On June 28, 2023, Sharon John, President and CEO of Build-A-Bear Workshop Inc (BBW, Financial), sold 45,957 shares of the company. This move is part of a series of insider sell transactions that have been taking place over the past year.
Sharon John has been at the helm of Build-A-Bear Workshop Inc since 2013. Under her leadership, the company has seen significant growth and expansion. Build-A-Bear Workshop Inc is a specialty retailer that offers an interactive make-your-own stuffed animal retail-entertainment experience. The company operates in three segments: Direct-to-Consumer, International Franchising, and Commercial.
Over the past year, Sharon John has sold a total of 174,722 shares and has not made any purchases. This trend is consistent with the overall insider transaction history for Build-A-Bear Workshop Inc, which shows 19 insider sells and no insider buys over the past year.
On the day of Sharon John's recent sell, shares of Build-A-Bear Workshop Inc were trading for $20.26 apiece, giving the stock a market cap of $306.520 million. The price-earnings ratio is 6.47, which is lower than the industry median of 16.17 and lower than the company’s historical median price-earnings ratio.
With a price of $20.26 and a GuruFocus Value of $21.57, Build-A-Bear Workshop Inc has a price-to-GF-Value ratio of 0.94. This suggests that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
While the insider sell transactions by Sharon John may raise some eyebrows, it's important to note that these transactions do not necessarily indicate a negative outlook for the company. Insiders sell shares for a variety of reasons, and it's crucial to consider the overall financial health and performance of the company when making investment decisions.
As of now, Build-A-Bear Workshop Inc appears to be fairly valued, and its lower-than-average price-earnings ratio compared to the industry median suggests potential for growth. However, investors should continue to monitor the company's performance and insider transactions to make informed decisions.
