affordable
alternatives to traditional retail options.
While higher prices might drive consumers to seek lower priced alternatives, Wall Street doesn’t see BIG
moving back to profitability any time soon. Analysts forecast a loss of $8.69 this year and $5.37 next
year. Meanwhile, revenue is expected to drop close to 11 percent in 2023 from $5.13 billion last year to
$4.89 billion this year and $4.85 billion in 2024.
OVERALL: Despite Wall Street’s muted expectations for the next few years, Big Lots, Inc. (BIG) could
offer some upside and value for longer-term investors. Analysts have a one-year price target of $6.85,
about 16 percent upside from its $5.90 closing price on Monday, June 5, 2023.
On the value front, BIG trades for 3 cents for every dollar per share in sales and at considerably less than
its book value of $19 per share.
BIG is only appropriate for long-term investors with a time horizon of at least two-years and well above
average risk tolerance.
1 – https://www.secform4.com/insider-trading/768835.htm
2 – https://www.secform4.com/insider-trading/1215178.htm
3 – https://www.secform4.com/insider-trading/1557088.htm
4 – https://www.secform4.com/insider-trading/1499263.htm
5 – https://finance.yahoo.com/quote/BIG/analysis?p=BIG
6 – https://finance.yahoo.com/quote/BIG?p=BIG
7 – https://finance.yahoo.com/quote/BIG/key-statistics?p=BIG