Build-A-Bear Workshop (NYSE:BBW) Rating Lowered to Buy at 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 equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Saturday.

Several other brokerages have also issued reports on BBW. Piper Sandler boosted their price target on Build-A-Bear Workshop from $35.00 to $39.00 and gave the company an "overweight" rating in a research note on Thursday, May 15th. DA Davidson boosted their price target on Build-A-Bear Workshop from $60.00 to $64.00 and gave the company a "buy" rating in a research note on Monday, August 4th. Three equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company has an average rating of "Buy" and an average price target of $52.67.

Build-A-Bear Workshop Price Performance

Shares of NYSE BBW traded up $1.39 during trading hours on Friday, hitting $58.71. 150,827 shares of the company's stock were exchanged, compared to its average volume of 268,936. Build-A-Bear Workshop has a 1-year low of $27.44 and a 1-year high of $59.78. The stock has a market capitalization of $775.43 million, a price-to-earnings ratio of 14.07 and a beta of 0.70. The company's 50-day moving average price is $52.72 and its 200-day moving average price is $44.25.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last posted its quarterly earnings data on Thursday, May 29th. The specialty retailer reported $1.17 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.31. Build-A-Bear Workshop had a return on equity of 40.74% and a net margin of 10.91%.The business had revenue of $128.40 million during the quarter, compared to analysts' expectations of $118.90 million. During the same quarter in the previous year, the firm earned $0.82 EPS. On average, research analysts expect that Build-A-Bear Workshop will post 3.71 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Lesli Rotenberg sold 1,755 shares of the company's stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $53.52, for a total value of $93,927.60. Following the sale, the director directly owned 11,825 shares in the company, valued at approximately $632,874. This represents a 12.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Eric R. Fencl sold 6,993 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $48.50, for a total value of $339,160.50. Following the completion of the sale, the chief accounting officer owned 123,318 shares in the company, valued at approximately $5,980,923. This represents a 5.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, 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.

Institutional Investors Weigh In On Build-A-Bear Workshop

Large investors have recently modified their holdings of the stock. Quarry LP bought a new stake in shares of Build-A-Bear Workshop in the 1st quarter valued at approximately $28,000. AlphaQuest LLC grew its position in Build-A-Bear Workshop by 106.1% during the 1st quarter. AlphaQuest LLC now owns 814 shares of the specialty retailer's stock worth $30,000 after acquiring an additional 419 shares during the last quarter. MTM Investment Management LLC bought a new stake in Build-A-Bear Workshop during the 2nd quarter worth approximately $52,000. Canada Pension Plan Investment Board bought a new stake in Build-A-Bear Workshop during the 2nd quarter worth approximately $57,000. Finally, Ameritas Investment Partners Inc. grew its position in Build-A-Bear Workshop by 19.4% during the 2nd 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 last quarter. 79.30% of the stock is currently owned by institutional investors.

Build-A-Bear Workshop Company Profile

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.