Build-A-Bear: Small Cap Consumer Research Reiterates Buy, PT Raised to $65.

Build-A-Bear: Small Cap Consumer Research Reiterates Buy, PT Raised to $65.

Build-A-Bear Workshop, Inc. (NYSE: BBW) has seen increased institutional interest and a positive outlook from research analysts. Gallacher Capital Management LLC recently acquired a new position in Build-A-Bear Workshop shares, purchasing 16,830 shares valued at approximately $626,000 [1]. This move follows a series of recent acquisitions by other institutional investors, including Tower Research Capital LLC, GAMMA Investing LLC, Legal & General Group Plc, Intech Investment Management LLC, and The Manufacturers Life Insurance Company [1].

Analysts have also expressed a positive sentiment towards the company. DA Davidson raised its target price on Build-A-Bear Workshop from $50.00 to $60.00, giving the stock a "buy" rating [1]. Wall Street Zen upgraded the stock from a "buy" rating to a "strong-buy" rating [1]. Additionally, Piper Sandler raised its price objective from $35.00 to $39.00, assigning an "overweight" rating to the stock [1]. These upgrades suggest that analysts believe Build-A-Bear Workshop has strong fundamentals and growth potential.

The company's recent earnings report also provided positive insights. Build-A-Bear Workshop reported $1.17 earnings per share for the quarter, exceeding the consensus estimate of $0.86 by $0.31 [1]. The company's net margin stood at 10.91%, and its return on equity was 40.74% [1]. Revenue for the quarter was $128.40 million, surpassing analysts' expectations of $118.90 million [1]. These figures indicate strong financial performance and operational efficiency.

Moreover, the company announced a quarterly dividend of $0.22 per share, paid on July 10th [1]. This represents a $0.88 annualized dividend and a dividend yield of 1.66% [1]. The dividend payout ratio (DPR) is currently at 21.15% [1].

Insider activity also suggests a positive outlook. CAO Eric R. Fencl sold 6,993 shares of the company's stock at an average price of $48.50, while Director Lesli Rotenberg sold 1,755 shares at an average price of $53.52 [1]. These sales represent a 5.37% and 12.92% decrease in their respective positions, indicating that insiders are selling a portion of their holdings [1].

In summary, Build-A-Bear Workshop has seen increased institutional interest and positive analyst ratings, along with strong earnings and a dividend announcement. These factors suggest that the company is well-positioned for growth and could be an attractive investment opportunity for investors.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-16830-shares-in-build-a-bear-workshop-inc-nysebbw-acquired-by-gallacher-capital-management-llc-2025-07-21/