Big Lots (BIG) has disclosed a new risk, in the Accounting & Financial Operations category.
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Big Lots faces a significant business risk as it signals no intention to pay cash dividends in the foreseeable future, which places shareholders in a position where their potential for a return on investment is solely contingent on stock price appreciation. This investment dynamic is compounded by the uncertainty surrounding the company’s stock repurchase program. Although authorized by the board, Big Lots is under no obligation to execute repurchases and may cease the program at its discretion, as evidenced by the suspension during Fiscal 2020 due to the pandemic and no repurchases since the fourth quarter of 2021. Thus, investor returns are highly uncertain and dependent on market conditions and the company’s operational performance.
The average BIG stock price target is $3.00, implying -18.92% downside potential.
To learn more about Big Lots’ risk factors, click here.