Build-A-Bear Workshop (NYSE:BBW) Shares Gap Up on Earnings Beat

Shares of Build-A-Bear Workshop, Inc. (NYSE:BBW) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $35.50, but opened at $40.98. Build-A-Bear Workshop shares last traded at $37.26, with a volume of 100,526 shares trading hands.

The specialty retailer reported $1.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.52 by $0.07. Build-A-Bear Workshop had a net margin of 10.58% and a return on equity of 38.35%. The company had revenue of $150.45 million during the quarter, compared to the consensus estimate of $147.53 million.

Build-A-Bear Workshop Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 10th. Investors of record on Thursday, March 27th will be given a dividend of $0.22 per share. This is a boost from Build-A-Bear Workshop’s previous quarterly dividend of $0.20. The ex-dividend date of this dividend is Thursday, March 27th. This represents a $0.88 dividend on an annualized basis and a yield of 2.42%. Build-A-Bear Workshop’s dividend payout ratio (DPR) is presently 21.28%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Northland Securities raised their price target on Build-A-Bear Workshop from $38.00 to $55.00 and gave the stock an “outperform” rating in a research note on Friday, December 6th. StockNews.com raised shares of Build-A-Bear Workshop from a “hold” rating to a “buy” rating in a research report on Thursday. Finally, DA Davidson reiterated a “buy” rating and issued a $50.00 target price on shares of Build-A-Bear Workshop in a research note on Friday.

Insiders Place Their Bets

In related news, insider J. Christopher Hurt sold 12,635 shares of the business’s stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $39.53, for a total value of $499,461.55. Following the completion of the sale, the insider now directly owns 49,386 shares in the company, valued at approximately $1,952,228.58. The trade was a 20.37 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Sharon Price John sold 68,859 shares of the company’s stock in a transaction that occurred on Tuesday, January 7th. The stock was sold at an average price of $46.06, for a total value of $3,171,645.54. Following the sale, the chief executive officer now directly owns 347,820 shares of the company’s stock, valued at $16,020,589.20. The trade was a 16.53 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 161,666 shares of company stock valued at $7,010,081 over the last three months. 7.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Build-A-Bear Workshop

A number of institutional investors have recently modified their holdings of the company. USA Financial Formulas acquired a new position in Build-A-Bear Workshop in the 4th quarter valued at $27,000. Quarry LP grew its position in shares of Build-A-Bear Workshop by 346.6% in the third quarter. Quarry LP now owns 1,295 shares of the specialty retailer’s stock valued at $45,000 after purchasing an additional 1,005 shares during the last quarter. New York State Teachers Retirement System bought a new position in shares of Build-A-Bear Workshop in the fourth quarter worth about $53,000. Fortitude Family Office LLC boosted its stake in Build-A-Bear Workshop by 34.1% during the 4th quarter. Fortitude Family Office LLC now owns 1,480 shares of the specialty retailer’s stock valued at $68,000 after purchasing an additional 376 shares during the period. Finally, Tower Research Capital LLC TRC grew its holdings in Build-A-Bear Workshop by 494.7% in the 4th quarter. Tower Research Capital LLC TRC now owns 1,689 shares of the specialty retailer’s stock valued at $78,000 after buying an additional 1,405 shares during the last quarter. Institutional investors own 79.30% of the company’s stock.

Build-A-Bear Workshop Price Performance

The business has a fifty day moving average price of $40.29 and a 200 day moving average price of $38.19. The company has a market capitalization of $489.48 million, a price-to-earnings ratio of 9.69 and a beta of 1.50.

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.