Build-A-Bear Workshop (NYSE:BBW) Shares Down 9.1% – Should You Sell?

Build-A-Bear Workshop, Inc. (NYSE:BBW)’s stock price was down 9.1% during mid-day trading on Wednesday . The company traded as low as $41.93 and last traded at $42.07. Approximately 126,527 shares were traded during mid-day 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

A number of research analysts recently weighed in on BBW shares. StockNews.com raised shares of Build-A-Bear Workshop from a “hold” rating to a “buy” rating in a report on Thursday, December 19th. DA Davidson boosted their price objective on Build-A-Bear Workshop from $40.00 to $50.00 and gave the stock a “buy” rating in a research note on Friday, December 6th. Finally, Northland Securities lifted their target price on Build-A-Bear Workshop from $38.00 to $55.00 and gave the stock an “outperform” rating in a report on Friday, December 6th.

Build-A-Bear Workshop Trading Down 7.3 %

The firm has a market capitalization of $576.44 million, a P/E ratio of 11.41 and a beta of 1.49. The stock has a 50-day simple moving average of $40.85 and a two-hundred day simple moving average of $33.72.

Build-A-Bear Workshop (NYSE:BBW) last released its quarterly earnings data on Thursday, December 5th. The specialty retailer reported $0.73 earnings per share for the quarter, topping analysts’ consensus estimates 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 last year, the firm earned $0.53 earnings per share. As a group, research analysts expect that Build-A-Bear Workshop, Inc. will post 3.71 EPS for the current year.

Build-A-Bear Workshop Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 9th. Investors of record on Wednesday, November 27th will be issued a $0.20 dividend. The ex-dividend date of this dividend is Wednesday, November 27th. This represents a $0.80 annualized dividend and a yield of 1.87%. Build-A-Bear Workshop’s dividend payout ratio (DPR) is presently 21.28%.

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

Insider Buying and Selling at Build-A-Bear Workshop

In related news, Director Lesli Rotenberg sold 2,473 shares of the business’s stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $41.10, for a total value of $101,640.30. Following the sale, the director now directly owns 11,724 shares in the company, valued at approximately $481,856.40. The trade was a 17.42 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director George Carrara sold 2,500 shares of the stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $36.27, for a total transaction of $90,675.00. Following the transaction, the director now directly owns 18,421 shares of the company’s stock, valued at approximately $668,129.67. This trade represents a 11.95 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 16,547 shares of company stock valued at $661,216. Corporate insiders own 7.90% of the company’s stock.

Institutional Trading of Build-A-Bear Workshop

Several hedge funds have recently made changes to their positions in BBW. De Lisle Partners LLP raised its stake in Build-A-Bear Workshop by 25.9% during 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. State Street Corp lifted its position in Build-A-Bear Workshop by 34.3% during the 3rd quarter. State Street Corp now owns 372,168 shares of the specialty retailer’s stock worth $12,863,000 after acquiring an additional 94,986 shares during the period. Maverick Capital Ltd. grew its position in Build-A-Bear Workshop by 261.3% in the 3rd quarter. Maverick Capital Ltd. now owns 105,847 shares of the specialty retailer’s stock valued at $3,638,000 after buying an additional 76,551 shares during the last quarter. American Century Companies Inc. increased its stake 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 during the period. Finally, BNP Paribas Financial Markets lifted its position in Build-A-Bear Workshop by 296.2% in the third 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 during the period. 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.