Beyond Meat Target of Unusually High Options Trading (NASDAQ:BYND)

Key Points

• Unusual options activity: Traders bought 192,985 call options on BYND on Friday, about a 71% increase versus the typical daily call volume of 112,550.
• Weak fundamentals and market outlook: Beyond Meat opened at $0.95 (down ~3.6%), reported an EPS miss of ($0.29) vs. ($0.12) expected and revenue below estimates, and analysts hold a consensus rating of "Strong Sell" with a $0.83 target.
• Insider selling and ownership: Insiders recently sold shares (Teri Witteman ~29,978 shares at $1.00; CFO Lubi Kutua 419,042 shares at $0.60), insiders own 1.90% of the stock while institutions own ~52.48%.

Beyond Meat, Inc. (NASDAQ:BYND - Get Free Report) was the recipient of some unusual options trading activity on Friday. Traders purchased 192,985 call options on the stock. This represents an increase of approximately 71% compared to the typical daily volume of 112,550 call options.

Beyond Meat Trading Down 3.6%

Beyond Meat stock opened at $0.95 on Friday. Beyond Meat has a 12 month low of $0.50 and a 12 month high of $7.69. The stock's 50 day simple moving average is $0.76 and its two-hundred day simple moving average is $0.98. The firm has a market cap of $439.78 million, a PE ratio of -0.33 and a beta of 2.85.

Beyond Meat (NASDAQ:BYND - Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The company reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.17). The company had revenue of $61.59 million during the quarter, compared to analysts' expectations of $63.00 million. Beyond Meat had a negative return on equity of 37.44% and a net margin of 43.98%. On average, equities research analysts forecast that Beyond Meat will post -0.36 EPS for the current year.

Insider Activity

In other news, insider Teri L. Witteman sold 29,978 shares of the company's stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $1.00, for a total transaction of $29,978.00. Following the transaction, the insider owned 4,178,194 shares in the company, valued at $4,178,194. This represents a 0.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Lubi Kutua sold 419,042 shares of the company's stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $0.60, for a total transaction of $251,425.20. Following the transaction, the chief financial officer owned 5,749,967 shares in the company, valued at approximately $3,449,980.20. This trade represents a 6.79% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.90% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Banco Santander S.A. acquired a new position in shares of Beyond Meat during the 3rd quarter worth approximately $25,000. Evolve Private Wealth LLC acquired a new position in shares of Beyond Meat during the 1st quarter worth approximately $25,000. Xponance LLC acquired a new position in shares of Beyond Meat during the 4th quarter worth approximately $25,000. Savant Capital LLC acquired a new position in shares of Beyond Meat during the 3rd quarter worth approximately $28,000. Finally, Russell Investments Group Ltd. raised its stake in shares of Beyond Meat by 400.2% during the 3rd quarter. Russell Investments Group Ltd. now owns 14,786 shares of the company's stock worth $28,000 after buying an additional 11,830 shares during the period. 52.48% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages recently commented on BYND. Weiss Ratings reiterated a "sell (e+)" rating on shares of Beyond Meat in a research report on Wednesday, January 21st. BMO Capital Markets dropped their target price on Beyond Meat from $4.00 to $1.00 and set a "market perform" rating on the stock in a research report on Monday, April 6th. Barclays dropped their target price on Beyond Meat from $1.00 to $0.50 and set an "underweight" rating on the stock in a research report on Thursday, April 2nd. Finally, Zacks Research lowered Beyond Meat from a "hold" rating to a "strong sell" rating in a research report on Tuesday, April 7th. Two analysts have rated the stock with a Hold rating and seven have given a Sell rating to the stock. Based on data from MarketBeat.com, Beyond Meat presently has an average rating of "Strong Sell" and a consensus target price of $0.83.

About Beyond Meat

Beyond Meat, Inc NASDAQ: BYND develops, manufactures and sells plant-based meat substitutes designed to replicate the taste, texture and appearance of animal-based proteins. Since its founding in 2009 by Ethan Brown and initial public offering in 2019, the company has focused on leveraging proprietary technology and ingredient blends to produce a suite of products that cater to both retail and foodservice channels. Beyond Meat's mission centers on offering more sustainable protein options by reducing reliance on livestock farming and its associated environmental footprint.

The company's product portfolio includes Beyond Burger, Beyond Sausage, Beyond Beef and Beyond Chicken, each formulated to appeal to a broad range of consumers seeking meat alternatives without compromising on flavor or cooking versatility.

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