Even if it's not a huge purchase, we think it was good to see that Voin Todorovic, the Chief Financial Officer of Build-A-Bear Workshop, Inc. (NYSE:BBW) recently shelled out US$58k to buy stock, at US$2.74 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 27%.
Build-A-Bear Workshop Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director David Kanen bought US$271k worth of shares at a price of US$5.79 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.98). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Build-A-Bear Workshop insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$4.46. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Build-A-Bear Workshop is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Build-A-Bear Workshop
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 8.4% of Build-A-Bear Workshop shares, worth about US$3.7m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Build-A-Bear Workshop Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Build-A-Bear Workshop stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Build-A-Bear Workshop may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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