Build-A-Bear Workshop (NYSE:BBW) Shares Gap Down - Time to Sell?

Key Points

• Build-A-Bear Workshop shares gapped down, opening at $74.00 after a previous close of $75.85, and last traded at $71.72 with a trading volume of 53,471 shares.
• Analysts have mixed ratings for Build-A-Bear, with target prices ranging from $60.00 to $85.00, and an average rating of "Buy" based on data from MarketBeat.
• The company reported earnings of $0.94 per share, exceeding expectations, and declared a quarterly dividend of $0.22 per share to be paid on October 9th.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $75.85, but opened at $74.00. Build-A-Bear Workshop shares last traded at $71.72, with a volume of 53,471 shares changing hands.

Analyst Ratings Changes

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 report on Saturday, August 23rd. Zacks Research upgraded shares of Build-A-Bear Workshop from a "hold" rating to a "strong-buy" rating in a report on Friday, August 29th. DA Davidson boosted 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 report on Friday, August 29th. Finally, Northland Securities boosted their price target on shares of Build-A-Bear Workshop from $60.00 to $80.00 and gave the company an "outperform" rating in a report on Friday, August 29th. One research analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company's stock. According to data from MarketBeat.com, Build-A-Bear Workshop currently has an average rating of "Buy" and an average price target of $68.00.

Build-A-Bear Workshop Stock Performance

The firm's 50 day simple moving average is $58.43 and its 200 day simple moving average is $47.78. The firm has a market capitalization 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 posted its 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 analysts' expectations of $116.19 million. During the same period in the previous year, the business posted $0.64 EPS. As a group, sell-side analysts forecast that Build-A-Bear Workshop, Inc. will post 3.71 earnings per share for the current year.

Build-A-Bear Workshop Announces Dividend

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

Insider Transactions at Build-A-Bear Workshop

In related news, 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 value of $93,927.60. Following the completion of the sale, the director owned 11,825 shares of the company's stock, valued at approximately $632,874. This represents a 12.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Sharon Price John sold 30,000 shares of the stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $73.25, for a total transaction 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. This trade represents a 10.30% decrease in their position. The disclosure for this sale can be found here. Insiders sold 41,755 shares of company stock valued at $3,023,928 over the last 90 days. 5.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of BBW. Quarry LP acquired a new stake in shares of Build-A-Bear Workshop during the first quarter worth about $28,000. AlphaQuest LLC increased its stake in Build-A-Bear Workshop by 106.1% in the first quarter. AlphaQuest LLC now owns 814 shares of the specialty retailer's stock valued at $30,000 after purchasing an additional 419 shares during the last quarter. MTM Investment Management LLC purchased a new position in Build-A-Bear Workshop in the second quarter valued at approximately $52,000. Canada Pension Plan Investment Board acquired a new position in shares of Build-A-Bear Workshop in the 2nd quarter valued at $57,000. Finally, Ameritas Investment Partners Inc. increased its holdings in shares of Build-A-Bear Workshop by 19.4% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 1,270 shares of the specialty retailer's stock valued at $65,000 after acquiring an additional 206 shares during the period. Hedge funds and other institutional investors 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.