Q3 EPS Estimates for BBW Decreased by Northland Securities

Build-A-Bear Workshop, Inc. (NYSE:BBW) – Analysts at Northland Securities lowered their Q3 2027 earnings per share estimates for Build-A-Bear Workshop in a note issued to investors on Monday, August 31st. Northland Securities analyst G. Gibas now forecasts that the specialty retailer will post earnings per share of $0.50 for the quarter, down from their previous forecast of $0.79. The consensus estimate for Build-A-Bear Workshop’s current full-year earnings is $3.53 per share. Northland Securities also issued estimates for Build-A-Bear Workshop’s Q4 2027 earnings at $1.08 EPS.

Several other analysts also recently weighed in on the stock. Zacks Research downgraded shares of Build-A-Bear Workshop from a “hold” rating to a “strong sell” rating in a report on Monday. DA Davidson cut their price target on shares of Build-A-Bear Workshop from $60.00 to $37.00 and set a “buy” rating for the company in a report on Friday, August 28th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Build-A-Bear Workshop in a research report on Monday, August 17th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $53.50.

Build-A-Bear Workshop Stock Performance

Shares of Build-A-Bear Workshop stock opened at $30.45 on Wednesday. Build-A-Bear Workshop has a one year low of $27.50 and a one year high of $75.85. The company has a market cap of $381.84 million, a P/E ratio of 7.56 and a beta of 1.05. The firm has a fifty day moving average of $34.23 and a two-hundred day moving average of $37.58.

Build-A-Bear Workshop (NYSE:BBW) last posted its quarterly earnings data on Thursday, August 27th. The specialty retailer reported $0.70 earnings per share for the quarter, beating analysts’ consensus estimates of $0.64 by $0.06. The firm had revenue of $115.29 million for the quarter, compared to analyst estimates of $120.81 million. Build-A-Bear Workshop had a net margin of 9.96% and a return on equity of 29.85%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Kestra Advisory Services LLC purchased a new stake in shares of Build-A-Bear Workshop during the 4th quarter worth approximately $28,000. IFP Advisors Inc raised its holdings in Build-A-Bear Workshop by 68.1% during the third quarter. IFP Advisors Inc now owns 501 shares of the specialty retailer’s stock worth $33,000 after purchasing an additional 203 shares during the last quarter. Larson Financial Group LLC raised its holdings in Build-A-Bear Workshop by 453.1% during the third quarter. Larson Financial Group LLC now owns 542 shares of the specialty retailer’s stock worth $35,000 after purchasing an additional 444 shares during the last quarter. Canada Pension Plan Investment Board purchased a new stake in Build-A-Bear Workshop during the second quarter worth $57,000. Finally, State of Wyoming purchased a new stake in Build-A-Bear Workshop during the second quarter worth $59,000. 79.30% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Sharon Price John sold 6,818 shares of the firm’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $40.03, for a total value of $272,924.54. Following the completion of the sale, the director owned 181,653 shares in the company, valued at $7,271,569.59. This trade represents a 3.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 dated Friday, June 5th. The stock was sold at an average price of $34.52, for a total transaction of $103,560.00. Following the sale, the director directly owned 11,277 shares in the company, valued at approximately $389,282.04. This represents a 21.01% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 4.00% of the company’s stock.

Build-A-Bear Workshop Dividend Announcement

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

Build-A-Bear Workshop News Summary

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

• Positive Sentiment: Build-A-Bear’s latest quarterly EPS of $0.70 exceeded the $0.64 analyst consensus, providing evidence that the company continues to control costs and generate solid profitability. However, quarterly revenue of $115.3 million fell short of the $120.8 million estimate.
• Neutral Sentiment: Analysts continue to update their earnings outlook for BBW. Northland Securities projects fiscal 2028 EPS of $3.84, slightly below the current full-year consensus estimate of $3.96, suggesting expectations for growth remain restrained. Northland Securities earnings estimates
• Negative Sentiment: Small Cap Consu reduced its fiscal third-quarter 2027 EPS forecast to $0.66 from $0.87. The cut reinforces concerns that weaker traffic or product momentum could weigh on upcoming results. Small Cap Consu earnings estimate revision
• Negative Sentiment: Commentary from investor Michael Burry reportedly highlighted BBW’s weak earnings and raised questions about the company’s strategy, potentially increasing scrutiny of management’s approach to growth. Burry comments on Build-A-Bear strategy
• Negative Sentiment: Rosen Law Firm announced an investigation into potential securities claims, alleging that Build-A-Bear may have issued materially misleading business information. The investigation does not establish wrongdoing, but it creates legal and reputational risk and may weigh on the shares. Rosen Law Firm Build-A-Bear investigation

Build-A-Bear Workshop Company Profile

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.