Zacks Research Downgrades Build-A-Bear Workshop (NYSE:BBW) to Strong Sell

Build-A-Bear Workshop (NYSE:BBW) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday, Zacks reports.

A number of other brokerages have also recently weighed in on BBW. DA Davidson reduced their price target on shares of Build-A-Bear Workshop from $60.00 to $37.00 and set a “buy” rating for the company in a research report on Friday, August 28th. Weiss Ratings reissued a “hold (c)” rating on shares of Build-A-Bear Workshop in a report on Monday, August 17th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $53.50.

Build-A-Bear Workshop Price Performance

Shares of NYSE BBW opened at $30.45 on Monday. The business has a 50-day moving average of $34.23 and a two-hundred day moving average of $37.58. The company has a market capitalization of $381.84 million, a price-to-earnings ratio of 7.56 and a beta of 1.05. Build-A-Bear Workshop has a 1 year low of $27.50 and a 1 year high of $75.85.

Build-A-Bear Workshop (NYSE:BBW) last issued its earnings results on Thursday, August 27th. The specialty retailer reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.06. The business had revenue of $115.29 million for the quarter, compared to analyst estimates of $120.81 million. Build-A-Bear Workshop had a return on equity of 29.85% and a net margin of 9.96%. As a group, equities research analysts expect that Build-A-Bear Workshop will post 3.53 earnings per share for the current year.

Insider Activity

In other Build-A-Bear Workshop news, Director George Carrara sold 3,000 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $34.52, for a total transaction of $103,560.00. Following the completion of the sale, the director directly owned 11,277 shares of the company’s stock, valued at approximately $389,282.04. This trade represents a 21.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Sharon Price John sold 6,818 shares of Build-A-Bear Workshop stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $40.03, for a total value of $272,924.54. Following the completion of the transaction, the director owned 181,653 shares in the company, valued at $7,271,569.59. This trade represents a 3.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.00% of the company’s stock.

Institutional Investors Weigh In On Build-A-Bear Workshop

Hedge funds have recently modified their holdings of the stock. Kestra Advisory Services LLC purchased a new position in Build-A-Bear Workshop in the 4th quarter valued at $28,000. IFP Advisors Inc increased its stake 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 buying an additional 203 shares during the period. Larson Financial Group LLC raised its position in Build-A-Bear Workshop by 453.1% during the 3rd quarter. Larson Financial Group LLC now owns 542 shares of the specialty retailer’s stock worth $35,000 after buying an additional 444 shares during the last quarter. Canada Pension Plan Investment Board purchased a new position in Build-A-Bear Workshop during the 2nd quarter worth $57,000. Finally, State of Wyoming acquired a new stake in shares of Build-A-Bear Workshop in the 2nd quarter worth $59,000. 79.30% of the stock is owned by institutional investors and hedge funds.

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

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.