Build-A-Bear Workshop (NYSE:BBW) Shares Down 5.5% - Should You Sell?

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report)'s share price dropped 5.5% on Friday . The stock traded as low as $43.50 and last traded at $43.91. Approximately 193,076 shares traded hands during trading, a decline of 17% from the average daily volume of 232,950 shares. The stock had previously closed at $46.49.

Analysts Set New Price Targets

Several analysts have recently commented on BBW shares. DA Davidson increased their price target on shares of Build-A-Bear Workshop from $40.00 to $50.00 and gave the company a "buy" rating in a research note on Friday. Northland Securities increased their price target on shares of Build-A-Bear Workshop from $38.00 to $55.00 and gave the company an "outperform" rating in a research note on Friday. Finally, StockNews.com raised shares of Build-A-Bear Workshop from a "hold" rating to a "buy" rating in a research note on Tuesday.

Build-A-Bear Workshop Price Performance

The company's 50-day moving average price is $37.18 and its 200-day moving average price is $31.08. The company has a market cap of $554.59 million, a P/E ratio of 10.91 and a beta of 1.53.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last released its earnings results on Thursday, December 5th. The specialty retailer reported $0.73 earnings per share for the quarter, beating 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 earned $0.53 earnings per share. On average, equities research analysts predict that Build-A-Bear Workshop, Inc. will post 3.72 EPS for the current year.

Build-A-Bear Workshop Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 9th. Stockholders of record on Wednesday, November 27th will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.95%. The ex-dividend date is Wednesday, November 27th. Build-A-Bear Workshop's dividend payout ratio (DPR) is presently 21.28%.

Build-A-Bear Workshop declared that its Board of Directors has approved a share repurchase plan on Wednesday, September 11th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the specialty retailer to buy up to 23.2% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In other news, CAO Eric R. Fencl sold 17,274 shares of the firm's stock in a transaction dated Monday, October 7th. The shares were sold at an average price of $35.05, for a total transaction of $605,453.70. Following the completion of the sale, the chief accounting officer now owns 137,078 shares in the company, valued at approximately $4,804,583.90. This trade represents a 11.19 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director George Carrara sold 2,500 shares of the firm's stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $36.27, for a total transaction of $90,675.00. Following the sale, the director now owns 18,421 shares of the company's stock, valued at approximately $668,129.67. This represents a 11.95 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 80,734 shares of company stock valued at $2,844,217 in the last quarter. Company insiders own 7.90% of the company's stock.

Institutional Trading of Build-A-Bear Workshop

Hedge funds and other institutional investors have recently bought and sold shares of the business. Renaissance Technologies LLC raised its stake in Build-A-Bear Workshop by 7.4% in the 2nd quarter. Renaissance Technologies LLC now owns 256,979 shares of the specialty retailer's stock worth $6,494,000 after purchasing an additional 17,772 shares in the last quarter. De Lisle Partners LLP raised its position in shares of Build-A-Bear Workshop by 25.9% in the 3rd quarter. De Lisle Partners LLP now owns 732,911 shares of the specialty retailer's stock valued at $25,187,000 after buying an additional 150,619 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Build-A-Bear Workshop by 4.3% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 63,055 shares of the specialty retailer's stock valued at $1,885,000 after buying an additional 2,599 shares in the last quarter. Maverick Capital Ltd. acquired a new position in shares of Build-A-Bear Workshop in the 2nd quarter valued at approximately $740,000. Finally, Koss Olinger Consulting LLC acquired a new position in shares of Build-A-Bear Workshop in the 2nd quarter valued at approximately $504,000. Institutional investors and hedge funds 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.