Beyond Meat Plans Share Dilution, Stock Drops 8.1%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Dilution Plan: Beyond Meat filed an S-3 prospectus indicating plans to issue common stock, preferred stock, and debt securities, without disclosing specific amounts or terms, which will dilute existing shareholders and potentially undermine investor confidence.
- Repayment Method Change: In an 8-K filing, Beyond Meat announced it will repay lenders with stock instead of cash, further diluting shareholder equity, while also reducing the exercise price for Unprocessed Foods' warrants from $3.26 to $1.95, reflecting the significant decline in the company's stock price.
- Market Reaction: Following the dilution news, Beyond Meat's stock dropped 8.1% on Tuesday, currently priced at $0.99, indicating market concerns over the company's financial health, with shares down approximately 70% over the past year.
- Financing Challenges: While the company hopes to encourage Unprocessed Foods to exercise its warrants for much-needed cash by lowering the exercise price, skepticism remains regarding the effectiveness of this strategy at current stock levels, potentially exacerbating financing difficulties.
BYND
$1.01+Infinity%1D
Analyst Views on BYND
Wall Street analysts forecast BYND stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BYND is 0.93 USD with a low forecast of 0.80 USD and a high forecast of 1.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
0 Buy
1 Hold
4 Sell
Strong Sell
Current: 1.070
Low
0.80
Averages
0.93
High
1.00
Current: 1.070
Low
0.80
Averages
0.93
High
1.00
About BYND
Beyond Meat, Inc. is a plant-based meat company offering a portfolio of plant-based meats. The Company sells a range of plant-based meat products across its three core platforms of beef, pork and poultry. The primary components of animal-based meat are amino acids, lipids, carbohydrates, trace minerals and water, which are not exclusive to animals and are plentiful in plants. Its beef platform products contain protein primarily derived from one or a combination of pea protein, rice protein, faba bean protein and wheat gluten. Its pork platform products include Beyond Sausage, Beyond Breakfast Sausage Patties, Beyond Breakfast Sausage Links and Beyond Sausage Crumbles. Its poultry platform consists of products that mimic animal-based chicken in its various merchandised forms, including chicken tenders, chicken nuggets and popcorn chicken. Its primary products under its poultry platform include Beyond Chicken Tenders, Beyond Chicken Nuggets and Beyond Popcorn Chicken.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
