Insider Buy - Big Lots (BIG)

Background

Big Lots (BIG) is a retail company based in the United States known for its affordable prices and wide range of merchandise. It operates as a closeout retailer, offering discounts on a variety of items including furniture, clothing, toys, and home decor. The company's business model involves buying overstocked and closeout products from manufacturers and other retailers, then selling them at reduced prices to consumers.

Which Insiders are Buying

As of June 2023, there have been 4 insider open-market purchases of BIG stock.

• 06/01/2023 - Michael Schlonsky (EVP) purchased 10,000 shares at $4.88 ($48,800 total value).

  • This represents a 5% increase in his holdings.

• 06/01/2023 - Sebastian Digrande (Director) purchased 41,733 shares at $4.97 ($14,900 total value).

  • This represents a 8% increase in his holdings

• 06/01/2023 - Ronald Robins (Director) purchased 169,897 shares at $5.01 ($50,050 total value).

  • This represents a 6% increase in his holdings.

• 5/31/2023 - Bruce Thorn (CEO) purchased 51,000 shares at $4.85 ($247,503 total value).

  • This represents a 8% increase in his holdings.

BIG stock has gotten crushed over the last couple years after a meteoric rise during the pandemic. One of it’s main competitors, Bed Bath and Beyond, filed for bankruptcy in April 2023 and sold its intellectual property to Overstock.com, who has taken over the Bed Bath and Beyond name.

Despite headwinds over the last few years, we are starting to see some signs of stabilization.

• The U.S. Census Bureau estimates October 2023 retail and food sales to be $705 billion, up 2.5% from October 2022.

• BIG closed a $300mm sale lease back to strengthen balance sheet

• They are on track for $100mm SG&A savings goal for 2023

We believe this may be a stock worth keeping an eye on, given this insider buy activity and pull back in stock price.

Insider Sell - Andersons (ANDE)

Background

Andersons (ANDE) is a diversified American agribusiness and retail company with a strong focus on the grain and agricultural sectors. The company operates through various business segments, including grain, ethanol, plant nutrient, and rail, offering services such as grain storage, processing, and distribution, along with the production and sale of ethanol and fertilizers. Additionally, The Andersons is involved in railcar leasing and repair, further diversifying its business portfolio within the agricultural and transportation industries.

Which Insiders are Selling

11/15/2023 - Ross Manire (Director) sold ~$259k of stock at a share price of $51.79. Ross is the CEO of ExtreNet Systems and also serves on the board of Zebra Technologies, a public mobile computing company.

Let’s take a look at what happened when Ross open market sold ANDE stock in the past.

Ross open market sold twice on 2/24/2014, once for $258k at a share price of $54.31, representing 37% of his total holdings. He then sold another $60k at a share price of $54.57, representing 14% of his total holdings.

ANDE then crashed to $26 over the course of the next two years, representing ~50% decline.

Now, let’s take a look at Ross’ track record in Zebra (where he is on the board) over the last few years.

Ross open market sold $3mm of stock at $502.98 on June 1, 2021 representing 13% of his stake and then open market sold another $3mm of stock at $587.74 on August 30, 2021 representing 14% of his stake at Zebra.

Zebra is currently trading at $215.33 over 50% down from when he sold his shares.

Ross is a savvy investor and we believe ANDE may be a stock worth monitoring given recent insider selling.