Beyond Meat Stock Reverses Course on Q2 Losses

The firm reported increased costs on a shift from restaurants to retail

Digital Content Manager
Aug 5, 2020 at 10:04 AM
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Beyond Meat Inc (NASDAQ:BYND) stock is pivoting lower this morning, off 6.9% to trade at $132.80, following a subpar second-quarter report, The company's losses of two cents per share matched analysts' estimates, while its revenue topped expectations. Beyond Meat said costs increased during the second quarter as restaurant closures forced it to repackage its product for a surge in retail demand. In response, Piper Sandler and UBS lifted their price targets to $130 and $110, respectively.  

BYND rallied ahead of its earnings event. In fact, the equity leapt past recent pressure at the 40-day moving average to hit a one-month high by the close. While the security is back below this level today, it's still trading well above its 80-day moving average, which provided a layer of support during Beyond Meat stock's July pullback. For the year, the stock is up over 80%. 

Most analysts are hesitant on BYND. Coming into today, just three said "strong buy," compared to eight "hold" ratings and six "sell" or worse recommendations. Plus, the 12-month consensus price target of $113.49 is a 14.5% discount to last night's close. 

Meanwhile, short sellers are piling on the faux meat name. Short interest rose 22.7% in the last reporting period, and now makes up a hefty 18.9% of BYND's available float.

 

 

 

 

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