Build-A-Bear Workshop (NYSE:BBW) Sets New 12-Month High - Time to Buy?

Key Points

• Build-A-Bear Workshop's stock reached a new 52-week high of $72.00 during trading, with a last traded price of $71.84 and over 1 million shares changing hands.
• The company reported quarterly earnings of $0.94 per share, surpassing analysts' expectations of $0.67, along with a revenue of $124.25 million against estimates of $116.19 million.
• A recent analyst report upgraded the company's rating from "hold" to "strong-buy," while DA Davidson raised its price target to $85.00.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $72.00 and last traded at $71.84, with a volume of 1003357 shares traded. The stock had previously closed at $64.62.

Analysts Set New Price Targets

BBW has been the subject of a number of analyst reports. Northland Securities raised their price objective on shares of Build-A-Bear Workshop from $60.00 to $80.00 and gave the stock an "outperform" rating in a report on Friday, August 29th. DA Davidson raised their price objective on shares of Build-A-Bear Workshop from $64.00 to $85.00 and gave the stock a "buy" rating in a report on Friday, August 29th. Wall Street Zen downgraded shares of Build-A-Bear Workshop from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. Finally, Zacks Research raised shares of Build-A-Bear Workshop from a "hold" rating to a "strong-buy" rating in a report on Friday, August 29th. One analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $68.00.

Build-A-Bear Workshop Trading Down 0.8%

The stock has a market capitalization of $971.49 million, a P/E ratio of 16.59 and a beta of 0.72. The firm's fifty day moving average is $56.13 and its 200-day moving average is $46.72.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last announced its quarterly earnings results on Thursday, August 28th. The specialty retailer reported $0.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.27. Build-A-Bear Workshop had a net margin of 11.34% and a return on equity of 41.14%. The firm had revenue of $124.25 million during the quarter, compared to the consensus estimate of $116.19 million. During the same period last year, the firm posted $0.64 EPS. Equities research analysts expect that Build-A-Bear Workshop, Inc. will post 3.71 EPS for the current year.

Build-A-Bear Workshop Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Thursday, September 25th will be issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, September 25th. Build-A-Bear Workshop's dividend payout ratio (DPR) is currently 19.73%.

Insider Transactions at Build-A-Bear Workshop

In related news, Director Lesli Rotenberg sold 1,755 shares of Build-A-Bear Workshop 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 directly owned 11,825 shares of the company's stock, valued at $632,874. This trade represents a 12.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 5.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Build-A-Bear Workshop

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BBW. The Manufacturers Life Insurance Company acquired a new stake in Build-A-Bear Workshop in the 4th quarter valued at about $207,000. Northern Trust Corp increased its position in Build-A-Bear Workshop by 1.4% in the 4th quarter. Northern Trust Corp now owns 121,863 shares of the specialty retailer's stock valued at $5,611,000 after acquiring an additional 1,654 shares in the last quarter. Deutsche Bank AG increased its position in Build-A-Bear Workshop by 52.9% in the 4th quarter. Deutsche Bank AG now owns 11,888 shares of the specialty retailer's stock valued at $547,000 after acquiring an additional 4,111 shares in the last quarter. Lazard Asset Management LLC increased its position in Build-A-Bear Workshop by 55.6% in the 4th quarter. Lazard Asset Management LLC now owns 55,611 shares of the specialty retailer's stock valued at $2,560,000 after acquiring an additional 19,874 shares in the last quarter. Finally, Sherbrooke Park Advisers LLC acquired a new stake in Build-A-Bear Workshop in the 4th quarter valued at about $585,000. Institutional investors and hedge funds 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.