Shares of Build-A-Bear Workshop (BBW -0.37%) jumped 10.8% in October, according to data provided by S&P Global Market Intelligence. On one hand, this is a small-cap stock with low trading volume, which means that even subtle shifts in investor sentiment can make big waves with the stock price. Therefore, it's important to not read too much into the move. But there are some positive things happening with the business.

For context, Build-A-Bear's financial results had steadily declined for roughly a decade leading up to the pandemic. Then, seemingly out of nowhere, revenue and earnings per share skyrocketed to all-time highs. The question on every investor's mind is consequently, "Are these results sustainable?"

I see reason for optimism with a recent hire for Build-A-Bear. On Oct. 29, the company hired Kim Utlaut as its chief brand officer. Utlaut has 20 years experience in senior leadership at Coca-Cola. It's a big hire and the company made the move to try to sustain and build upon record results.

But to be clear, this hire for Build-A-Bear came late in the month, after the stock had made most of its gains. For this reason, I believe it's safer to say that investor sentiment was likely only modestly higher during October, perhaps boosted by what happened in September.

What's been happening at Build-A-Bear?

In September, Build-A-Bear announced a pair of moves that excited investors. First, the company's management authorized a $100 million stock buyback plan. For perspective, the stock has a market cap of only about $500 million. So this is a massive buyback plan and goes along with management's efforts in recent years. Its share count is down 16% in the last three years.

BBW Average Diluted Shares Outstanding (Quarterly) data by YCharts

Build-A-Bear also declared its next quarterly dividend. And these September moves were exciting for investors and carried over into October.

Should investors worry about insiders selling?

The excitement was apparently enough to mitigate concerns regarding insider selling at Build-A-Bear. On Oct. 8, President and CEO Sharon Price John sold over 48,000 shares. Granted, the transaction was valued at $1.7 million, which is small in the grand scheme of things. That said, it was 10% of her stake in the company, which is meaningful.

In short, investors could question why an insider would be selling shares of Build-A-Bear right now.

When it comes to insider transactions, it's good to be aware of when it's happening. But it's usually a good idea to not read too much into it. There are many legitimate reasons for a CEO to need cash. And given Build-A-Bear's big successes in recent years, it's fair to allow management to reap some of the rewards.

For now, investors need to monitor whether Build-A-Bear can keep building upon record financial results. The company is expected to report financial results later this month.