Build-A-Bear Workshop President and CEO Trades $1.70M In Company Stock

Revealing a significant insider sell on October 8, Sharon Price John, President and CEO at Build-A-Bear Workshop BBW, as per the latest SEC filing.

What Happened: John's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 48,325 shares of Build-A-Bear Workshop. The total transaction value is $1,700,484.

The latest market snapshot at Wednesday morning reveals Build-A-Bear Workshop shares down by 3.25%, trading at $34.5.

Get to Know Build-A-Bear Workshop Better

Build-A-Bear Workshop Inc is a U.S.-based specialty retailer of customized stuffed animals and related products. The company operates through three segments. Its Direct-to-consumer segment with key revenue, includes the operating activities of corporately-managed locations and other retail delivery operations in the U.S., Canada, China, Denmark, Ireland, and the U.K., including the company's e-commerce sites and temporary stores. The international franchising segment includes the licensing activities of the company's franchise agreements with store locations in Europe, Asia, Australia, the Middle East, and Africa. The commercial segment includes the transactions with other businesses, mainly comprised of licensing the intellectual properties for third-party use and wholesale activities.

Build-A-Bear Workshop: Delving into Financials

Revenue Growth: Build-A-Bear Workshop's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 2.36%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Insights into Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 54.18%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Build-A-Bear Workshop exhibits below-average bottom-line performance with a current EPS of 0.64.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.81.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 10.07 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.04, Build-A-Bear Workshop's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 7.32 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Exploring the Significance of Insider Trading

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Breaking Down the Significance of Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Build-A-Bear Workshop's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.