We'd be surprised if Build-A-Bear Workshop, Inc. (NYSE:BBW) shareholders haven't noticed that the Independent Director, George Carrara, recently sold US$104k worth of stock at US$34.52 per share. That sale was 21% of their holding, so it does make us raise an eyebrow.

Build-A-Bear Workshop Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Chairman, Craig Leavitt, for US$414k worth of shares, at about US$50.21 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$33.03). So it may not tell us anything about how insiders feel about the current share price.

In the last year Build-A-Bear Workshop insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.8% of Build-A-Bear Workshop shares, worth about US$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

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

An insider sold Build-A-Bear Workshop shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Build-A-Bear Workshop makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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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 of direct interests only, but not derivative transactions or indirect interests.

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.