DA Davidson Issues Optimistic Estimate for BBW 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) - Stock analysts at DA Davidson upped their FY2026 earnings estimates for shares of Build-A-Bear Workshop in a research note issued to investors on Tuesday, August 5th. DA Davidson analyst K. Cox now expects that the specialty retailer will post earnings per share of $4.11 for the year, up from their prior estimate of $3.97. DA Davidson has a "Buy" rating and a $64.00 price objective on the stock. The consensus estimate for Build-A-Bear Workshop's current full-year earnings is $3.71 per share.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last released its earnings results on Thursday, May 29th. The specialty retailer reported $1.17 EPS for the quarter, topping analysts' consensus estimates of $0.86 by $0.31. The company had revenue of $128.40 million during the quarter, compared to analysts' expectations 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 last year, the business earned $0.82 EPS.

A number of other research firms have also weighed in on BBW. Wall Street Zen upgraded shares of Build-A-Bear Workshop from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 5th. Piper Sandler lifted their price objective on Build-A-Bear Workshop from $35.00 to $39.00 and gave the stock an "overweight" rating in a research report on Thursday, May 15th.

Build-A-Bear Workshop Trading Up 3.3%

BBW traded up $1.63 on Thursday, hitting $51.04. 99,077 shares of the company's stock were exchanged, compared to its average volume of 268,764. Build-A-Bear Workshop has a fifty-two week low of $24.92 and a fifty-two week high of $55.56. The firm has a 50-day moving average price of $51.14 and a 200-day moving average price of $43.08. The stock has a market cap of $674.12 million, a price-to-earnings ratio of 12.27 and a beta of 0.70.

Hedge Funds Weigh In On Build-A-Bear Workshop

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Alta Fox Capital Management LLC purchased a new position in shares of Build-A-Bear Workshop in the 4th quarter valued at about $5,631,000. CSM Advisors LLC purchased a new position in Build-A-Bear Workshop during the second quarter worth about $6,233,000. Invesco Ltd. raised its position in shares of Build-A-Bear Workshop by 396.5% during the 4th quarter. Invesco Ltd. now owns 129,801 shares of the specialty retailer's stock worth $5,976,000 after purchasing an additional 103,656 shares during the last quarter. Marshall Wace LLP boosted its holdings in shares of Build-A-Bear Workshop by 269.9% in the 4th quarter. Marshall Wace LLP now owns 137,922 shares of the specialty retailer's stock valued at $6,350,000 after purchasing an additional 100,633 shares during the last quarter. Finally, Landscape Capital Management L.L.C. bought a new stake in shares of Build-A-Bear Workshop in the 1st quarter worth about $3,572,000. 79.30% of the stock is owned by institutional investors.

Insider Transactions at Build-A-Bear Workshop

In other news, Director Lesli Rotenberg sold 1,755 shares of the company's stock in a transaction on 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 transaction, the director directly owned 11,825 shares in the company, valued at approximately $632,874. This represents a 12.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Eric R. Fencl sold 6,993 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $48.50, for a total transaction of $339,160.50. Following the completion of the transaction, the chief accounting officer directly owned 123,318 shares in the company, valued at approximately $5,980,923. The trade was a 5.37% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 48,248 shares of company stock worth $2,276,383. Insiders own 5.80% of the company's stock.

Build-A-Bear Workshop Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Stockholders of record on Thursday, June 26th were issued a dividend of $0.22 per share. 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 currently 21.15%.

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.