Is Big Lots Inc. (BIG) A Good Investment?


Big Lots Inc. (NYSE:BIG) finished Wednesday with a subtraction of -$0.65 to close at $14.29, a downside of -4.35 percent. An average of 1,213,920 shares of common stock have been traded in the last five days. There was a gain of $0.06 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 1,464,900 shares traded, while the 50-day average volume stands at 1,151,388.

BIG stock has decreased by -23.05% in the last month. The company shares reached their 1-month lowest point of $12.87 on 12/22/22. With the stock rallying to its 52-week high on 01/05/22, shares of the company touched a low of $12.87 and a high of $50.87 in 52 weeks. It has reached a new high 3 times so far this year and lost -68.28% or -$30.76 in price. In spite of this, the price is down -71.91% from the 52-week high.

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Insider Transactions

BIG stock investors should be aware that Big Lots Inc. (BIG) stock had its last reported insider trading activity 267 days ago on Apr 06. In this transaction, the insider spent $147,490. Executive Vice President, Padovano Nicholas E, disposed of 3,500 shares at a price of $34.82 on Apr 01. The insider now owns more than $121,870 worth of shares. Prior to that, Executive Vice President Padovano Nicholas E went on to Sale 900 shares at $38.39 each on Mar 22. An amount of $34,551 was transacted.

Valuation Metrics

Big Lots Inc. (BIG) stock’s beta is 2.04. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.07, the price-to-book (PB) ratio at 0.53.

Financial Health

The quick ratio of Big Lots Inc. for the three months ended October 30 was 0.20, and the current ratio was 1.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.59 and a total debt to equity ratio of 0.00 for the quarter ending October 30. Its gross profit as reported stood at $2.4 billion compared to revenue of $6.15 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Big Lots Inc.’s return on assets was -3.70%.

Earnings Surprise

For the three-month period that ended October 30, Big Lots Inc. had $459.9 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$103.01 million in the quarter, while revenues of -$84.15 million were grew 95.8%. The analyst consensus anticipated Big Lots Inc.’s latest quarter earnings to come in at -$2.94 per share, but it turned out to be -$2.99, a -1.70% surprise. For the quarter, EBITDA amounted to -$230.76 million. Shareholders own equity worth $28.96 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Big Lots Inc. (BIG) price momentum. RSI 9-day as of the close on 28 December was 36.04%, suggesting the stock is Neutral, with historical volatility in this time frame at 76.90%.

As of today, BIG’s price is $14.23 +0.42% or $0.06 from its 5-day moving average. BIG is currently trading -25.65% lower than its 20-day SMA and -34.27% lower than its 100-day SMA. However, the stock’s current price level is -16.38% below the SMA50 and -55.33% below the SMA200.

The stochastic %K and %D were 35.75% and 33.77%, respectively, and the average true range (ATR) was 1.11. With the 14-day stochastic at 29.40% and the average true range at 1.15, the RSI (14) stands at 37.61%. The stock has reached -0.15 on the 9-day MACD Oscillator while the 14-day reading was at -0.87.

Analyst Ratings

Credit Suisse launched coverage on Big Lots Inc. (NYSE: BIG) in its analyst report released on December 20, 2022. The firm assigned the stock an Underperform rating. The consensus rating for Big Lots Inc. (BIG) among analysts is Underweight. According to current brokerage recommendations, 3 brokerage firms advise that investors sell BIG, while 5 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

What is BIG’s price target for the next 12 months?

Analysts predict a range of price targets between $9.00 and $20.00, with a median target of $15.00. Taking a look at these predictions, the average price target given by analysts for Big Lots Inc. (BIG) stock is $14.67.


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