Build-A-Bear Workshop (NYSE:BBW) Hits New 12-Month High After Earnings Beat

Key Points

• Build-A-Bear Workshop reached a new 52-week high of $70.01 after reporting an earnings per share (EPS) of $0.94, significantly exceeding the consensus estimate of $0.67.
• The company announced a $0.22 quarterly dividend, leading to an annualized dividend of $0.88 and a dividend yield of 1.4%.
• Insider selling has been notable, with over 48,248 shares sold by insiders valued at approximately $2.28 million in the last ninety days.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report)'s share price hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The company traded as high as $70.01 and last traded at $66.78, with a volume of 36159 shares changing hands. The stock had previously closed at $58.56.

The specialty retailer reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.67 by $0.27. The business had revenue of $124.25 million during the quarter, compared to the consensus estimate of $116.19 million. Build-A-Bear Workshop had a net margin of 11.34% and a return on equity of 42.37%. During the same quarter in the previous year, the firm earned $0.64 EPS.

Build-A-Bear Workshop Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Stockholders of record on Thursday, June 26th were given a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Thursday, June 26th. Build-A-Bear Workshop's payout ratio is currently 19.73%.

Analyst Upgrades and Downgrades

Several research firms recently commented on BBW. DA Davidson upped their price target on shares of Build-A-Bear Workshop from $64.00 to $85.00 and gave the company a "buy" rating in a research report on Friday. Northland Securities upped their price target on shares of Build-A-Bear Workshop from $60.00 to $80.00 and gave the stock an "outperform" rating in a research note on Friday. Piper Sandler upped their price target on shares of Build-A-Bear Workshop from $35.00 to $39.00 and gave the stock an "overweight" rating in a research note on Thursday, May 15th. Finally, Wall Street Zen cut shares of Build-A-Bear Workshop from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 23rd. Three equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $68.00.

Insider Activity

In other Build-A-Bear Workshop news, Director Craig Leavitt sold 8,250 shares of the company's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $50.21, for a total value of $414,232.50. Following the transaction, the director directly owned 72,392 shares in the company, valued at approximately $3,634,802.32. This represents a 10.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Lesli Rotenberg sold 1,755 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $53.52, for a total transaction of $93,927.60. Following the completion of the transaction, the director owned 11,825 shares in the company, valued at approximately $632,874. This trade represents a 12.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 48,248 shares of company stock valued at $2,276,383 in the last 90 days. Company insiders own 5.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Quarry LP purchased a new position in Build-A-Bear Workshop in the 1st quarter valued at about $28,000. AlphaQuest LLC lifted its holdings in shares of Build-A-Bear Workshop by 106.1% during the 1st quarter. AlphaQuest LLC now owns 814 shares of the specialty retailer's stock worth $30,000 after acquiring an additional 419 shares during the period. MTM Investment Management LLC purchased a new position in shares of Build-A-Bear Workshop during the 2nd quarter worth about $52,000. Canada Pension Plan Investment Board purchased a new position in shares of Build-A-Bear Workshop during the 2nd quarter worth about $57,000. Finally, Ameritas Investment Partners Inc. lifted its holdings in shares of Build-A-Bear Workshop by 19.4% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 1,270 shares of the specialty retailer's stock worth $65,000 after acquiring an additional 206 shares during the period. 79.30% of the stock is currently owned by hedge funds and other institutional investors.

Build-A-Bear Workshop Stock Performance

The firm has a market capitalization of $799.75 million, a PE ratio of 13.57 and a beta of 0.72. The company's fifty day moving average price is $53.29 and its two-hundred day moving average price is $44.80.

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.