facing severe margin pressure and it’s expected to continue for the next few quarters,” said Arun Sundaram, analyst at CFRA. “Investors are more concerned about the margin headwinds we’ve seen since the last quarter. The weight of bets against Beyond Meat stock has meant that the shares have failed to react to various “good news” announcements from the company, including US and European executive hirings from the food industry and KFC’s launch of Beyond Meat’s plant-based “chicken” nuggets in the US. Investors have been alarmed by the company’s forecast for fourth -quarter sales of $85m-$110m, a year on year range of a 17 per cent fall to an 8 per cent rise. It’s a juxtaposition of the reality versus the hope,” said the founder of New York-based hedge fund Kynikos Associates, best known for calling Enron’s collapse, adding: “That’s been the short opportunity.”īeyond Meat stock is trading just over $65 per share, less than half of what it was at the midpoint last year. While the general perception around growth in the plant-based meat market was still strong, “the problem in Beyond Meat’s case is that it’s stopped being the case. US short seller Jim Chanos, who holds a bearish position on Beyond Meat, said the plant-based meat producer had ceased to be a growth company. Bearish bets accounted for 42 per cent of Beyond Meat’s freely traded shares as of January 10 - the highest ratio in the Russell 1000 index of the biggest US-listed companies, according to specialist data provider S3 Partners.
Since then, short sellers - who make money on share price falls - have piled into the stock. A few weeks later, the group reported lower than expected third-quarter sales and slashed revenue guidance for the following quarter. Short-positions on Beyond Meat shares have increased 40 per cent since late October, when the California-based company issued a revenue warning. We’ll send you a myFT Daily Digest email rounding up the latest Beyond Meat Inc news every morning.īeyond Meat has become one of the most shorted companies on the US stock market as investors fret over weaker sales and scepticism grows over the plant-based meat boom.
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