Don't Ignore The Fact That This Insider Just Sold Some Shares In Build-A-Bear Workshop, Inc. (NYSE:BBW)

Anyone interested in Build-A-Bear Workshop, Inc. (NYSE:BBW) should probably be aware that the Chief Administrative Officer, Eric Fencl, recently divested US$327k worth of shares in the company, at an average price of US$24.10 each. On the bright side, that sale was only 6.5% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Build-A-Bear Workshop

The Last 12 Months Of Insider Transactions At Build-A-Bear Workshop

Over the last year, we can see that the biggest insider sale was by the Chief Operations & Experience Officer, J. Hurt, for US$536k worth of shares, at about US$19.20 per share. That means that an insider was selling shares at slightly below the current price (US$23.97). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 22% of J. Hurt's stake.

Build-A-Bear Workshop insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Build-A-Bear Workshop Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.6% of Build-A-Bear Workshop shares, worth about US$33m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Build-A-Bear Workshop Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Build-A-Bear Workshop is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Build-A-Bear Workshop you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.