Build-A-Bear Workshop (NYSE:BBW) Trading Down 3.4% – Should You Sell?

Shares of Build-A-Bear Workshop, Inc. (NYSE:BBW) fell 3.4% on Thursday . The company traded as low as $44.47 and last traded at $44.48. 52,701 shares changed hands during trading, a decline of 78% from the average session volume of 240,479 shares. The stock had previously closed at $46.04.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. StockNews.com upgraded shares of Build-A-Bear Workshop from a “hold” rating to a “buy” rating in a research note on Thursday, December 19th. Northland Securities increased their price target on shares of 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. Finally, DA Davidson boosted their price objective on Build-A-Bear Workshop from $40.00 to $50.00 and gave the company a “buy” rating in a report on Friday, December 6th.

Build-A-Bear Workshop Stock Performance

The firm has a market cap of $610.98 million, a P/E ratio of 12.09 and a beta of 1.53. The firm has a fifty day moving average of $40.53 and a 200-day moving average of $33.32.

Build-A-Bear Workshop (NYSE:BBW) last released its quarterly earnings results on Thursday, December 5th. The specialty retailer reported $0.73 EPS for the quarter, topping the consensus estimate of $0.70 by $0.03. Build-A-Bear Workshop had a net margin of 10.58% and a return on equity of 38.40%. During the same quarter last year, the company earned $0.53 earnings per share. Equities research analysts expect that Build-A-Bear Workshop, Inc. will post 3.71 earnings per share for the current year.

Build-A-Bear Workshop Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 9th. Investors of record on Wednesday, November 27th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.76%. The ex-dividend date of this dividend is Wednesday, November 27th. Build-A-Bear Workshop’s dividend payout ratio is currently 21.28%.

Build-A-Bear Workshop declared that its Board of Directors has initiated a share buyback plan on Wednesday, September 11th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the specialty retailer to reacquire up to 23.2% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Build-A-Bear Workshop

In related news, CAO Eric R. Fencl sold 17,274 shares of the firm’s stock in a transaction dated Monday, October 7th. The stock was sold at an average price of $35.05, for a total transaction of $605,453.70. Following the completion of the transaction, the chief accounting officer now owns 137,078 shares of the company’s stock, valued at $4,804,583.90. This trade represents a 11.19 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Craig Leavitt sold 2,500 shares of the business’s stock in a transaction that occurred on Friday, December 13th. The stock was sold at an average price of $41.36, for a total transaction of $103,400.00. Following the completion of the sale, the director now owns 78,167 shares in the company, valued at $3,232,987.12. The trade was a 3.10 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 82,146 shares of company stock valued at $2,967,226. Company insiders own 7.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. State Street Corp boosted its stake in Build-A-Bear Workshop by 34.3% in the 3rd quarter. State Street Corp now owns 372,168 shares of the specialty retailer’s stock worth $12,863,000 after purchasing an additional 94,986 shares during the period. Renaissance Technologies LLC raised its position in Build-A-Bear Workshop by 7.4% during the second quarter. Renaissance Technologies LLC now owns 256,979 shares of the specialty retailer’s stock valued at $6,494,000 after buying an additional 17,772 shares during the period. De Lisle Partners LLP lifted its stake in Build-A-Bear Workshop by 25.9% in the 3rd quarter. De Lisle Partners LLP now owns 732,911 shares of the specialty retailer’s stock worth $25,187,000 after acquiring an additional 150,619 shares in the last quarter. Franklin Resources Inc. purchased a new position in Build-A-Bear Workshop during the 3rd quarter valued at about $282,000. Finally, HighTower Advisors LLC purchased a new position in Build-A-Bear Workshop during the 3rd quarter valued at about $719,000. Institutional investors own 79.30% of the company’s stock.

Build-A-Bear Workshop Company Profile

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.