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Beyond Meat, a plant-based protein company is the target of short-sellers.
According to data from analytics firm S3 Partners, Beyond Meat is currently one of the most-shorted stocks on the market. Short positions account for 37 percent of the company's freely traded shares, the highest ratio among Russell 1000 Index stocks.
According to Bloomberg, the ratio has risen from 26 percent in October. Concerns about a drop in sales and sagging momentum for plant-based meat producers have prompted investors to increase their bets against Beyond Meat.
Beyond Meat did not respond immediately to a request for comment on the trend.
Beyond Meat's stock has dropped more than 30% since October, when the company lowered its third-quarter revenue forecast. The company cited the COVID-19 pandemic, delayed shipments, and an ongoing labor shortage at the time.
Beyond Meat's stock has dropped by more than 40% in the last year.
According to the analytics firm S3 Partners, Beyond Meat is one of the most shorted stocks in the market.
Beyond Meat's stock plummeted in November after the company reported a larger-than-expected quarterly loss of $54.8 million, as well as sales that fell short of Wall Street's expectations.
According to noted short-seller Jim Chanos, the slowing of sales growth is a major reason for the increase in bets against Beyond Meat.
Chanos told the Financial Times that investors expected plant-based meat companies to improve their numbers as they gained consumer acceptance.
“The problem in Beyond Meat's case is that it no longer is the case,” Chanos explained.“It's a clash between reality and hope.”
In recent months, Beyond Meat has continued to forge new alliances. KFC added plant-based“Beyond Fried Chicken” to its menu on a limited basis this week.
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