Skip to content

Barclays downgrades Beyond Meat by 69% as firm misses earnings

Barclays downgrades Beyond Meat by 69% as firm misses earnings
Dino Kurbegovic

After the market had closed on May 11, Beyond Meat, Inc. (NASDAQ: BYND) disclosed its most recent earnings report. On the following day, May 12, the company’s shares dropped by 24.34 percent during the premarket session as the reported data did not meet investors’ expectations.

Earnings per share (EPS) was missed by $0.60 with revenue rising ‘only’ 1.2% year-on-year (YoY). The company has had $109.45 million in revenue for the entire quarter with a net loss of $100.5 million.  

On top of that, Barclay’s (NYSE: BCS) downgraded BYND citing worries that the company might struggle to return to profitability in the near term, cutting the actual price target by 69%.

Full-year guidance was reaffirmed by BYND but it may still come under the expectations on Wall Street. Despite taking a pummeling in the premarket the shares recovered 20% of their loss in yesterday’s session to signal that the market may have overreacted. 

Chart and expectations 

Since August 2021 the shares have been slowly pushing downwards creating a downward momentum in the stock. Despite increased buying volumes on May 12, which enabled the stock to remove most of the losses after Barclay’s downgraded it. It is still trading below all daily Simple Moving Averages

 BYND 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Elsewhere, analysts seem to be bailing on the stock giving it a moderate sell rating with none of the analysts giving the company a buy rating. Still, the average next 12-month price they see for the stock at $31.55 is 25.80% higher than the current trading price of $25.08.  

The most bullish analysts predict that the price in the next 12 months could reach $50, yet, there might be more revisions to the price targets.

Source: TipRanks

Since its IPO in May 2019 the shares have lost 62% and are a good lesson on why getting in on unproven IPOs may be risky for investors. Only time will tell if the company manages to crawl back to profitability and turn the negative sentiment around. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.