Build-A-Bear Workshop (NYSE:BBW) Trading 5.8% Higher – Should You Buy?

Shares of Build-A-Bear Workshop, Inc. (NYSE:BBW) shot up 5.8% during trading on Tuesday . The company traded as high as $39.27 and last traded at $39.32. 53,502 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 280,747 shares. The stock had previously closed at $37.17.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. StockNews.com downgraded shares of Build-A-Bear Workshop from a “buy” rating to a “hold” rating in a research note on Friday, March 21st. DA Davidson reiterated a “buy” rating and issued a $50.00 target price on shares of Build-A-Bear Workshop in a report on Friday, March 14th. Finally, Northland Securities increased their price target on Build-A-Bear Workshop from $38.00 to $55.00 and gave the stock an “outperform” rating in a research report on Friday, December 6th.

Build-A-Bear Workshop Stock Down 11.8 %

The stock has a market capitalization of $484.98 million, a P/E ratio of 9.60 and a beta of 1.50. The stock’s 50 day moving average price is $39.04 and its 200-day moving average price is $38.84.

Build-A-Bear Workshop (NYSE:BBW) last announced its earnings results on Thursday, March 13th. The specialty retailer reported $1.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.52 by $0.07. The business had revenue of $150.45 million for the quarter, compared to analysts’ expectations of $147.53 million. Build-A-Bear Workshop had a return on equity of 38.35% and a net margin of 10.58%. Analysts anticipate that Build-A-Bear Workshop, Inc. will post 3.71 earnings per share for the current year.

Build-A-Bear Workshop Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 10th. Shareholders of record on Thursday, March 27th will be given a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 2.44%. This is a positive change from Build-A-Bear Workshop’s previous quarterly dividend of $0.20. The ex-dividend date is Thursday, March 27th. Build-A-Bear Workshop’s dividend payout ratio is presently 23.10%.

Insider Transactions at Build-A-Bear Workshop

In related news, CEO Sharon Price John sold 53,962 shares of the business’s stock in a transaction on Friday, January 10th. The stock was sold at an average price of $42.02, for a total transaction of $2,267,483.24. Following the transaction, the chief executive officer now directly owns 293,858 shares in the company, valued at $12,347,913.16. The trade was a 15.51 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Vojin Todorovic sold 15,000 shares of the company’s stock in a transaction dated Monday, January 13th. The shares were sold at an average price of $41.55, for a total value of $623,250.00. Following the transaction, the chief financial officer now directly owns 75,695 shares in the company, valued at $3,145,127.25. This represents a 16.54 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 161,666 shares of company stock valued at $7,010,081 in the last 90 days. Insiders own 7.90% of the company’s stock.

Institutional Trading of Build-A-Bear Workshop

A number of institutional investors have recently bought and sold shares of BBW. USA Financial Formulas acquired a new stake in shares of Build-A-Bear Workshop during the fourth quarter worth $27,000. New York State Teachers Retirement System acquired a new stake in Build-A-Bear Workshop during the 4th quarter worth about $53,000. Quarry LP grew its stake in Build-A-Bear Workshop by 346.6% during the 3rd quarter. Quarry LP now owns 1,295 shares of the specialty retailer’s stock valued at $45,000 after purchasing an additional 1,005 shares during the last quarter. Fortitude Family Office LLC increased its holdings in shares of Build-A-Bear Workshop by 34.1% in the fourth quarter. Fortitude Family Office LLC now owns 1,480 shares of the specialty retailer’s stock valued at $68,000 after purchasing an additional 376 shares during the period. Finally, Tower Research Capital LLC TRC raised its stake in shares of Build-A-Bear Workshop by 494.7% in the fourth quarter. Tower Research Capital LLC TRC now owns 1,689 shares of the specialty retailer’s stock worth $78,000 after purchasing an additional 1,405 shares during the last quarter. 79.30% of the stock is currently owned by institutional investors and hedge funds.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear.