Build-A-Bear Workshop (NYSE:BBW) Shares Gap Down - What's Next?

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 prior to trading 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

A number of equities analysts recently issued reports on the stock. 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 report on Friday, August 29th. 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 report on Friday, August 29th. Wall Street Zen lowered shares of Build-A-Bear Workshop from a "strong-buy" rating to a "buy" rating in a research 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 investment analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $68.00.

Build-A-Bear Workshop Stock Down 3.8%

The company has a market capitalization of $958.15 million, a PE ratio of 16.44 and a beta of 0.72. The business's 50 day simple moving average is $56.60 and its 200 day simple moving average is $46.96.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last issued its earnings results on Thursday, August 28th. The specialty retailer reported $0.94 earnings per share for the quarter, beating analysts' consensus estimates of $0.67 by $0.27. The company had revenue of $124.25 million for 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 prior year, the company earned $0.64 EPS. On average, analysts anticipate that Build-A-Bear Workshop, Inc. will post 3.71 earnings per share for the current fiscal year.

Build-A-Bear Workshop Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Thursday, September 25th will be given 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 presently 19.73%.

Insiders Place Their Bets

In related news, Director Lesli Rotenberg sold 1,755 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $53.52, for a total transaction of $93,927.60. Following the transaction, the director owned 11,825 shares of the company's stock, valued at approximately $632,874. This trade represents a 12.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 5.80% of the company's stock.

Institutional Investors Weigh In On Build-A-Bear Workshop

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