Big Lots (NYSE:BIG) Shares Gap Down on Disappointing Earnings

Big Lots, Inc. (NYSE:BIGGet Rating) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $30.65, but opened at $24.27. Big Lots shares last traded at $26.20, with a volume of 56,260 shares trading hands.

The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of $1.10 by ($1.49). Big Lots had a net margin of 2.89% and a return on equity of 16.21%. The firm had revenue of $1.37 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the firm earned $2.62 earnings per share. Big Lots’s quarterly revenue was down 15.4% on a year-over-year basis.

The business also recently announced a quarterly dividend, which will be paid on Friday, June 24th. Shareholders of record on Friday, June 10th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.48%. Big Lots’s dividend payout ratio is presently 23.08%.

BIG has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Big Lots from $44.00 to $31.00 in a research note on Wednesday. StockNews.com began coverage on shares of Big Lots in a research note on Thursday, March 31st. They set a “hold” rating for the company. Telsey Advisory Group dropped their price target on shares of Big Lots from $50.00 to $32.00 and set a “market perform” rating for the company in a research note on Tuesday. Bank of America dropped their price target on shares of Big Lots from $31.00 to $25.00 and set an “underperform” rating for the company in a research note on Tuesday. Finally, Loop Capital dropped their price target on shares of Big Lots from $44.00 to $38.00 and set a “hold” rating for the company in a research note on Friday, March 4th. Four analysts have rated the stock with a sell rating and six have issued a hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $32.56.

In related news, EVP Nicholas E. Padovano sold 900 shares of the stock in a transaction on Tuesday, March 22nd. The shares were sold at an average price of $38.39, for a total transaction of $34,551.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Nicholas E. Padovano sold 4,300 shares of the stock in a transaction on Wednesday, April 6th. The stock was sold at an average price of $34.30, for a total transaction of $147,490.00. Following the transaction, the executive vice president now owns 25,979 shares of the company’s stock, valued at approximately $891,079.70. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 10,000 shares of company stock valued at $349,918. Corporate insiders own 2.70% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of BIG. Morgan Stanley increased its position in Big Lots by 137.7% during the second quarter. Morgan Stanley now owns 588,818 shares of the company’s stock worth $38,867,000 after acquiring an additional 341,116 shares during the period. BlackRock Inc. grew its stake in Big Lots by 2.2% during the third quarter. BlackRock Inc. now owns 5,431,126 shares of the company’s stock worth $235,494,000 after buying an additional 119,085 shares in the last quarter. Teacher Retirement System of Texas grew its stake in Big Lots by 10.9% during the third quarter. Teacher Retirement System of Texas now owns 5,674 shares of the company’s stock worth $246,000 after buying an additional 556 shares in the last quarter. O Shaughnessy Asset Management LLC grew its stake in Big Lots by 206.5% during the third quarter. O Shaughnessy Asset Management LLC now owns 2,811 shares of the company’s stock worth $122,000 after buying an additional 1,894 shares in the last quarter. Finally, American Century Companies Inc. grew its stake in Big Lots by 0.6% during the third quarter. American Century Companies Inc. now owns 109,333 shares of the company’s stock worth $4,741,000 after buying an additional 642 shares in the last quarter. 94.42% of the stock is currently owned by hedge funds and other institutional investors.

The business’s 50 day moving average price is $34.16 and its two-hundred day moving average price is $39.19. The company has a market capitalization of $765.64 million, a price-to-earnings ratio of 5.04, a P/E/G ratio of 0.52 and a beta of 2.12.

About Big Lots (NYSE:BIG)

Big Lots, Inc, through its subsidiaries, operates as a home discount retailer in the United States. The company offers products under various merchandising categories, such as furniture category that includes upholstery, mattresses, case goods, and ready-to-assemble departments; seasonal category, which comprises patio furniture, gazebos, Christmas trim, and other holiday departments; soft home category that consists of fashion and utility bedding, bath, window, decorative textile, home organization, area rugs, home décor, and frames departments; and food category that includes beverage and grocery, candy and snacks, specialty foods, and pet departments.

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