Build-A-Bear Workshop (NYSE:BBW) Trading Down 9.1% – Time to Sell?

Build-A-Bear Workshop, Inc. (NYSE:BBW)’s stock price dropped 9.1% during trading on Wednesday . The stock traded as low as $41.93 and last traded at $42.07. Approximately 126,527 shares traded hands during trading, a decline of 56% from the average daily volume of 285,376 shares. The stock had previously closed at $46.28.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on BBW shares. StockNews.com raised Build-A-Bear Workshop from a “hold” rating to a “buy” rating in a report on Thursday, December 19th. 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 note on Friday, December 6th. Finally, DA Davidson lifted their price objective on Build-A-Bear Workshop from $40.00 to $50.00 and gave the company a “buy” rating in a research report on Friday, December 6th.

Build-A-Bear Workshop Trading Down 7.3 %

The business has a 50 day simple moving average of $40.85 and a two-hundred day simple moving average of $33.72. The stock has a market cap of $576.44 million, a price-to-earnings ratio of 11.41 and a beta of 1.49.

Build-A-Bear Workshop (NYSE:BBW) last released its earnings results on Thursday, December 5th. The specialty retailer reported $0.73 earnings per share 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 period in the prior year, the company posted $0.53 earnings per share. Research analysts anticipate that Build-A-Bear Workshop, Inc. will post 3.71 EPS for the current fiscal year.

Build-A-Bear Workshop Announces Dividend

The company 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 annualized dividend and a yield of 1.87%. The ex-dividend date of this dividend is Wednesday, November 27th. Build-A-Bear Workshop’s dividend payout ratio (DPR) is presently 21.28%.

Build-A-Bear Workshop announced that its board has authorized a share buyback program on Wednesday, September 11th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the specialty retailer to buy up to 23.2% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other Build-A-Bear Workshop news, CAO Eric R. Fencl sold 9,074 shares of the company’s stock in a transaction on Monday, December 9th. The stock was sold at an average price of $40.28, for a total value of $365,500.72. Following the transaction, the chief accounting officer now owns 128,004 shares of the company’s stock, valued at approximately $5,156,001.12. This represents a 6.62 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Craig Leavitt sold 2,500 shares of the stock in a transaction on Friday, December 13th. The shares were sold at an average price of $41.36, for a total value of $103,400.00. Following the sale, the director now owns 78,167 shares of the company’s stock, valued at $3,232,987.12. This trade represents a 3.10 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 16,547 shares of company stock worth $661,216. Insiders own 7.90% of the company’s stock.

Institutional Investors Weigh In On Build-A-Bear Workshop

A number of institutional investors and hedge funds have recently modified their holdings of the stock. De Lisle Partners LLP increased 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 purchasing an additional 150,619 shares in the last quarter. 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. Maverick Capital Ltd. boosted its position in shares of Build-A-Bear Workshop by 261.3% in the third quarter. Maverick Capital Ltd. now owns 105,847 shares of the specialty retailer’s stock worth $3,638,000 after buying an additional 76,551 shares during the period. American Century Companies Inc. raised its holdings in shares of Build-A-Bear Workshop by 17.2% during the second quarter. American Century Companies Inc. now owns 320,832 shares of the specialty retailer’s stock worth $8,107,000 after acquiring an additional 47,096 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its holdings in shares of Build-A-Bear Workshop by 296.2% during the 3rd quarter. BNP Paribas Financial Markets now owns 46,880 shares of the specialty retailer’s stock valued at $1,611,000 after purchasing an additional 35,049 shares in the last quarter. 79.30% of the stock is 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.