Build-A-Bear Workshop (NYSE:BBW) Shares Down 4.8% - Time to Sell?

Key Points

• Shares of Build-A-Bear Workshop (NYSE:BBW) fell 4.8% to about $39.09 mid-day on Wednesday, trading roughly 79,406 shares—around 80% below its average daily volume.
• Analysts hold a Moderate Buy consensus with an average price target of $64.75 (five Buys, one Hold), implying significant upside from current levels despite some recent target cuts.
• The company slightly missed quarterly estimates (EPS $1.26 vs $1.27; revenue $154.51M vs $155.71M) but showed strong profitability (ROE 34.44%) and raised its quarterly dividend to $0.23 (annualized yield ~2.3%).

Shares of Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report) were down 4.8% during mid-day trading on Wednesday . The stock traded as low as $39.44 and last traded at $39.0950. Approximately 79,406 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 404,015 shares. The stock had previously closed at $41.06.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on BBW. Weiss Ratings reissued a "buy (b)" rating on shares of Build-A-Bear Workshop in a report on Tuesday, December 23rd. Zacks Research raised shares of Build-A-Bear Workshop from a "strong sell" rating to a "hold" rating in a research report on Tuesday, March 3rd. Wall Street Zen cut shares of Build-A-Bear Workshop from a "buy" rating to a "hold" rating in a research report on Saturday, December 6th. CJS Securities assumed coverage on Build-A-Bear Workshop in a research report on Wednesday, December 10th. They set a "market outperform" rating and a $70.00 price objective for the company. Finally, DA Davidson decreased their target price on Build-A-Bear Workshop from $85.00 to $70.00 and set a "buy" rating on the stock in a research report on Friday, December 5th. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, Build-A-Bear Workshop currently has a consensus rating of "Moderate Buy" and an average target price of $64.75.

Build-A-Bear Workshop Stock Down 3.2%

The business's 50 day simple moving average is $52.44 and its two-hundred day simple moving average is $56.56. The stock has a market cap of $514.59 million, a P/E ratio of 9.95 and a beta of 1.08.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last issued its quarterly earnings data on Thursday, March 12th. The specialty retailer reported $1.26 earnings per share for the quarter, missing analysts' consensus estimates of $1.27 by ($0.01). The firm had revenue of $154.51 million for the quarter, compared to the consensus estimate of $155.71 million. Build-A-Bear Workshop had a return on equity of 34.44% and a net margin of 9.85%. As a group, research analysts forecast that Build-A-Bear Workshop, Inc. will post 3.71 earnings per share for the current fiscal year.

Build-A-Bear Workshop Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Thursday, March 26th will be given a dividend of $0.23 per share. The ex-dividend date is Thursday, March 26th. This represents a $0.92 annualized dividend and a yield of 2.3%. This is a boost from Build-A-Bear Workshop's previous quarterly dividend of $0.22. Build-A-Bear Workshop's dividend payout ratio is 23.06%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of BBW. AQR Capital Management LLC lifted its stake in shares of Build-A-Bear Workshop by 10.3% in the first quarter. AQR Capital Management LLC now owns 37,339 shares of the specialty retailer's stock valued at $1,388,000 after buying an additional 3,490 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Build-A-Bear Workshop by 6.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,533 shares of the specialty retailer's stock valued at $280,000 after acquiring an additional 456 shares in the last quarter. Jones Financial Companies Lllp bought a new stake in shares of Build-A-Bear Workshop in the 1st quarter worth $199,000. Caxton Associates LLP bought a new position in shares of Build-A-Bear Workshop in the first quarter valued at approximately $267,000. Finally, Geode Capital Management LLC lifted its holdings in Build-A-Bear Workshop by 2.4% during the second quarter. Geode Capital Management LLC now owns 318,688 shares of the specialty retailer's stock worth $16,434,000 after acquiring an additional 7,428 shares during the period. 79.30% of the stock is owned by institutional investors.

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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