Build-A-Bear Workshop (NYSE:BBW) Lowered to Strong Sell Rating by Zacks Research

Zacks Research lowered shares of Build-A-Bear Workshop (NYSE:BBW) from a hold rating to a strong sell rating in a research report released on Monday morning,Zacks reports.

BBW has been the topic of several other reports. DA Davidson reduced their target price on Build-A-Bear Workshop from $60.00 to $37.00 and set a “buy” rating on the stock in a report on Friday, August 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Build-A-Bear Workshop in a research note on Monday, August 17th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Build-A-Bear Workshop currently has an average rating of “Hold” and an average price target of $53.50.

Build-A-Bear Workshop Stock Performance

NYSE BBW opened at $30.45 on Monday. The firm has a 50-day moving average of $34.23 and a 200-day moving average of $37.58. The stock has a market cap of $381.84 million, a PE ratio of 7.56 and a beta of 1.05. Build-A-Bear Workshop has a 52-week low of $27.50 and a 52-week high of $75.85.

Build-A-Bear Workshop (NYSE:BBW) last released its quarterly earnings results on Thursday, August 27th. The specialty retailer reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.64 by $0.06. The business had revenue of $115.29 million during the quarter, compared to the consensus estimate of $120.81 million. Build-A-Bear Workshop had a return on equity of 29.85% and a net margin of 9.96%. As a group, analysts predict that Build-A-Bear Workshop will post 3.53 EPS for the current fiscal year.

Build-A-Bear Workshop Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Thursday, June 25th were issued a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Thursday, June 25th. Build-A-Bear Workshop’s payout ratio is 22.83%.

Insider Activity at Build-A-Bear Workshop

In other Build-A-Bear Workshop news, Director Sharon Price John sold 6,818 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $40.03, for a total transaction of $272,924.54. Following the completion of the transaction, the director owned 181,653 shares in the company, valued at approximately $7,271,569.59. This trade represents a 3.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director George Carrara sold 3,000 shares of the business’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $34.52, for a total transaction of $103,560.00. Following the completion of the transaction, the director owned 11,277 shares in the company, valued at approximately $389,282.04. The trade was a 21.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 4.00% of the company’s stock.

Institutional Investors Weigh In On Build-A-Bear Workshop

A number of large investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in Build-A-Bear Workshop in the 2nd quarter valued at about $30,481,000. Paradigm Capital Management Inc. NY bought a new position in Build-A-Bear Workshop in the second quarter worth approximately $30,136,000. De Lisle Partners LLP bought a new position in Build-A-Bear Workshop in the second quarter worth approximately $23,466,000. California State Teachers Retirement System grew its stake in Build-A-Bear Workshop by 61,511.8% in the second quarter. California State Teachers Retirement System now owns 414,031 shares of the specialty retailer’s stock valued at $13,526,000 after acquiring an additional 413,359 shares during the period. Finally, Fuller & Thaler Asset Management Inc. grew its stake in Build-A-Bear Workshop by 177.8% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 612,577 shares of the specialty retailer’s stock valued at $37,533,000 after acquiring an additional 392,039 shares during the period. 79.30% of the stock is currently owned by institutional investors and hedge funds.

Build-A-Bear Workshop News Roundup

Here are the key news stories impacting Build-A-Bear Workshop this week:

• Positive Sentiment: Northland Securities initiated a fiscal 2028 EPS estimate of $3.84, above the current full-year consensus estimate of $3.53, suggesting longer-term earnings potential if growth recovers.
• Positive Sentiment: In its latest reported quarter, Build-A-Bear earned $0.70 per share, exceeding the $0.64 analyst consensus. However, revenue was below expectations, limiting the bullish impact.
• Neutral Sentiment: Rosen Law Firm announced an investigation into potential securities claims alleging that Build-A-Bear may have provided materially misleading business information. The announcement is an allegation and does not establish wrongdoing, but it introduces legal and reputational uncertainty. Rosen Law Firm investor investigation
• Negative Sentiment: Zacks Research downgraded Build-A-Bear from “hold” to “strong sell,” a clear negative signal for investor sentiment.
• Negative Sentiment: Northland Securities sharply reduced its Q3 2027 EPS forecast to $0.50 from $0.79 and its Q4 2027 forecast to $1.08 from $1.45, pointing to weaker anticipated profitability in the near term.
• Negative Sentiment: Small Cap Consu also cut its Q3 2027 EPS estimate, to $0.66 from $0.87, reinforcing concerns about slowing earnings momentum.
• Negative Sentiment: Recent commentary highlights weak earnings, questions about strategy, and the need for customer traffic and product momentum to recover. Concerns about Build-A-Bear strategy Build-A-Bear traffic and product momentum analysis

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc operates a specialty retail business focused on interactive “workshop” experiences that allow customers to create customized stuffed animals. Through its in-store and online platforms, the company offers a wide range of plush toys, apparel, accessories and sound modules, enabling guests to personalize each creation. In addition to its core bear products, Build-A-Bear has expanded its portfolio to include licensed characters from leading entertainment and media franchises.

Founded in 1997 by Maxine Clark and headquartered in St.