Beyond Meat Stock Eyes Worst Day Since June

Analysts have been quick to weigh in after Beyond Meat earnings

Jul 30, 2019 at 9:29 AM
facebook twitter linkedin

Beyond Meat Inc (NASDAQ:BYND) stock is bracing for a 14.7% drop out of the gate, after the plant-based burger maker announced a secondary stock offering roughly three months after its initial public offering (IPO) in order to fund the construction of more manufacturing facilities. This is offsetting a big second-quarter revenue beat of $67.3 million (compared to the $52.71 million consensus estimate) and an upwardly revised full-year revenue forecast.

Analysts have been quick to chime in this morning. J.P. Morgan Securities raised its price target to $188 from $121, saying the company is still a beat-and-raise story, and that "fundamental momentum may matter more than valuation" in the near term. BYND stock also received price-target hikes from Bernstein (to $172) and Consumer Edge (to $131), though all three sit well below last night's close at $222.13.

While analysts have been lukewarm toward Beyond Meat -- all five in coverage maintain a "neutral" rating -- options traders have been bullish. Over the past 10 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.35 calls for each put.

Drilling down, the weekly 8/2 300-strike and August 300 calls have seen the biggest increases in open interest over this two-week time frame. Those buying to open positions here expect Beyond Meat to be above $300 by expiration at the close this Friday, Aug. 2, and the close on Friday, Aug. 16, respectively.

Beyond Meat stock has been red-hot since its early May IPO, up almost 383% from its May 2 open at $46 to Monday night's close. Should today's pre-market losses hold, it would mark BYND's worst day since June 11, when it slumped 25%, and its first pair of back-to-back losses since mid-July,


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners