Build-A-Bear Workshop (NYSE:BBW) Rating Lowered to Strong Sell at Zacks Research

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

A number of other analysts have also weighed in on the company. Weiss Ratings restated a “hold (c)” rating on shares of Build-A-Bear Workshop in a report on Monday, August 17th. DA Davidson cut their price target on Build-A-Bear Workshop from $60.00 to $37.00 and set a “buy” rating on the stock in a report on Friday, August 28th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $53.50.

Build-A-Bear Workshop Price Performance

NYSE:BBW opened at $30.45 on Monday. Build-A-Bear Workshop has a 1-year low of $27.50 and a 1-year high of $75.85. The company has a 50-day moving average of $34.23 and a 200 day moving average of $37.58. The firm has a market cap of $381.84 million, a PE ratio of 7.56 and a beta of 1.05.

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

Insider Buying and Selling at Build-A-Bear Workshop

In related news, Director George Carrara sold 3,000 shares of the company’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $34.52, for a total value of $103,560.00. Following the transaction, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 value of $272,924.54. Following the completion of the transaction, 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Build-A-Bear Workshop in the 2nd quarter worth approximately $245,000. California State Teachers Retirement System raised its position in Build-A-Bear Workshop by 61,511.8% during the 2nd quarter. California State Teachers Retirement System now owns 414,031 shares of the specialty retailer’s stock worth $13,526,000 after buying an additional 413,359 shares during the last quarter. AXQ Capital LP lifted its stake in Build-A-Bear Workshop by 26.1% during the 2nd quarter. AXQ Capital LP now owns 8,167 shares of the specialty retailer’s stock valued at $250,000 after acquiring an additional 1,692 shares during the period. Wellington Management Group LLP increased its stake in shares of Build-A-Bear Workshop by 108.9% in the second quarter. Wellington Management Group LLP now owns 21,100 shares of the specialty retailer’s stock worth $646,000 after acquiring an additional 11,000 shares during the period. Finally, Cannell Capital LLC acquired a new stake in shares of Build-A-Bear Workshop in the second quarter worth $3,155,524. 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: Northland Securities initiated a fiscal 2028 EPS estimate of $3.84, above the current full-year consensus estimate of $3.53, suggesting longer-term earnings potential if growth recovers.
• Positive Sentiment: In its latest reported quarter, Build-A-Bear earned $0.70 per share, exceeding the $0.64 analyst consensus. However, revenue was below expectations, limiting the bullish impact.
• Neutral Sentiment: Rosen Law Firm announced an investigation into potential securities claims alleging that Build-A-Bear may have provided materially misleading business information. The announcement is an allegation and does not establish wrongdoing, but it introduces legal and reputational uncertainty. Rosen Law Firm investor investigation
• Negative Sentiment: Zacks Research downgraded Build-A-Bear from “hold” to “strong sell,” a clear negative signal for investor sentiment.
• Negative Sentiment: Northland Securities sharply reduced its Q3 2027 EPS forecast to $0.50 from $0.79 and its Q4 2027 forecast to $1.08 from $1.45, pointing to weaker anticipated profitability in the near term.
• Negative Sentiment: Small Cap Consu also cut its Q3 2027 EPS estimate, to $0.66 from $0.87, reinforcing concerns about slowing earnings momentum.
• Negative Sentiment: Recent commentary highlights weak earnings, questions about strategy, and the need for customer traffic and product momentum to recover. Concerns about Build-A-Bear strategy Build-A-Bear traffic and product momentum analysis

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.