Build-A-Bear Workshop CAO Trades $605K In Company Stock

Making a noteworthy insider sell on October 8, Eric R Fencl, CAO at Build-A-Bear Workshop BBW, is reported in the latest SEC filing.

What Happened: After conducting a thorough analysis, Fencl sold 17,274 shares of Build-A-Bear Workshop. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $605,465.

Tracking the Wednesday's morning session, Build-A-Bear Workshop shares are trading at $34.5, showing a down of 3.25%.

Discovering Build-A-Bear Workshop: A Closer Look

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. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Evaluating Earnings Performance:

• 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): Build-A-Bear Workshop's EPS reflects a decline, falling below the industry average with a current EPS of 0.64.

Debt Management: Build-A-Bear Workshop's debt-to-equity ratio is below the industry average at 0.81, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: Build-A-Bear Workshop's P/E ratio of 10.07 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.04 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Build-A-Bear Workshop's EV/EBITDA ratio, lower than industry averages at 7.32, indicates attractively priced shares.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

When analyzing transactions, investors tend to focus on those in the open market, 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.