Build-A-Bear Workshop, Inc. (NYSE:BBW) Raises Dividend to $0.23 Per Share

Key Points

• Build-A-Bear raised its quarterly dividend to $0.23 per share (a 4.5% increase from $0.22), payable April 9 to shareholders of record on March 26 with a yield of about 2.1% (ex-dividend date March 26).
• The dividend appears well-covered: the company’s current payout ratio is ~20.6%, and analysts project $3.88 in EPS next year, implying an expected payout ratio near 22.7%—supporting sustainability of the $0.88 annual dividend.
• In the most recent quarter Build-A-Bear reported $1.26 EPS (missing estimates by $0.01) and $154.5M revenue (slightly below expectations); the stock trades around $43.48 with a market cap of ~$563M and a P/E of 10.0 (52-week range $32.55–$75.85).

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report) declared a quarterly dividend on Wednesday, March 11th. Shareholders of record on Thursday, March 26th will be given a dividend of 0.23 per share by the specialty retailer on Thursday, April 9th. This represents a c) dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, March 26th. This is a 4.5% increase from Build-A-Bear Workshop's previous quarterly dividend of $0.22.

Build-A-Bear Workshop has a dividend payout ratio of 20.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Build-A-Bear Workshop to earn $3.88 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 22.7%.

Build-A-Bear Workshop Stock Performance

NYSE BBW opened at $43.48 on Thursday. Build-A-Bear Workshop has a fifty-two week low of $32.55 and a fifty-two week high of $75.85. The stock has a market cap of $563.10 million, a P/E ratio of 10.00 and a beta of 1.08. The stock has a 50 day simple moving average of $56.83 and a two-hundred day simple moving average of $57.85.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last announced its quarterly earnings results on Thursday, March 12th. The specialty retailer reported $1.26 EPS for the quarter, missing analysts' consensus estimates of $1.27 by ($0.01). Build-A-Bear Workshop had a return on equity of 38.43% and a net margin of 10.93%.The business had revenue of $154.51 million during the quarter, compared to analysts' expectations of $155.71 million. Sell-side analysts predict that Build-A-Bear Workshop will post 3.71 earnings per share for the current year.

Institutional Trading of Build-A-Bear Workshop

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Pillsbury Lake Capital LLC purchased a new position in Build-A-Bear Workshop during the fourth quarter valued at $12,887,000. Fuller & Thaler Asset Management Inc. increased its holdings in shares of Build-A-Bear Workshop by 177.8% during 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 in the last quarter. XTX Topco Ltd bought a new position in shares of Build-A-Bear Workshop during the fourth quarter valued at $333,000. Uniplan Investment Counsel Inc. raised its position in shares of Build-A-Bear Workshop by 15.0% in the 4th quarter. Uniplan Investment Counsel Inc. now owns 109,254 shares of the specialty retailer's stock worth $6,694,000 after purchasing an additional 14,213 shares during the last quarter. Finally, Susquehanna Portfolio Strategies LLC bought a new position in Build-A-Bear Workshop in the 4th quarter worth about $918,000. Hedge funds and other institutional investors own 79.30% of the company's stock.

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.

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