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

Key Points

• Zacks Research downgraded Build-A-Bear Workshop to “strong sell” from “hold,” although the broader analyst consensus remains “hold,” with a consensus price target of $53.50.
• Build-A-Bear shares opened at $30.45, near their 12-month low of $27.50 and well below the 12-month high of $75.85. The stock has a market capitalization of approximately $381.8 million and a price-to-earnings ratio of 7.56.
• The company exceeded quarterly earnings expectations with EPS of $0.70 versus $0.64 projected, but revenue of $115.3 million fell short of the $120.8 million consensus estimate; two directors also recently sold shares.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday, Zacks reports.

A number of other equities analysts have also recently commented on BBW. Weiss Ratings reiterated a "hold (c)" rating on shares of Build-A-Bear Workshop in a report on Monday, August 17th. DA Davidson decreased their price target 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. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Build-A-Bear Workshop presently has an average rating of "Hold" and a consensus price target of $53.50.

Build-A-Bear Workshop Trading Up 0.6%

Shares of NYSE:BBW opened at $30.45 on Monday. Build-A-Bear Workshop has a 12 month low of $27.50 and a 12 month high of $75.85. The company has a 50-day moving average price of $34.23 and a 200 day moving average price of $37.58. The company has a market cap of $381.84 million, a price-to-earnings ratio of 7.56 and a beta of 1.05.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The specialty retailer reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.06. Build-A-Bear Workshop had a return on equity of 29.85% and a net margin of 9.96%.The company had revenue of $115.29 million for the quarter, compared to analysts' expectations of $120.81 million. As a group, equities analysts forecast that Build-A-Bear Workshop will post 3.53 EPS for the current year.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of BBW. Kestra Advisory Services LLC acquired a new stake in shares of Build-A-Bear Workshop during the fourth quarter valued at about $28,000. IFP Advisors Inc boosted its position in shares of Build-A-Bear Workshop by 68.1% during the 3rd 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 period. Larson Financial Group LLC increased its holdings in Build-A-Bear Workshop by 453.1% in the 3rd quarter. Larson Financial Group LLC now owns 542 shares of the specialty retailer's stock valued at $35,000 after purchasing an additional 444 shares during the last quarter. Wexford Capital LP purchased a new stake in Build-A-Bear Workshop in the third quarter valued at approximately $69,000. Finally, Clearstead Advisors LLC raised its position in Build-A-Bear Workshop by 160.6% in the fourth quarter. Clearstead Advisors LLC now owns 1,079 shares of the specialty retailer's stock valued at $66,000 after purchasing an additional 665 shares during the period. Hedge funds and other institutional investors own 79.30% of the company's stock.

More Build-A-Bear Workshop News

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.

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