Build-A-Bear Workshop (NYSE:BBW) Downgraded to Hold Rating by Zacks Research

Key Points

• Build-A-Bear Workshop has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, indicating a more cautious outlook from analysts.
• Despite the downgrade, DA Davidson and Northland Securities have raised their price targets for the company, now set at $85.00 and $80.00, respectively.
• The company reported a strong quarterly performance, with earnings of $0.94 per share, surpassing analysts' expectations of $0.67, and total revenue of $124.25 million.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research analysts have also weighed in on the company. Wall Street Zen lowered Build-A-Bear Workshop from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. DA Davidson increased their price objective on Build-A-Bear Workshop from $64.00 to $85.00 and gave the company a "buy" rating in a report on Friday, August 29th. Northland Securities increased their price objective on Build-A-Bear Workshop from $60.00 to $80.00 and gave the company an "outperform" rating in a report on Friday, August 29th. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Build-A-Bear Workshop in a report on Saturday, September 27th. Four analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $68.00.

Build-A-Bear Workshop Trading Down 3.4%

Shares of Build-A-Bear Workshop stock opened at $57.97 on Monday. The firm's 50 day simple moving average is $61.94 and its two-hundred day simple moving average is $50.32. The firm has a market capitalization of $761.08 million, a price-to-earnings ratio of 13.00 and a beta of 0.69. Build-A-Bear Workshop has a 12-month low of $32.55 and a 12-month high of $75.85.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last announced its quarterly earnings data on Thursday, August 28th. The specialty retailer reported $0.94 earnings per share for the quarter, beating analysts' consensus estimates of $0.67 by $0.27. Build-A-Bear Workshop had a net margin of 11.34% and a return on equity of 41.14%. The firm had revenue of $124.25 million for the quarter, compared to analyst estimates of $116.19 million. During the same period in the previous year, the company earned $0.64 earnings per share. On average, sell-side analysts predict that Build-A-Bear Workshop will post 3.71 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Lesli Rotenberg sold 1,000 shares of the company's stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $59.98, for a total value of $59,980.00. Following the completion of the transaction, the director owned 10,825 shares of the company's stock, valued at approximately $649,283.50. This represents a 8.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Sharon Price John sold 30,000 shares of the company's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $73.25, for a total value of $2,197,500.00. Following the completion of the transaction, the chief executive officer directly owned 261,305 shares of the company's stock, valued at $19,140,591.25. The trade was a 10.30% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 60,387 shares of company stock worth $4,356,381. 5.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Build-A-Bear Workshop

A number of large investors have recently bought and sold shares of the business. Ameritas Investment Partners Inc. boosted its stake in Build-A-Bear Workshop by 19.4% during the second quarter. Ameritas Investment Partners Inc. now owns 1,270 shares of the specialty retailer's stock worth $65,000 after buying an additional 206 shares during the last quarter. OneDigital Investment Advisors LLC boosted its stake in Build-A-Bear Workshop by 2.8% during the first quarter. OneDigital Investment Advisors LLC now owns 10,486 shares of the specialty retailer's stock worth $390,000 after buying an additional 289 shares during the last quarter. SummerHaven Investment Management LLC boosted its stake in Build-A-Bear Workshop by 1.1% during the first quarter. SummerHaven Investment Management LLC now owns 31,861 shares of the specialty retailer's stock worth $1,184,000 after buying an additional 340 shares during the last quarter. SkyView Investment Advisors LLC boosted its stake in Build-A-Bear Workshop by 2.1% during the second quarter. SkyView Investment Advisors LLC now owns 17,065 shares of the specialty retailer's stock worth $915,000 after buying an additional 356 shares during the last quarter. Finally, Rafferty Asset Management LLC boosted its stake in Build-A-Bear Workshop by 6.0% during the second quarter. Rafferty Asset Management LLC now owns 7,284 shares of the specialty retailer's stock worth $376,000 after buying an additional 414 shares during the last quarter. Institutional investors and hedge funds own 79.30% of the company's stock.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear.

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