Close-out stock may be priced for perfection, after recent sales by executives.
Big Lots (NYSE: BIG, Stock Forum) has been giving off a bad odor. Insiders have been selling shares of the retailer. The most recent seller was the senior vice president of general merchandise.
The close-out retailer has done very well for shareholders. The stock trades at $30.65 against a 52-week high of $32.50 and more than double its period low. The company is viewed a bit like Wal-Mart, a place where shoppers can get a lot for a little.
But, insiders may think the shares have peaked.
Piper Jaffray recently upgraded these shares. The quarter ending May 3 was a good one. For the first quarter of fiscal 2008, income from continuing operations was $34.5 million compared to income from continuing operations of $29.0 million in the period last year. Revenue was up 2% to $1.2 billion.
All nice news, but insider selling is insider selling.
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