DA Davidson Cuts Build-A-Bear Workshop (NYSE:BBW) Price Target to $37.00

Key Points

• DA Davidson cut Build-A-Bear Workshop’s price target from $60 to $37 while maintaining a “buy” rating, implying about 27% upside from the stock’s $29.04 price. The broader analyst consensus remains “Moderate Buy,” with a $62.33 target.
• Build-A-Bear’s quarterly EPS of $0.70 beat estimates of $0.64, but revenue fell 7.2% year over year to $115.3 million and missed expectations. The company also lowered fiscal 2026 revenue guidance to $500 million-$525 million.
• Investor concerns intensified after the company cited weak traffic and dismissed its chief growth officer, while shares remained near their 12-month low. Two directors also sold shares, though institutional investors own 79.3% of the stock.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) had its price target lowered by analysts at DA Davidson from $60.00 to $37.00 in a research report issued on Friday,Benzinga reports. The firm presently has a "buy" rating on the specialty retailer's stock. DA Davidson's target price suggests a potential upside of 27.41% from the company's current price.

Separately, Weiss Ratings restated a "hold (c)" rating on shares of Build-A-Bear Workshop in a research report on Monday, August 17th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Build-A-Bear Workshop has a consensus rating of "Moderate Buy" and a consensus target price of $62.33.

Build-A-Bear Workshop Trading Up 2.1%

Shares of NYSE:BBW traded up $0.60 during midday trading on Friday, hitting $29.04. 547,495 shares of the stock were exchanged, compared to its average volume of 418,950. Build-A-Bear Workshop has a twelve month low of $27.50 and a twelve month high of $75.85. The company has a 50 day moving average price of $34.33 and a 200-day moving average price of $38.05. The stock has a market cap of $364.16 million, a P/E ratio of 6.80 and a beta of 1.10.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last announced its earnings results on Thursday, August 27th. The specialty retailer reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.64 by $0.06. Build-A-Bear Workshop had a net margin of 10.48% and a return on equity of 32.15%. The company had revenue of $115.29 million during the quarter, compared to analysts' expectations of $120.81 million. On average, equities research analysts expect that Build-A-Bear Workshop will post 4.04 earnings per share for the current year.

Insider Activity

In other news, Director George Carrara sold 3,000 shares of the business's stock in a transaction that occurred 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 owned 11,277 shares of the company's stock, valued at $389,282.04. The trade was a 21.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Sharon Price John sold 6,818 shares of the business'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 directly owned 181,653 shares of the company's stock, valued at approximately $7,271,569.59. This represents a 3.62% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.00% of the stock is owned by company insiders.

Institutional Trading of Build-A-Bear Workshop

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Kestra Advisory Services LLC purchased a new position in shares of Build-A-Bear Workshop during the 4th quarter worth $28,000. IFP Advisors Inc increased its stake in Build-A-Bear Workshop by 68.1% in the third quarter. IFP Advisors Inc now owns 501 shares of the specialty retailer's stock valued at $33,000 after purchasing an additional 203 shares during the last quarter. Larson Financial Group LLC lifted its position 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 buying an additional 444 shares during the period. Canada Pension Plan Investment Board acquired a new stake in Build-A-Bear Workshop in the 2nd quarter worth about $57,000. Finally, State of Wyoming acquired a new stake in Build-A-Bear Workshop in the 2nd quarter worth about $59,000. 79.30% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Build-A-Bear Workshop

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

• Positive Sentiment: Fiscal second-quarter EPS was $0.70, above the roughly $0.64 analyst consensus, although it declined from $0.94 a year earlier. The company also returned $22.7 million to shareholders through share repurchases during the first half of fiscal 2026. Build-A-Bear Workshop Reports Fiscal Second Quarter 2026 Results
• Neutral Sentiment: Second-quarter revenue was $115.3 million, compared with $124.2 million a year earlier. Pre-tax income fell to $11.6 million from $15.3 million, highlighting pressure on sales and profitability even though EPS topped estimates. Build-A-Bear Workshop Earnings Report
• Negative Sentiment: Build-A-Bear cut its fiscal-year 2026 revenue forecast to $500 million-$525 million, down from its prior $530 million-$550 million range and below the approximately $535.6 million analyst estimate. This was the company’s second revenue-guidance reduction of the year. Build-A-Bear Cuts Outlook, Fires Exec After Sales Fall
• Negative Sentiment: Revenue missed expectations by roughly $6 million and declined about 7.2% year over year, while management cited weak traffic. The sales shortfall and reduced outlook raised concerns about ongoing demand for the retailer’s customized stuffed animals. Build-A-Bear Stock Sinks as Weak Traffic, Guidance Cut Hit Sentiment
• Negative Sentiment: The company also fired its chief growth officer, adding to investor concerns about its growth strategy and contributing to the unusually severe selloff in BBW. Build-A-Bear Shares on Weak Revenue Outlook

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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