Build-A-Bear Workshop (NYSE:BBW) Reaches New 52-Week High on Earnings Beat

Build-A-Bear Workshop, Inc. (NYSE:BBW) reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $43.74 and last traded at $42.38, with a volume of 170858 shares trading hands. The stock had previously closed at $37.92.

The specialty retailer reported $0.73 EPS for the quarter, topping analysts’ consensus estimates of $0.70 by $0.03. Build-A-Bear Workshop had a net margin of 10.36% and a return on equity of 37.81%. During the same period in the prior year, the company posted $0.53 EPS.

Build-A-Bear Workshop Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 9th. Shareholders of record on Wednesday, November 27th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 1.72%. The ex-dividend date is Wednesday, November 27th. Build-A-Bear Workshop’s dividend payout ratio is presently 22.47%.

Build-A-Bear Workshop announced that its Board of Directors has approved a stock buyback program on Wednesday, September 11th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the specialty retailer to buy up to 23.2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Northland Securities increased their price objective on Build-A-Bear Workshop from $36.00 to $38.00 and gave the stock an “outperform” rating in a report on Friday, August 30th. StockNews.com raised shares of Build-A-Bear Workshop from a “hold” rating to a “buy” rating in a report on Tuesday.

Insiders Place Their Bets

In other Build-A-Bear Workshop news, CFO Vojin Todorovic sold 12,635 shares of the company’s stock in a transaction that occurred on Friday, October 4th. The stock was sold at an average price of $35.42, for a total value of $447,531.70. Following the completion of the transaction, the chief financial officer now owns 90,695 shares of the company’s stock, valued at $3,212,416.90. This represents a 12.23 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Eric R. Fencl sold 17,274 shares of the firm’s stock in a transaction that occurred on Monday, October 7th. The stock was sold at an average price of $35.05, for a total value of $605,453.70. Following the completion of the sale, the chief accounting officer now owns 137,078 shares of the company’s stock, valued at $4,804,583.90. This represents a 11.19 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 80,734 shares of company stock valued at $2,844,217 in the last three months. Company insiders own 7.90% of the company’s stock.

Institutional Investors Weigh In On Build-A-Bear Workshop

Several institutional investors and hedge funds have recently bought and sold shares of the business. Franklin Resources Inc. bought a new position in shares of Build-A-Bear Workshop during the 3rd quarter worth approximately $282,000. SkyView Investment Advisors LLC lifted its holdings in shares of Build-A-Bear Workshop by 2.4% during the third quarter. SkyView Investment Advisors LLC now owns 31,695 shares of the specialty retailer’s stock valued at $1,089,000 after acquiring an additional 734 shares during the period. Barclays PLC boosted its stake in shares of Build-A-Bear Workshop by 311.3% in the 3rd quarter. Barclays PLC now owns 18,246 shares of the specialty retailer’s stock valued at $627,000 after purchasing an additional 13,810 shares in the last quarter. Hohimer Wealth Management LLC bought a new stake in shares of Build-A-Bear Workshop in the 3rd quarter worth about $230,000. Finally, MML Investors Services LLC bought a new position in Build-A-Bear Workshop during the 3rd quarter valued at about $338,000. Institutional investors own 79.30% of the company’s stock.

Build-A-Bear Workshop Trading Up 22.6 %

The stock has a market capitalization of $628.54 million, a P/E ratio of 11.83 and a beta of 1.53. The firm’s fifty day moving average is $36.71 and its 200-day moving average is $30.88.

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.