Beyond Meat among most shorted US companies

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Short-sellers are aiming to feast on plant-based protein agency Beyond Meat.

Beyond Meat at present ranks as one of many most-shorted shares in the marketplace, based on information from analytics agency S3 Partners. Short positions account for 37 % of the corporate’s freely traded shares, the very best ratio among shares included within the Russell 1000 Index.

The ratio has elevated from 26 % in October, Bloomberg reported. Investors have elevated guess in opposition to Beyond Meat over issues a few downtick in gross sales and sagging momentum for plant-based meat producers.

Beyond Meat didn’t instantly reply to a request for touch upon the pattern.

Shares of Beyond Meat have fallen greater than 30 % since October, when the corporate slashed its third-quarter income outlook. At the time, the corporate cited the damaging results of the COVID-19 pandemic, delayed shipments and an ongoing labor scarcity.

Over the final 12 months, shares of Beyond Meat have fallen greater than 40 %.

Beyond Meat is one of the most shorted stocks in the market, according to analytics firm S3 Partners.
Beyond Meat is likely one of the most shorted shares available in the market, based on analytics agency S3 Partners.
REUTERS//File Photo

In November, Beyond Meat’s inventory plummeted after the corporate reported a wider-than-expected quarterly loss $54.8 million, and gross sales that fell in need of Wall Street’s expectations.

The slowdown in gross sales development is a key cause for the rise in bets in opposition to Beyond Meat, based on famous short-seller Jim Chanos.

Chanos informed the Financial Times that traders have anticipated bettering numbers from plant-based meat corporations as they’ve gained acceptable with shoppers.

Short positions are 37 percent of Beyond Meat's freely traded shares.
Short positions are 37 % of Beyond Meat’s freely traded shares.
AP Photo/Gene J. Puskar, File

“The problem in Beyond Meat’s case is that it’s stopped being the case,” Chanos mentioned. “It’s a juxtaposition of the reality versus the hope.”

Beyond Meat has continued rolling out new partnerships in latest months. This week, KFC added plant-based “Beyond Fried Chicken” to its menu on a restricted foundation.

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