Build-A-Bear share price targets new 6-year high

The Build-A-Bear share price shows no signs of dropping out just yet. Additionally, a close above $ 20.00 could put BBW on track to its 2015 high.

Build-A-Bear Workshop Inc (BBW: NYSE) closed slightly lower at $ 18.34, down $ -0.07 (-0.38%).

At the low of the 2020 collapse, BBW stocks were changing hands at $ 1.01. Remarkably, fifteen months and +1 170% later, I am arguing for the Build-A-Bear share price to reach $ 23.00. It might sound crazy, but it’s 2021 and craziness is happening everywhere.

The struggling teddy bear retailer got off to a good start in the year, and in January joined the rally in meme stocks, jumping 25% following a resumption of mentions on street walls.

However, a large portion of BBW’s gains have taken place in the past five weeks. Since May 10, Build-A-Bear stock has gained 145%, climbing nearly $ 11, from $ 7.55 to $ 18.34.

BBW short interest

First, there is reasonable short-term interest in the stock. But at 6.08% of the free float, it should not be seen as a prime target in the short term.

In addition, the Days To Cover amounts to 1.7. Which is again relevant but not overly encouraging.

Additionally, open interest on the option does not indicate an increase in call option purchases typical of a Reddit-fueled gamma-squeeze.

That being said, the price action looks great. BBW consolidates in a wide channel between $ 15.90 and $ 20.00. Notably, price occupied the lower end of this channel last week and has since performed strongly and is 15% higher.

This leads me to conclude that BBW will now target the high end of the chain at $ 20.00. If the price breaks this hurdle, a logical destination would be the 2015 high at $ 23.00.

The bullish thesis will remain valid as long as BBW holds the horizontal channel. Therefore, a close below $ 15.90 would negate my view.

Don’t miss a beat! Follow us on Telegram and Twitter.

Build-A-Bear share price

BBW

Follow Elliott on Twitter.




Source link

About Mildred B.

Check Also

Nifty: F&O: bitter bulls and bears; Sharp drop in VIX strengthens bulls

Nifty opened positively above the 17,800 level on Thursday, but subsequently became consolidated and remained …