On June 23, 2023, President and CEO Sharon John sold 76,698 shares of Build-A-Bear Workshop Inc (BBW, Financial), a leading interactive retail company that allows customers to create their own customized stuffed animals. This sale comes as part of a series of transactions made by John over the past year, totaling 128,765 shares sold and no shares purchased.
Sharon John has been with Build-A-Bear Workshop Inc since 2013, initially serving as Chief Executive Officer and Chief President Bear before being promoted to President and CEO in 2016. Under her leadership, the company has expanded its product offerings and improved its financial performance.
Build-A-Bear Workshop Inc operates over 400 stores worldwide, offering a unique and interactive experience for customers to create their own stuffed animals. The company also sells a variety of clothing, accessories, and other merchandise related to its core product line. In addition to its retail stores, Build-A-Bear Workshop Inc has a strong online presence and has partnered with various entertainment properties to create themed products.
Insider Trends and Relationship with Stock Price
Over the past year, there have been no insider buys for Build-A-Bear Workshop Inc, while there have been 18 insider sells. This trend could indicate that insiders believe the stock is overvalued or that they are taking advantage of a high stock price to cash in on their holdings.
On the day of Sharon John's recent sale, shares of Build-A-Bear Workshop Inc were trading at $20.15, giving the stock a market cap of $285.020 million. The stock's price-earnings ratio is 6.02, which is lower than the industry median of 16.02 and lower than the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical valuation.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Build-A-Bear Workshop Inc has a price-to-GF-Value ratio of 0.93. This indicates that the stock is fairly valued based on its GF Value.
Conclusion
While the recent insider sell by Sharon John may raise some concerns for investors, it is essential to consider the overall context of the transaction and the company's valuation. With a price-earnings ratio lower than the industry median and a fairly valued price-to-GF-Value ratio, Build-A-Bear Workshop Inc's stock may still present an attractive investment opportunity.
However, investors should keep an eye on the insider transaction trends and monitor the company's financial performance to make informed decisions. As always, it is crucial to conduct thorough research and consider various factors before making any investment decisions.
