Build-A-Bear Workshop (NYSE:BBW) Reaches New 1-Year High - Still a Buy?

Key Points

• Build-A-Bear Workshop shares reached a new 52-week high at $75.85, with a last trade at $75.43 and a trading volume of 536,676 shares.
• Analysts have mixed ratings on the stock, with one upgrading to a strong-buy and others raising target prices significantly, indicating a consensus target of $68.00 and an overall average rating of Buy.
• The company announced a quarterly dividend of $0.22 per share, which will be paid on October 9, contributing to an annualized yield of 1.2%.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report)'s stock price hit a new 52-week high on Monday . The company traded as high as $75.85 and last traded at $75.43, with a volume of 536676 shares traded. The stock had previously closed at $73.98.

Analyst Upgrades and Downgrades

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

Build-A-Bear Workshop Stock Performance

The company's 50 day moving average price is $58.43 and its 200 day moving average price is $47.78. The company has a market cap of $960.46 million, a price-to-earnings ratio of 16.40 and a beta of 0.72.

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 EPS for the quarter, topping 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 company had revenue of $124.25 million for the quarter, compared to analyst estimates of $116.19 million. During the same quarter in the prior year, the business posted $0.64 EPS. On average, equities research analysts forecast that Build-A-Bear Workshop, Inc. will post 3.71 EPS for the current fiscal year.

Build-A-Bear Workshop Dividend Announcement

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

Insiders Place Their Bets

In other Build-A-Bear Workshop news, Director Lesli Rotenberg sold 1,755 shares of the firm's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $53.52, for a total value of $93,927.60. Following the sale, the director directly owned 11,825 shares in the company, valued at $632,874. This trade represents a 12.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Vojin Todorovic sold 10,000 shares of the firm's stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $73.25, for a total transaction of $732,500.00. Following the completion of the sale, the chief financial officer owned 67,991 shares in the company, valued at $4,980,340.75. This represents a 12.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 41,755 shares of company stock worth $3,023,928 in the last ninety days. Insiders own 5.80% of the company's stock.

Institutional Trading of Build-A-Bear Workshop

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Exchange Traded Concepts LLC acquired a new stake in Build-A-Bear Workshop in the 1st quarter worth $250,000. Foundry Partners LLC lifted its holdings in shares of Build-A-Bear Workshop by 138.1% during the 1st quarter. Foundry Partners LLC now owns 115,885 shares of the specialty retailer's stock worth $4,307,000 after acquiring an additional 67,205 shares during the period. Squarepoint Ops LLC lifted its holdings in shares of Build-A-Bear Workshop by 62.7% during the 4th quarter. Squarepoint Ops LLC now owns 18,802 shares of the specialty retailer's stock worth $866,000 after acquiring an additional 7,245 shares during the period. Janney Montgomery Scott LLC bought a new position in shares of Build-A-Bear Workshop during the 1st quarter worth about $850,000. Finally, CWA Asset Management Group LLC lifted its holdings in shares of Build-A-Bear Workshop by 43.0% during the 1st quarter. CWA Asset Management Group LLC now owns 24,836 shares of the specialty retailer's stock worth $923,000 after acquiring an additional 7,467 shares during the period. 79.30% of the stock is currently 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.