Build-A-Bear Workshop, Inc. (NYSE:BBW) Announces Quarterly Dividend of $0.23

Key Points

• Build-A-Bear Workshop declared a quarterly dividend of $0.23 per share, payable October 8 to shareholders of record on September 24. The annualized dividend is $0.92, representing a 3.3% yield, with September 24 as the ex-dividend date.
• The dividend appears well covered, with a current payout ratio of 21.5%; analysts expect next year’s earnings of $3.76 per share, implying a projected payout ratio of 24.5%.
• In its latest quarter, Build-A-Bear reported adjusted earnings of $0.70 per share, exceeding estimates of $0.64, though revenue of $115.29 million fell short of the $120.81 million consensus forecast. Shares opened at $28.14, near their 52-week low of $27.50.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Get Free Report) announced a quarterly dividend on Wednesday, September 9th. Shareholders of record on Thursday, September 24th will be given a dividend of 0.23 per share by the specialty retailer on Thursday, October 8th. This represents a c) dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Thursday, September 24th.

Build-A-Bear Workshop has a payout ratio of 21.5% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Build-A-Bear Workshop to earn $3.76 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 24.5%.

Build-A-Bear Workshop Stock Performance

Shares of NYSE:BBW opened at $28.14 on Thursday. Build-A-Bear Workshop has a 52-week low of $27.50 and a 52-week high of $75.85. The company has a market capitalization of $352.83 million, a PE ratio of 6.98 and a beta of 1.05. The company has a fifty day moving average of $33.99 and a 200-day moving average of $36.66.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last released its quarterly earnings data on Thursday, August 27th. The specialty retailer reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.06. The company had revenue of $115.29 million for the quarter, compared to the consensus estimate of $120.81 million. Build-A-Bear Workshop had a return on equity of 29.85% and a net margin of 9.96%. On average, equities analysts forecast that Build-A-Bear Workshop will post 3.57 EPS for the current fiscal year.

Insider Activity at Build-A-Bear Workshop

In other news, Director Sharon John sold 6,818 shares of Build-A-Bear Workshop stock in a transaction on Monday, August 24th. The shares were sold at an average price of $40.03, for a total transaction of $272,924.54. Following the transaction, the director owned 181,653 shares in the company, valued at approximately $7,271,569.59. The trade was a 3.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 4.00% of the company's stock.

Institutional Trading of Build-A-Bear Workshop

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Kestra Advisory Services LLC acquired a new position in Build-A-Bear Workshop during the 4th quarter worth about $28,000. IFP Advisors Inc grew its position in shares of Build-A-Bear Workshop by 68.1% in the 3rd quarter. IFP Advisors Inc now owns 501 shares of the specialty retailer's stock valued at $33,000 after buying an additional 203 shares during the last quarter. Larson Financial Group LLC increased its stake in shares of Build-A-Bear Workshop by 453.1% in the third quarter. Larson Financial Group LLC now owns 542 shares of the specialty retailer's stock valued at $35,000 after buying an additional 444 shares during the period. Wexford Capital LP acquired a new stake in shares of Build-A-Bear Workshop in the third quarter valued at about $69,000. Finally, Clearstead Advisors LLC increased its stake in shares of Build-A-Bear Workshop by 160.6% in the fourth quarter. Clearstead Advisors LLC now owns 1,079 shares of the specialty retailer's stock valued at $66,000 after buying an additional 665 shares during the period. 79.30% of the stock is currently owned by institutional investors and hedge funds.

About Build-A-Bear Workshop

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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