Formula Growth Ltd. Invests $1.92 Million in Build-A-Bear Workshop, Inc. $BBW

Formula Growth Ltd. bought a new stake in Build-A-Bear Workshop, Inc. (NYSE:BBW) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 62,642 shares of the specialty retailer’s stock, valued at approximately $1,917,000. Formula Growth Ltd. owned about 0.50% of Build-A-Bear Workshop at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of the business. Kestra Advisory Services LLC bought a new stake in Build-A-Bear Workshop during the 4th quarter worth approximately $28,000. IFP Advisors Inc raised its position in 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 purchasing an additional 203 shares during the last quarter. Larson Financial Group LLC boosted its stake in 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 worth $35,000 after purchasing an additional 444 shares in the last quarter. Wexford Capital LP acquired a new position in Build-A-Bear Workshop in the third quarter worth $69,000. Finally, Clearstead Advisors LLC grew its holdings in shares of Build-A-Bear Workshop by 160.6% during the fourth quarter. Clearstead Advisors LLC now owns 1,079 shares of the specialty retailer’s stock worth $66,000 after purchasing an additional 665 shares during the last quarter. 79.30% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Build-A-Bear Workshop news, Director Sharon Price John sold 6,818 shares of the business’s stock in a transaction dated 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 directly owned 181,653 shares of the company’s stock, valued at approximately $7,271,569.59. The trade was a 3.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director George Carrara sold 3,000 shares of the company’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $34.52, for a total transaction of $103,560.00. Following the transaction, the director owned 11,277 shares in the company, valued at approximately $389,282.04. The trade was a 21.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.00% of the company’s stock.

Analyst Upgrades and Downgrades

BBW has been the subject of a number of research reports. DA Davidson restated a “buy” rating and issued a $60.00 target price on shares of Build-A-Bear Workshop in a research note on Friday, May 29th. Weiss Ratings reissued a “hold (c)” rating on shares of Build-A-Bear Workshop in a report on Monday, August 17th. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $70.00.

Build-A-Bear Workshop Stock Performance

NYSE:BBW opened at $28.45 on Friday. The company has a market cap of $356.83 million, a price-to-earnings ratio of 6.66 and a beta of 1.10. The stock’s fifty day moving average price is $34.33 and its two-hundred day moving average price is $38.05. Build-A-Bear Workshop, Inc. has a 52-week low of $27.50 and a 52-week high of $75.85.

Build-A-Bear Workshop (NYSE:BBW) last released its earnings results on Thursday, August 27th. The specialty retailer reported $0.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.64 by $0.06. The company had revenue of $115.29 million during the quarter, compared to the consensus estimate of $120.81 million. Build-A-Bear Workshop had a return on equity of 32.15% and a net margin of 10.48%. On average, equities analysts predict that Build-A-Bear Workshop, Inc. will post 4.04 EPS for the current fiscal year.

Build-A-Bear Workshop Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Investors of record on Thursday, June 25th were given a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date was Thursday, June 25th. Build-A-Bear Workshop’s dividend payout ratio (DPR) is presently 21.55%.

Key Stories Impacting Build-A-Bear Workshop

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

• Positive Sentiment: Fiscal second-quarter diluted EPS was $0.70, exceeding the reported analyst consensus of $0.64, while the company returned $22.7 million to shareholders through share repurchases during the first half of fiscal 2026. Build-A-Bear Workshop Reports Fiscal Second Quarter 2026 Results
• Neutral Sentiment: A director sold 6,818 shares for approximately $273,000 under a pre-arranged Rule 10b5-1 trading plan. Because the sale was scheduled in advance and the director retained a substantial stake, it is unlikely to be the primary driver of the selloff. Build-A-Bear Workshop Director Sharon Price John Sells Shares
• Negative Sentiment: Second-quarter revenue fell 7.2% year over year to $115.3 million, below the approximately $121.1 million analyst estimate. Pre-tax income declined to $11.6 million from $15.3 million, and EPS fell from $0.94 a year earlier, indicating pressure on both demand and profitability. Build-A-Bear Stock Sinks as Weak Traffic, Guidance Cut Hit Sentiment
• Negative Sentiment: Management cut fiscal 2026 revenue guidance to $500 million–$525 million from $530 million–$550 million, below the roughly $535.6 million consensus estimate. This was the company’s second revenue-guidance reduction this year and reflected weaker expected traffic. Build-A-Bear Cuts Outlook, Fires Executive After Sales Fall
• Negative Sentiment: Build-A-Bear also fired its chief growth officer. The executive departure, combined with soft traffic and the lowered outlook, intensified concerns about the company’s growth strategy and prompted unusually heavy trading in BBW. Build-A-Bear Shares on Track for Biggest Drop Ever on Weak Revenue Outlook

Build-A-Bear Workshop Company Profile

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.