Short Sellers Are Targeting Beyond Meat

image

(Bloomberg) — Short sellers are piling into Beyond Meat Inc., making it the most shorted company in the Russell 1000 Index, as the shares struggle to gain momentum amid growing competition for plant-based meat.

Short interest stands at 37% of the company’s freely traded shares, the highest among stocks in the Russell 1000 Index, according to the latest data from financial analytics firm S3 Partners. That’s risen from 26% at the start of October, and the move by sellers has picked up pace with short interest relative to tradable shares jumping more than 3% just last week.

Beyond Meat didn’t immediately respond to an emailed request for comment.

When Beyond Meat went public in May 2019, it held one of the most sought after initial public offerings, and jumped 163% on its debut. But the company is struggling to turn the initial buzz into durable investor support. Beyond Meat shares have dropped 46% over the past 12 months, compared with a 21% gain for the Russell 1000 Index.

The company’s last sales forecast disappointed analysts, with Taco Bell then canceling a planned test of a Beyond Meat product, while the competition is closing in. The likes of Nestle SA are investing in vegan startups and Chipotle Mexican Grill Inc. will sell its own pea-based chorizo.

Beyond Meat and the plant-based meat category as a whole are facing a more difficult outlook, as it appears the products will reach far fewer American households than initially projected, according to a recent note from Peter Galbo, an analyst at Bank of America Corp. Galbo said that consumers “develop more habitual routines when using plant-based dairy” as opposed to Beyond Meat’s products, which are consumed less frequently.

©2022 Bloomberg L.P.

Trending Ideas

Featured Stocks On The Move

Daily Rundown

Top 3 Stocks in Leading Sectors
  • 3 Electric Power Stocks To Buy Now

    Featured Content Hawaiian Electric Industries, Inc. (HE) Hawaiian Electric Industries, Inc. is a holding company that provides electric utility services and financial services in Hawaii. Through its subsidiaries, it supplies... Read More

  • 3 Bank Stocks To Buy Now

    Featured Content Comerica Incorporated (CMA) Comerica Incorporated is a financial services company headquartered in Dallas, Texas, offering a range of banking products and services, including commercial and retail banking, wealth... Read More

  • 3 Machinery Stocks To Buy Now

    Featured Content Alta Equipment Group Inc. (ALTG) Alta Equipment Group Inc. is an integrated equipment dealership platform in the United States, operating through three segments: Material Handling, Construction Equipment, and... Read More

  • 3 Silver Stocks To Buy Now

    Featured Content Gatos Silver, Inc. (GATO) Gatos Silver, Inc. is a precious metals mining company primarily focused on silver and zinc production. Its flagship Cerro Los Gatos mine in Mexico... Read More

  • 3 Metal Production Stocks To Buy Now

    Featured Content Century Aluminum Company (CENX) Century Aluminum Company is a primary aluminum producer, with operations that include the production of high-purity, low-carbon aluminum used in automotive, aerospace, and industrial... Read More

  • 3 Medical Drug Stocks To Buy Now

    Featured Content Teva Pharmaceutical Industries Limited (TEVA) Teva Pharmaceutical Industries Limited is a global pharmaceutical company specializing in generic and specialty medicines. The company provides a wide range of treatments... Read More

  • 3 Paper Product Stocks To Buy Now

    Featured Content AptarGroup Inc. (ATR) AptarGroup Inc. is a global leader in providing innovative dispensing and packaging solutions, serving diverse industries like beauty, personal care, and pharmaceuticals. They focus on... Read More

  • 3 Restaurant Stocks To Buy Now

    Featured Content Brinker International, Inc. (EAT) Brinker International, Inc. operates well-known restaurant brands such as Chili’s Grill & Bar and Maggiano’s Little Italy. The company is a leader in the... Read More

  • 3 Investment Brokerage Stocks To Buy Now

    Featured Content Robinhood Markets, Inc. (HOOD) Robinhood Markets, Inc. is a financial services company known for its commission-free trading platform, which allows users to trade stocks, options, cryptocurrencies, and ETFs.... Read More

  • 3 Shipping Stocks To Buy Now

    Featured Content ZIM Integrated Shipping Services Ltd. (ZIM) ZIM Integrated Shipping Services Ltd. is a global container shipping company that provides cargo transportation services worldwide. The company operates a modern... Read More

  • 3 Mining Stocks To Buy Now

    Featured Content Perpetua Resources Corp. (PPTA) Perpetua Resources Corp. is a mining company focused on the exploration and redevelopment of the Stibnite Gold Project in Idaho, which is one of... Read More

  • 3 Airline Stocks To Buy Now

    Featured Content General Electric Company (GE) General Electric Company is a global industrial conglomerate with operations spanning sectors such as aviation, healthcare, power, and renewable energy. GE is known for... Read More