Beyond Meat (NASDAQ: BYND) has seen investors place large bets against the success of the company in the stock market in the last few months.
With that being said, BYND stock is up almost 50% in the last month, while remaining down 42% for the year. However, not much has changed for Beyond Meat, as the management believes that it can still grow its revenues by 21% to 33% for the full year, possibly increasing its cash on hand, which was at $548 million in the last quarter.
On the other hand, BYND recently made the most crowded shorts list compiled by S3 Partners’ Ihor Dusaniwsky. The list considered factors such as total short dollars at risk, short interest compared to tradable float, stock loan liquidity, and trading liquidity.
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Among others, BYND was identified as a name most at risk of a short squeeze, though the potential may not be as big as it was for the meme trading king, GameStop (NYSE: GME).
Meanwhile, Oppenheimer released a company update on Beyond Meat, analyzing the pricing action and price cuts for the firm’s products, possibly signaling more challenges ahead. According to Oppenheimer’s analyst, Rupesh Parikh, the company reduced their regular price of burgers by 10% over the 4th of July weekend; yet, he kept a ‘Perform’ rating for the shares.
BYND chart and analysis
Notwithstanding, the short-term trend for the stock is positive, with the shares staying in the $22.60 to $37.80 range over the last month, showing signs of accumulation.
For now, the support line for BYND is at $31.59, with the next pivot point at $25.89 if the first resistance is broken. Further, the resistance line is now at $38.96, and the next pivot point if the stock breaks above, at $41.40.
On the other hand, analysts rate the shares a moderate sell, predicting that the average price in the next 12 months could reach $24.38, –35.09% downside from the current trading price of $37.56.
Finally, the bearishness surrounding BYND stock, makes it one of the most shorted, billion dollars plus valuation names in the stock market today.
In essence, this means that more volatility will surround the stock as well as higher coverage, possibly from the shorts attempting to poke holes in the business model to try and have investors change their minds on Beyond Meat.
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