Build-A-Bear Workshop (NYSE:BBW) Shares Down 5.2% - Here's Why

Key Points

• Build-A-Bear Workshop's shares fell by 5.2% to $67.08, with trading volume significantly down by 85% compared to the average.
• Analysts generally have a positive outlook, with Zacks upgrading the stock to a "strong-buy" and DA Davidson increasing the target price from $64 to $85.
• The company recently announced a quarterly dividend of $0.22 per share, which reflects a yield of 1.3% and a payout ratio of 19.73%.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report) shares traded down 5.2% on Tuesday . The company traded as low as $67.35 and last traded at $67.08. 44,514 shares traded hands during trading, a decline of 85% from the average session volume of 296,124 shares. The stock had previously closed at $70.79.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Zacks Research raised Build-A-Bear Workshop from a "hold" rating to a "strong-buy" rating in a report on Friday, August 29th. Wall Street Zen downgraded Build-A-Bear Workshop from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. DA Davidson lifted their target price on Build-A-Bear Workshop from $64.00 to $85.00 and gave the stock a "buy" rating in a report on Friday, August 29th. Finally, Northland Securities lifted their target price on Build-A-Bear Workshop from $60.00 to $80.00 and gave the stock an "outperform" rating in a report on Friday, August 29th. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company's stock. Based on data from MarketBeat, Build-A-Bear Workshop currently has a consensus rating of "Buy" and an average target price of $68.00.

Build-A-Bear Workshop Stock Down 7.4%

The firm has a market cap of $860.47 million, a price-to-earnings ratio of 14.62 and a beta of 0.72. The stock has a 50 day moving average of $60.83 and a 200 day moving average of $49.36.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last posted its quarterly earnings results on Thursday, August 28th. The specialty retailer reported $0.94 EPS for the quarter, beating analysts' consensus estimates 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 return on equity of 41.14% and a net margin of 11.34%.During the same quarter in the previous year, the firm earned $0.64 earnings per share. As a group, analysts predict that Build-A-Bear Workshop, Inc. will post 3.71 EPS for the current fiscal year.

Build-A-Bear Workshop Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 9th. Shareholders of record on Thursday, September 25th will be paid a dividend of $0.22 per share. The ex-dividend date of this dividend is Thursday, September 25th. This represents a $0.88 annualized dividend and a yield of 1.3%. Build-A-Bear Workshop's payout ratio is presently 19.73%.

Insider Activity

In other Build-A-Bear Workshop news, CFO Vojin Todorovic sold 10,000 shares of the business's stock in a transaction dated 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 transaction, the chief financial officer owned 67,991 shares of the company's stock, valued at approximately $4,980,340.75. The trade was a 12.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Sharon Price John sold 30,000 shares of the business's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $73.25, for a total value of $2,197,500.00. Following the transaction, the chief executive officer directly owned 261,305 shares of the company's stock, valued at approximately $19,140,591.25. The trade was a 10.30% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 55,387 shares of company stock valued at $4,053,961. Insiders own 5.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Squarepoint Ops LLC grew its holdings in shares of Build-A-Bear Workshop by 62.7% during the fourth quarter. Squarepoint Ops LLC now owns 18,802 shares of the specialty retailer's stock worth $866,000 after purchasing an additional 7,245 shares during the last quarter. GAMMA Investing LLC grew its holdings in shares of Build-A-Bear Workshop by 3,357.4% during the first quarter. GAMMA Investing LLC now owns 4,460 shares of the specialty retailer's stock worth $166,000 after purchasing an additional 4,331 shares during the last quarter. Rhumbline Advisers grew its holdings in shares of Build-A-Bear Workshop by 6.0% during the first quarter. Rhumbline Advisers now owns 18,236 shares of the specialty retailer's stock worth $678,000 after purchasing an additional 1,025 shares during the last quarter. SG Americas Securities LLC bought a new stake in shares of Build-A-Bear Workshop during the first quarter worth about $378,000. Finally, SummerHaven Investment Management LLC grew its holdings in shares of Build-A-Bear Workshop by 1.1% during the first quarter. SummerHaven Investment Management LLC now owns 31,861 shares of the specialty retailer's stock worth $1,184,000 after purchasing an additional 340 shares during the last quarter. 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.

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