DA Davidson Has Positive Forecast for BBW FY2027 Earnings

Key Points

• DA Davidson has raised its FY2027 earnings estimate for Build-A-Bear Workshop to $4.67 per share, up from the previous forecast of $4.59, maintaining a "Buy" rating with a price target of $85.00.
• In the latest quarterly results, Build-A-Bear reported earnings of $0.94 per share, exceeding analysts' expectations, with revenue hitting $124.25 million.
• The company recently declared a quarterly dividend of $0.22 per share, representing an annual yield of 1.5% with a payout ratio of 19.73%.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Free Report) - Stock analysts at DA Davidson increased their FY2027 earnings estimates for shares of Build-A-Bear Workshop in a research note issued on Friday, August 29th. DA Davidson analyst K. Cox now expects that the specialty retailer will post earnings of $4.67 per share for the year, up from their prior forecast of $4.59. DA Davidson has a "Buy" rating and a $85.00 price objective on the stock. The consensus estimate for Build-A-Bear Workshop's current full-year earnings is $3.71 per share.

Other research analysts have also issued reports about the stock. Piper Sandler boosted their price target on shares of Build-A-Bear Workshop from $35.00 to $39.00 and gave the company an "overweight" rating in a research report on Thursday, May 15th. Northland Securities boosted their price target on shares of Build-A-Bear Workshop from $60.00 to $80.00 and gave the company an "outperform" rating in a research report on Friday. Finally, Wall Street Zen lowered shares of Build-A-Bear Workshop from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 23rd. Three investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $68.00.

Build-A-Bear Workshop Price Performance

BBW opened at $60.54 on Monday. The company has a fifty day moving average price of $53.29 and a 200-day moving average price of $44.80. The firm has a market capitalization of $799.75 million, a P/E ratio of 13.57 and a beta of 0.72. Build-A-Bear Workshop has a one year low of $29.32 and a one year high of $70.01.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last released its quarterly earnings results on Thursday, August 28th. The specialty retailer reported $0.94 EPS for the quarter, beating analysts' consensus estimates of $0.67 by $0.27. The firm had revenue of $124.25 million during the quarter, compared to analyst estimates of $116.19 million. Build-A-Bear Workshop had a net margin of 11.34% and a return on equity of 42.37%. During the same period in the previous year, the business earned $0.64 EPS.

Build-A-Bear Workshop Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 10th. Investors of record on Thursday, June 26th were given a $0.22 dividend. The ex-dividend date was Thursday, June 26th. This represents a $0.88 annualized dividend and a yield of 1.5%. Build-A-Bear Workshop's payout ratio is 19.73%.

Insider Activity at Build-A-Bear Workshop

In other Build-A-Bear Workshop news, Director Lesli Rotenberg sold 1,755 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $53.52, for a total transaction of $93,927.60. Following the completion of the sale, the director directly owned 11,825 shares in the company, valued at $632,874. This represents a 12.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Sharon Price John sold 31,250 shares of the company's stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $45.73, for a total transaction of $1,429,062.50. Following the sale, the chief executive officer owned 291,305 shares of the company's stock, valued at approximately $13,321,377.65. The trade was a 9.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 48,248 shares of company stock valued at $2,276,383 over the last ninety days. 5.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Build-A-Bear Workshop

Hedge funds and other institutional investors have recently modified their holdings of the company. Quarry LP bought a new position in Build-A-Bear Workshop in the first quarter worth about $28,000. AlphaQuest LLC raised its stake in Build-A-Bear Workshop by 106.1% in the first quarter. AlphaQuest LLC now owns 814 shares of the specialty retailer's stock worth $30,000 after buying an additional 419 shares in the last quarter. MTM Investment Management LLC bought a new position in Build-A-Bear Workshop in the second quarter worth about $52,000. Canada Pension Plan Investment Board bought a new position in Build-A-Bear Workshop in the second quarter worth about $57,000. Finally, Ameritas Investment Partners Inc. raised its stake in Build-A-Bear Workshop by 19.4% in 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 in the last quarter. 79.30% of the stock is owned by institutional investors.

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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