Shares in Beyond Meat have lost their sizzle, with investors placing increasingly bearish bets on the company that launched one of the most successful public offerings in the US this year.
Equity analysts have been cautioning against an overheated share price since the plant-based meat substitute group’s stock soared after its initial public offering in May. Short-sellers now account for 47.2 per cent of Beyond Meat’s freely traded shares — the second highest ratio in the Russell 1000 index of the biggest US-listed companies, according to Bloomberg data.
Beyond Meat’s flotation coincided with rising consumer enthusiasm over plant-based protein alternatives. After a market debut at $25 a share in early May, the stock hit an intraday peak above $230 in July. But it has been downhill since. On Wednesday the stock slipped 8 per cent, dipping below $100 for the first time since June, before recovering in early trading on Thursday.