Build-A-Bear Workshop (NYSE:BBW) Sets New 12-Month High – Should You Buy?

Build-A-Bear Workshop, Inc. (NYSE:BBW) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $36.67 and last traded at $36.64, with a volume of 22872 shares. The stock had previously closed at $35.78.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Northland Securities raised their price objective on shares of Build-A-Bear Workshop from $36.00 to $38.00 and gave the stock an “outperform” rating in a report on Friday, August 30th. StockNews.com raised Build-A-Bear Workshop from a “hold” rating to a “buy” rating in a research report on Monday, September 2nd.

Build-A-Bear Workshop Trading Up 3.7 %

The stock’s 50 day moving average price is $30.81 and its two-hundred day moving average price is $28.64. The firm has a market capitalization of $512.17 million, a price-to-earnings ratio of 10.25 and a beta of 1.55.

Build-A-Bear Workshop (NYSE:BBW) last posted its earnings results on Thursday, August 29th. The specialty retailer reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.57 by $0.07. Build-A-Bear Workshop had a return on equity of 37.81% and a net margin of 10.36%. The company had revenue of $111.80 million for the quarter, compared to the consensus estimate of $107.90 million. During the same period in the previous year, the business earned $0.57 earnings per share. On average, sell-side analysts forecast that Build-A-Bear Workshop, Inc. will post 3.72 earnings per share for the current fiscal year.

Build-A-Bear Workshop Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 10th. Investors of record on Thursday, September 26th were given a dividend of $0.20 per share. The ex-dividend date was Thursday, September 26th. This represents a $0.80 dividend on an annualized basis and a yield of 2.16%. Build-A-Bear Workshop’s dividend payout ratio (DPR) is 22.92%.

Build-A-Bear Workshop announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, September 11th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the specialty retailer to purchase up to 23.2% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at Build-A-Bear Workshop

In other news, CEO Sharon Price John sold 50,000 shares of the stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $33.32, for a total transaction of $1,666,000.00. Following the completion of the transaction, the chief executive officer now directly owns 465,004 shares in the company, valued at approximately $15,493,933.28. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In related news, CEO Sharon Price John sold 50,000 shares of Build-A-Bear Workshop stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $33.32, for a total value of $1,666,000.00. Following the completion of the transaction, the chief executive officer now directly owns 465,004 shares in the company, valued at approximately $15,493,933.28. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Vojin Todorovic sold 12,635 shares of the company’s stock in a transaction that occurred on Friday, October 4th. The shares were sold at an average price of $35.42, for a total value of $447,531.70. Following the sale, the chief financial officer now owns 90,695 shares in the company, valued at $3,212,416.90. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 128,234 shares of company stock valued at $4,419,542. Insiders own 7.90% of the company’s stock.

Institutional Investors Weigh In On Build-A-Bear Workshop

Several institutional investors and hedge funds have recently bought and sold shares of BBW. Wellington Management Group LLP boosted its position in Build-A-Bear Workshop by 81.4% during the 4th quarter. Wellington Management Group LLP now owns 360,329 shares of the specialty retailer’s stock valued at $8,284,000 after purchasing an additional 161,700 shares during the period. Pacifica Capital Investments LLC grew its stake in shares of Build-A-Bear Workshop by 54.1% in the 1st quarter. Pacifica Capital Investments LLC now owns 996,166 shares of the specialty retailer’s stock worth $29,755,000 after purchasing an additional 349,752 shares during the last quarter. Renaissance Technologies LLC lifted its position in shares of Build-A-Bear Workshop by 7.4% during the 2nd quarter. Renaissance Technologies LLC now owns 256,979 shares of the specialty retailer’s stock valued at $6,494,000 after acquiring an additional 17,772 shares during the last quarter. Russell Investments Group Ltd. boosted its position in shares of Build-A-Bear Workshop by 7.4% in the 1st quarter. Russell Investments Group Ltd. now owns 63,512 shares of the specialty retailer’s stock valued at $1,897,000 after purchasing an additional 4,384 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its position in shares of Build-A-Bear Workshop by 4.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 63,055 shares of the specialty retailer’s stock worth $1,885,000 after acquiring an additional 2,599 shares in the last quarter. Institutional investors and hedge funds own 79.30% of the company’s stock.

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.