Beyond Meat Shares Surge 17% Amid Short Squeeze, Business Struggles Persist
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: NASDAQ.COM
- Short Squeeze Effect: A trader's post about purchasing 1.5 million shares of Beyond Meat triggered a 17% stock price increase this week, highlighting the potential for a short squeeze, despite ongoing business struggles.
- Surge in Trading Volume: The stock jumped 11% on Wednesday with significantly increased trading volume, indicating heightened market interest in short-term speculation, yet the company reported a 13.3% year-over-year revenue decline to $70.2 million, revealing persistent business challenges.
- Declining Profitability: Beyond Meat reported an adjusted EBITDA loss of $21.6 million, reflecting ongoing pressure on profitability, even as the stock experiences volatility due to short-term trading activities.
- Investment Caution: Analysts advise caution for investors considering Beyond Meat, as the company did not make the current list of top ten recommended stocks, indicating market concerns about its future performance.
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: 1.030
Low
0.80
Averages
0.93
High
1.00
Current: 1.030
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.
