Build-A-Bear Workshop (NYSE:BBW) Trading Up 7.4% - Should You Buy?

Key Points

• Build-A-Bear Workshop (NYSE:BBW) stock rose 7.4% to $69.43 following strong trading activity, significantly exceeding its average daily volume.
• Zacks Research upgraded the stock to a strong-buy rating, while other analysts have set a consensus rating of "buy" with an average target price of $68.00.
• In its latest earnings report, Build-A-Bear announced $0.94 earnings per share, surpassing estimates and marking a significant year-over-year increase in profitability.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report)'s stock price was up 7.4% during mid-day trading on Monday . The stock traded as high as $69.78 and last traded at $69.43. Approximately 344,764 shares traded hands during mid-day trading, an increase of 23% from the average daily volume of 280,600 shares. The stock had previously closed at $64.62.

Wall Street Analysts Forecast Growth

BBW has been the subject of a number of research analyst reports. Zacks Research upgraded Build-A-Bear Workshop from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 29th. DA Davidson raised their price target on 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 cut Build-A-Bear Workshop from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 23rd. Finally, Northland Securities raised their price target on 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. One equities research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $68.00.

Build-A-Bear Workshop Stock Down 0.8%

The firm has a market cap of $977.41 million, a price-to-earnings ratio of 16.59 and a beta of 0.72. The business has a 50 day moving average of $56.13 and a 200 day moving average of $46.63.

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 EPS for the quarter, beating analysts' consensus estimates of $0.67 by $0.27. The business had revenue of $124.25 million for the quarter, compared to analyst estimates of $116.19 million. Build-A-Bear Workshop had a return on equity of 42.37% and a net margin of 11.34%.During the same quarter last year, the company earned $0.64 earnings per share. 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 firm also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Shareholders of record on Thursday, September 25th will be paid a $0.22 dividend. This represents a $0.88 dividend on an annualized basis 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%.

Insider Transactions at Build-A-Bear Workshop

In other Build-A-Bear Workshop news, Director Lesli Rotenberg sold 1,755 shares of the firm's stock in a transaction dated Tuesday, June 24th. The stock was 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 of the company's stock, valued at approximately $632,874. This trade represents a 12.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 5.80% of the company's stock.

Institutional Trading of Build-A-Bear Workshop

A number of hedge funds have recently added to or reduced their stakes in the business. Ameritas Investment Partners Inc. boosted its stake 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 worth $65,000 after buying an additional 206 shares during the last quarter. OneDigital Investment Advisors LLC boosted its stake in Build-A-Bear Workshop by 2.8% in the 1st quarter. OneDigital Investment Advisors LLC now owns 10,486 shares of the specialty retailer's stock worth $390,000 after buying an additional 289 shares during the last quarter. SummerHaven Investment Management LLC boosted its stake in Build-A-Bear Workshop by 1.1% in the 1st quarter. SummerHaven Investment Management LLC now owns 31,861 shares of the specialty retailer's stock worth $1,184,000 after buying an additional 340 shares during the last quarter. SkyView Investment Advisors LLC boosted its stake in Build-A-Bear Workshop by 2.1% in the 2nd quarter. SkyView Investment Advisors LLC now owns 17,065 shares of the specialty retailer's stock worth $915,000 after buying an additional 356 shares during the last quarter. Finally, Rafferty Asset Management LLC boosted its stake in Build-A-Bear Workshop by 6.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 7,284 shares of the specialty retailer's stock worth $376,000 after buying an additional 414 shares during the last quarter. 79.30% of the stock is owned by institutional investors and hedge funds.

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.