Build-A-Bear Workshop (NYSE:BBW) Shares Down 4.1% - What's Next?

Key Points

• Build-A-Bear Workshop's stock price fell by 4.1% to $71.60, with a notable decline in trading volume, dropping 68% from average sessions.
• Analysts have mixed ratings for the stock, with one upgrade to "strong-buy" from Zacks Research and price targets ranging from $60.00 to $85.00.
• Building on positive earnings, the company declared a quarterly dividend of $0.22 per share, reflecting an annualized yield of 1.2%.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report)'s stock price fell 4.1% during mid-day trading on Wednesday . The company traded as low as $71.77 and last traded at $71.60. 91,836 shares were traded during mid-day trading, a decline of 68% from the average session volume of 290,249 shares. The stock had previously closed at $74.66.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on BBW. DA Davidson lifted their price objective 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. 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. Wall Street Zen cut shares of Build-A-Bear Workshop from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 23rd. Finally, Northland Securities upped their price objective 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 analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company's stock. According to data from MarketBeat, Build-A-Bear Workshop presently has a consensus rating of "Buy" and a consensus target price of $68.00.

Build-A-Bear Workshop Trading Down 1.4%

The company's fifty day simple moving average is $58.43 and its 200 day simple moving average is $47.88. The stock has a market capitalization of $960.46 million, a P/E ratio of 16.40 and a beta of 0.72.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last posted its quarterly earnings data on Thursday, August 28th. The specialty retailer reported $0.94 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $116.19 million. During the same period in the previous year, the firm posted $0.64 EPS. Equities research analysts predict that Build-A-Bear Workshop, Inc. will post 3.71 earnings per share for the current year.

Build-A-Bear Workshop Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Shareholders of record on Thursday, September 25th will be given a $0.22 dividend. The ex-dividend date 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 payout ratio is presently 19.73%.

Insider Activity at Build-A-Bear Workshop

In related news, CEO Sharon Price John sold 30,000 shares of the business's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $73.25, for a total transaction of $2,197,500.00. Following the sale, the chief executive officer owned 261,305 shares of the company's stock, valued at $19,140,591.25. The trade was a 10.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Vojin Todorovic sold 10,000 shares of the company's stock in a transaction that occurred 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 transaction, the chief financial officer owned 67,991 shares in the company, valued at approximately $4,980,340.75. This represents a 12.82% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 41,755 shares of company stock worth $3,023,928 over the last 90 days. 5.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Build-A-Bear Workshop

Several institutional investors have recently bought and sold shares of BBW. Quarry LP purchased a new position in Build-A-Bear Workshop during the 1st quarter valued at about $28,000. AlphaQuest LLC lifted its stake in shares of Build-A-Bear Workshop by 106.1% in the 1st 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 period. MTM Investment Management LLC acquired a new position in Build-A-Bear Workshop during the second quarter worth $52,000. Canada Pension Plan Investment Board acquired a new position in Build-A-Bear Workshop during the second quarter worth $57,000. Finally, Ameritas Investment Partners Inc. raised its holdings in 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 last quarter. 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.