Build-A-Bear Workshop (NYSE:BBW) Lowered to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Build-A-Bear Workshop from a "strong-buy" to a "buy" rating, reflecting a shift in analyst sentiment regarding the stock.
• Piper Sandler and DA Davidson both raised their price targets for the stock, now set at $39.00 and $64.00 respectively, suggesting confidence in the company's future performance.
• Build-A-Bear Workshop reported strong quarterly earnings, with an EPS of $1.17 that exceeded analyst expectations, alongside revenue of $128.40 million.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

BBW has been the subject of a number of other research reports. Piper Sandler lifted their target price on Build-A-Bear Workshop from $35.00 to $39.00 and gave the stock an "overweight" rating in a report on Thursday, May 15th. DA Davidson lifted their target price on Build-A-Bear Workshop from $60.00 to $64.00 and gave the stock a "buy" rating in a report on Monday, August 4th. Three research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $52.67.

Build-A-Bear Workshop Stock Up 14.6%

Shares of BBW traded up $8.54 during midday trading on Friday, reaching $67.10. 228,957 shares of the stock were exchanged, compared to its average volume of 269,866. Build-A-Bear Workshop has a twelve month low of $29.32 and a twelve month high of $70.01. The company has a market cap of $886.39 million, a P/E ratio of 16.13 and a beta of 0.70. The stock's 50 day simple moving average is $52.84 and its 200 day simple moving average is $44.35.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last posted its earnings results on Thursday, August 28th. The specialty retailer reported $0.94 earnings per share for the quarter, topping analysts' consensus estimates of $0.67 by $0.27. Build-A-Bear Workshop had a return on equity of 40.74% and a net margin of 10.91%.During the same quarter in the prior year, the company earned $0.64 earnings per share. As a group, analysts predict that Build-A-Bear Workshop will post 3.71 earnings per share for the current year.

Insider Transactions at Build-A-Bear Workshop

In related news, CAO Eric R. Fencl sold 6,993 shares of Build-A-Bear Workshop stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $48.50, for a total value of $339,160.50. Following the transaction, the chief accounting officer directly owned 123,318 shares of the company's stock, valued at $5,980,923. The trade was a 5.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Craig Leavitt sold 8,250 shares of Build-A-Bear Workshop stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $50.21, for a total value of $414,232.50. Following the completion of the transaction, the director directly owned 72,392 shares in the company, valued at approximately $3,634,802.32. This represents a 10.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 48,248 shares of company stock valued at $2,276,383. 5.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Build-A-Bear Workshop

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Quarry LP acquired a new position in shares of Build-A-Bear Workshop in the first quarter worth approximately $28,000. AlphaQuest LLC lifted its stake in shares of 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 acquiring an additional 419 shares during the period. MTM Investment Management LLC acquired a new position in shares of Build-A-Bear Workshop in the second quarter worth approximately $52,000. Canada Pension Plan Investment Board acquired a new position in shares of Build-A-Bear Workshop in the second quarter worth approximately $57,000. Finally, Ameritas Investment Partners Inc. lifted its stake in shares of 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 acquiring an additional 206 shares during the period. 79.30% of the stock is owned by institutional investors and hedge funds.

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.