BlackRock Inc. Invests $30.48 Million in Build-A-Bear Workshop, Inc. $BBW

Key Points

• BlackRock acquired 995,791 Build-A-Bear shares worth approximately $30.48 million, giving it a 7.94% stake. Institutional investors collectively own about 79.3% of the company.
• Build-A-Bear’s quarterly EPS of $0.70 exceeded estimates of $0.64, but revenue of $115.3 million missed the $120.8 million consensus. Analysts maintain a “Moderate Buy” rating with an average price target of $53.50, though DA Davidson cut its target to $37.
• The stock opened at $30.45, near the lower end of its $27.50–$75.85 52-week range. Concerns include lowered earnings forecasts, reported criticism of the company’s strategy, director share sales and a law-firm investigation into potential securities claims.

BlackRock Inc. acquired a new stake in Build-A-Bear Workshop, Inc. (NYSE:BBW - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 995,791 shares of the specialty retailer's stock, valued at approximately $30,481,000. BlackRock Inc. owned approximately 7.94% of Build-A-Bear Workshop at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Fuller & Thaler Asset Management Inc. raised its holdings in Build-A-Bear Workshop by 177.8% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 612,577 shares of the specialty retailer's stock worth $37,533,000 after acquiring an additional 392,039 shares in the last quarter. State Street Corp boosted its position in Build-A-Bear Workshop by 28.1% during the fourth quarter. State Street Corp now owns 391,646 shares of the specialty retailer's stock valued at $24,072,000 after purchasing an additional 85,871 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in Build-A-Bear Workshop by 129.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 374,756 shares of the specialty retailer's stock valued at $22,963,000 after purchasing an additional 211,145 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in Build-A-Bear Workshop by 2.7% in the first quarter. Dimensional Fund Advisors LP now owns 366,456 shares of the specialty retailer's stock valued at $13,724,000 after purchasing an additional 9,642 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Build-A-Bear Workshop by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 319,162 shares of the specialty retailer's stock worth $19,559,000 after purchasing an additional 1,994 shares during the last quarter. Institutional investors and hedge funds own 79.30% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. DA Davidson dropped their price objective on Build-A-Bear Workshop from $60.00 to $37.00 and set a "buy" rating on the stock in a research note on Friday, August 28th. Weiss Ratings reissued a "hold (c)" rating on shares of Build-A-Bear Workshop in a research note on Monday, August 17th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $53.50.

Key Headlines Impacting Build-A-Bear Workshop

Here are the key news stories impacting Build-A-Bear Workshop this week:

• Positive Sentiment: Build-A-Bear’s latest quarterly EPS of $0.70 exceeded the $0.64 analyst consensus, providing evidence that the company continues to control costs and generate solid profitability. However, quarterly revenue of $115.3 million fell short of the $120.8 million estimate.
• Neutral Sentiment: Analysts continue to update their earnings outlook for BBW. Northland Securities projects fiscal 2028 EPS of $3.84, slightly below the current full-year consensus estimate of $3.96, suggesting expectations for growth remain restrained. Northland Securities earnings estimates
• Negative Sentiment: Small Cap Consu reduced its fiscal third-quarter 2027 EPS forecast to $0.66 from $0.87. The cut reinforces concerns that weaker traffic or product momentum could weigh on upcoming results. Small Cap Consu earnings estimate revision
• Negative Sentiment: Commentary from investor Michael Burry reportedly highlighted BBW’s weak earnings and raised questions about the company’s strategy, potentially increasing scrutiny of management’s approach to growth. Burry comments on Build-A-Bear strategy
• Negative Sentiment: Rosen Law Firm announced an investigation into potential securities claims, alleging that Build-A-Bear may have issued materially misleading business information. The investigation does not establish wrongdoing, but it creates legal and reputational risk and may weigh on the shares. Rosen Law Firm Build-A-Bear investigation

Insider Buying and Selling

In other Build-A-Bear Workshop news, Director Sharon Price John sold 6,818 shares of the firm's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $40.03, for a total transaction of $272,924.54. Following the completion of the sale, the director owned 181,653 shares of the company's stock, valued at $7,271,569.59. This trade represents a 3.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director George Carrara sold 3,000 shares of the firm's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $34.52, for a total value of $103,560.00. Following the sale, the director directly owned 11,277 shares of the company's stock, valued at $389,282.04. This represents a 21.01% decrease in their position. The SEC filing for this sale provides additional information. 4.00% of the stock is currently owned by insiders.

Build-A-Bear Workshop Stock Performance

Shares of BBW stock opened at $30.45 on Wednesday. Build-A-Bear Workshop, Inc. has a 52-week low of $27.50 and a 52-week high of $75.85. The stock has a market cap of $381.84 million, a price-to-earnings ratio of 7.56 and a beta of 1.05. The firm's 50-day moving average is $34.23 and its 200-day moving average is $37.58.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The specialty retailer reported $0.70 EPS for the quarter, topping analysts' consensus estimates of $0.64 by $0.06. The business had revenue of $115.29 million during the quarter, compared to analysts' expectations of $120.81 million. Build-A-Bear Workshop had a return on equity of 29.85% and a net margin of 9.96%. Sell-side analysts predict that Build-A-Bear Workshop, Inc. will post 3.53 EPS for the current fiscal year.

Build-A-Bear Workshop Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Thursday, June 25th were paid a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Thursday, June 25th. Build-A-Bear Workshop's payout ratio is currently 22.83%.

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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