Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Big Lots, Inc. (BIG): Hedge Funds Are Bullish and Insiders Are Undecided, What Should You Do?

At the moment, there are plenty of metrics market participants can use to track stocks. A duo of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can beat the broader indices by a very impressive margin (see just how much).

Just as useful, optimistic insider trading activity is another way to analyze the marketplace. There are many reasons for an upper level exec to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this tactic if you understand where to look (learn more here).

Big Lots, Inc.

Now that that’s out of the way, it’s important to examine the recent info for Big Lots, Inc. (NYSE:BIG).

What have hedge funds been doing with Big Lots, Inc. (NYSE:BIG)?

At Q2’s end, a total of 23 of the hedge funds we track held long positions in this stock, a change of 5% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their holdings substantially.

When using filings from the hedgies we track, Larry Robbins’s Glenview Capital had the most valuable position in Big Lots, Inc. (NYSE:BIG), worth close to $52.6 million, comprising 0.5% of its total 13F portfolio. Sitting at the No. 2 spot is Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, which held a $48.3 million position; 1.3% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Mark Travis’s Intrepid Capital Management, Ken Griffin’s Citadel Investment Group and Cliff Asness’s AQR Capital Management.

As one would understandably expect, specific money managers have jumped into Big Lots, Inc. (NYSE:BIG) headfirst. Glenview Capital, managed by Larry Robbins, established the most valuable position in Big Lots, Inc. (NYSE:BIG). Glenview Capital had 52.6 million invested in the company at the end of the quarter. Matt Sirovich and Jeremy Mindich’s Scopia Capital also made a $48.3 million investment in the stock during the quarter. The other funds with brand new BIG positions are Mark Travis’s Intrepid Capital Management, Ken Griffin’s Citadel Investment Group, and Cliff Asness’s AQR Capital Management.

How have insiders been trading Big Lots, Inc. (NYSE:BIG)?

Insider buying is best served when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time frame, Big Lots, Inc. (NYSE:BIG) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Big Lots, Inc. (NYSE:BIG). These stocks are Tuesday Morning Corporation (NASDAQ:TUES), Dollar Tree, Inc. (NASDAQ:DLTR), Fred’s, Inc. (NASDAQ:FRED), Family Dollar Stores, Inc. (NYSE:FDO), and PriceSmart, Inc. (NASDAQ:PSMT). All of these stocks are in the discount, variety stores industry and their market caps match BIG’s market cap.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.