We discussed the macro economic environment in our Buyback Wednesdays post this Wednesday and the idea I want to discuss for this mid-month update will likely be impacted by the macro environment despite the very attractive valuation of the company and a huge stock buyback the company announced.
Build-A-Bear Workshop (BBW) $14.07
Build-A-Bear Workshop (BBW) announced a $50 million buyback when it reported fiscal Q2 2022 results on September 1. While small in absolute terms, considering the company’s market cap was only $230 million at announcement, the buyback represented nearly 22% of the company’s market cap. This buyback comes at the heels of another $25 million buyback that was announced in November 2021 and was recently completed. In addition to these buybacks, the company also paid out a special dividend of $1.25 per share last December.