DA Davidson Has Strong Forecast for BBW FY2026 Earnings

Key Points

• DA Davidson raised its FY2026 earnings per share (EPS) estimate for Build-A-Bear Workshop from $3.97 to $4.11, maintaining a "Buy" rating with a price target of $64.00.
• Build-A-Bear Workshop reported a net margin of 10.91% and a return on equity of 40.74% in its latest quarterly results, beating analysts' expectations with $1.17 EPS on revenue of $128.40 million.
• The company recently declared a quarterly dividend of $0.22, reflecting an annualized dividend yield of 1.7% and a payout ratio of 21.15%.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Free Report) - Equities research analysts at DA Davidson lifted their FY2026 EPS estimates for Build-A-Bear Workshop in a research note issued to investors on Tuesday, August 5th. DA Davidson analyst K. Cox now forecasts that the specialty retailer will post earnings of $4.11 per share for the year, up from their prior estimate of $3.97. DA Davidson has a "Buy" rating and a $64.00 price target on the stock. The consensus estimate for Build-A-Bear Workshop's current full-year earnings is $3.71 per share.

Several other research analysts have also recently issued reports on the stock. Piper Sandler upped their target price on shares of Build-A-Bear Workshop from $35.00 to $39.00 and gave the company an "overweight" rating in a report on Thursday, May 15th. Wall Street Zen upgraded shares of Build-A-Bear Workshop from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 5th.

Build-A-Bear Workshop Stock Down 0.1%

Shares of BBW opened at $51.25 on Thursday. Build-A-Bear Workshop has a fifty-two week low of $24.40 and a fifty-two week high of $55.56. The firm's 50 day moving average price is $51.22 and its 200 day moving average price is $42.93. The company has a market cap of $677.05 million, a P/E ratio of 12.30 and a beta of 0.70.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last released its quarterly earnings results on Thursday, May 29th. The specialty retailer reported $1.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.31. The business had revenue of $128.40 million for the quarter, compared to the consensus estimate of $118.90 million. Build-A-Bear Workshop had a net margin of 10.91% and a return on equity of 40.74%. During the same period in the previous year, the firm earned $0.82 EPS.

Build-A-Bear Workshop Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, July 10th. Investors of record on Thursday, June 26th were paid a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Thursday, June 26th. Build-A-Bear Workshop's payout ratio is 21.15%.

Insider Activity at Build-A-Bear Workshop

In other Build-A-Bear Workshop news, CEO Sharon Price John sold 31,250 shares of the business's stock in a transaction on 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 completion of the sale, the chief executive officer owned 291,305 shares in the company, valued at $13,321,377.65. The trade was a 9.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Craig Leavitt sold 8,250 shares of the business's stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $50.21, for a total transaction of $414,232.50. Following the sale, the director owned 72,392 shares of the company's stock, valued at approximately $3,634,802.32. The trade was a 10.23% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 48,248 shares of company stock worth $2,276,383 in the last ninety days. 5.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Build-A-Bear Workshop

Several institutional investors have recently modified their holdings of the company. LPL Financial LLC acquired a new stake in Build-A-Bear Workshop in the fourth quarter worth about $267,000. JPMorgan Chase & Co. increased its holdings in Build-A-Bear Workshop by 41.8% in the fourth quarter. JPMorgan Chase & Co. now owns 35,363 shares of the specialty retailer's stock worth $1,628,000 after buying an additional 10,428 shares during the last quarter. Trexquant Investment LP acquired a new position in Build-A-Bear Workshop in the fourth quarter worth approximately $1,374,000. ExodusPoint Capital Management LP acquired a new position in Build-A-Bear Workshop in the fourth quarter worth approximately $455,000. Finally, Wells Fargo & Company MN boosted its position in Build-A-Bear Workshop by 48.6% during the fourth quarter. Wells Fargo & Company MN now owns 5,835 shares of the specialty retailer's stock worth $269,000 after purchasing an additional 1,909 shares during the period. Institutional investors 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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