Did Big Lots Executives Make Trades Based On Insider Profit Information?
Big Lots, Inc. (NYSE:BIG) reported on August 23, 2012, that its profits fell 38 percent in the second quarter of 2012, which sent the company's shares down as much as 38 percent in afternoon trading.
What's more, in the weeks leading up to the poor progress report, company officials sold hundreds of thousands of dollars through insider trades, suggesting these sales may have been performed based on information withheld from the public.
According to The Wall Street Journal, the company, which is crucial for helping manufacturers empty their warehouses of overstocked items, said many top-level shifts were also going on as it looks to improve its operations.
"When I look more broadly across the spring season and the inconsistencies in our business, the common theme I see is change," Big Lots president and CEO Steve Fishman told analysts. "Our business needs to be constantly evolving. When we're not changing in merchandise and driving it all the way to the store and ultimately the customer, we fall behind."
According to insider trading reports, company insiders sold a total of $894,770 worth of shares in the last three months.
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