Form 4: Big Lots EVP Plans Sale of 63,167 Shares

Big Lots Executive Vice President Michael Allen Schlonsky filed a Form 4 indicating a future sale of 63,167 shares of common stock at an unusual price of $0.0018 per share under a Rule 10b5-1 plan.

Summary

• Executive Vice President Michael Allen Schlonsky reported a planned disposition of 63,167 shares of Big Lots Inc. common stock.
• The transaction is scheduled for August 28, 2025, and was made pursuant to a Rule 10b5-1 trading plan.
• The reported sale price per share is $0.0018, which is an exceptionally low value for common stock.
• Following this planned transaction, Schlonsky will directly own 199,617 shares.
• Indirect holdings include 4,020.65 shares in the 401(k) Plan (as of March 25, 2024) and 3,300 shares in the Joseph Schlonsky 2007 Trust, where the reporting person is trustee and their sibling is the sole beneficiary.

Sentiment

Score: 4

Explanation: The planned sale of a significant number of shares by an Executive Vice President could be perceived negatively by the market. However, the reported sale price of $0.0018 per share is highly unusual and suggests the transaction may not be a typical open-market sale, introducing ambiguity to the sentiment.

Negatives

• An Executive Vice President is planning to sell a significant number of shares (63,167 shares).
• The reported sale price of $0.0018 per share is extremely low and unusual, potentially indicating a non-market transaction, a reporting error, or a severe undervaluation if it were a market sale.

Risks

• Potential negative market perception due to an insider selling a substantial number of shares, which could be interpreted as a lack of confidence in the company's future prospects.
• Ambiguity surrounding the reported sale price of $0.0018 per share, which could lead to misinterpretation or concern among investors.

Future Outlook

The filing indicates a pre-planned future transaction for the disposition of common stock on August 28, 2025, under a Rule 10b5-1 trading plan, suggesting a structured approach to managing insider equity holdings.

Industry Context

This Form 4 filing is specific to insider trading activity and does not provide broader industry context. However, insider sales are often closely watched by the market as potential indicators of management's sentiment regarding future company performance, a common practice across all industries.

Comparison to Industry Standards

• Insider trading activity, particularly sales, is a standard disclosure requirement across all publicly traded companies.
• While the volume of shares sold (63,167) by an Executive Vice President is notable, the extremely low reported price of $0.0018 per share is highly unusual for a market transaction and would warrant further investigation if compared to typical insider sales in companies like Walmart (WMT) or Target (TGT), where market prices are significantly higher. This suggests the transaction might not be a typical open-market sale.

Corporate Governance

Stakeholder Impact

• Shareholders: May interpret the insider sale as a bearish signal, potentially influencing stock price.

Next Steps

• Execution of the planned disposition of 63,167 shares of common stock on August 28, 2025.

Key Dates

Keywords

Big Lots, BIGGQ, Insider Trading, Form 4, Stock Sale, Executive Vice President, Michael Allen Schlonsky, 10b5-1 Plan, Beneficial Ownership