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Bear Note Has Beyond Meat Stock Eyeing Lowest Close Since June

Wells Fargo urges "restraint" before buying BYND shares

Managing Editor
Oct 14, 2019 at 10:07 AM
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The shares of Beyond Meat Inc (NASDAQ:BYND) are down 4.2% to trade at $125.88 today, after Wells Fargo initiated coverage on the faux-meat concern with a "market perform" rating and $125 price target. The analyst in coverage advised investors to tone down the aggressive expectations, and cautioned "restraint," as the market waits for more information about competitive entrants to the plant-based meat market.

Beyond Meat stock is cruising toward a six-day losing streak -- its worst skid on record -- and lowest close since June 6. On Friday, the shares logged their fourth straight week in the red, and their worst week since mid-August. BYND has now shed 47% since its July 26 peak of $239.71, with recent resistance emerging at its 40-day moving average. 

Wells Fargo's price target represents 5% downside from the security's Friday closing perch of $131.39. There's certainly more room for price-target cuts, too, considering BYND's consensus 12-month price target sits up at $159.80, a 27% premium to its current price. 

Options traders have pursued calls and puts at a near-equal pace. In the last 10 days, 62,633 calls were bought to open at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to 62,215 puts.

Elsewhere, short sellers have been ramping up their exposure to BYND stock. Short interest jumped 12.3% in the most recent reporting period to 6.12 million shares. This represents 27.2% of the equity's available float, or 1.3 times the average daily pace of trading.

 

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