S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Applied Materials stock is Ray Dalio's favorite in this new cycle
Palo Alto Networks aims at cyber security leadership
Is Gold Really Boring? (Ad)
Spotify sounding better to analysts as company tunes into profits
3 Reasons the Capital One-Discover merger is a big deal
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Applied Materials stock is Ray Dalio's favorite in this new cycle
Palo Alto Networks aims at cyber security leadership
Is Gold Really Boring? (Ad)
Spotify sounding better to analysts as company tunes into profits
3 Reasons the Capital One-Discover merger is a big deal
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Applied Materials stock is Ray Dalio's favorite in this new cycle
Palo Alto Networks aims at cyber security leadership
Is Gold Really Boring? (Ad)
Spotify sounding better to analysts as company tunes into profits
3 Reasons the Capital One-Discover merger is a big deal
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Applied Materials stock is Ray Dalio's favorite in this new cycle
Palo Alto Networks aims at cyber security leadership
Is Gold Really Boring? (Ad)
Spotify sounding better to analysts as company tunes into profits
3 Reasons the Capital One-Discover merger is a big deal
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
How major US stock indexes fared Wednesday, 2/21/2024
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast

BYND's short interest hits 45%, is a squeeze imminent?

Photo of Beyond Meat packages in retail grocery setting

Key Points

  • Increased market optimism sparks breakout trends in stocks with high short interest.
  • Despite a 28% year-to-date decline, BYND recently surged 26% in the previous four weeks.
  • Short interest in BYND stands at 45.82%, steadily climbing since mid-October. 
  • 5 stocks we like better than Beyond Meat

As the overall market and various leading sectors, such as the technology and financial sectors, trade near their 52-week highs, optimism and speculation have seemingly returned to the markets. 

Such optimism has been seen over the previous several weeks, judging by the number of breakouts occurring across several sectors. In particular, stocks with abnormally large short interest and beaten-down charts have benefited from the newfound optimism. 

As far as beaten-down stocks with a heightened short interest go, one stock might meet that criteria better than any other. Shares of Beyond Meat NASDAQ: BYND are down over 28% year-to-date but have experienced a stellar four-week performance, rising over 26%. 

The stock has experienced rising short interest and recently broke above a critical resistance level. Which now begs the question, could Beyond Meat be setting up for a short squeeze much higher?

A closer look at Beyond Meat

beyond meat stock analysis MarketBeat

Beyond Meat specializes in developing, producing, and distributing plant-based meat alternatives globally. Their diverse portfolio includes plant-based beef, pork, and poultry substitutes, available in various retail channels such as grocery stores, mass merchandisers, and natural retailers. 

BYND stock is trading near the high end of its 50-day range but in the lower quartile of its 52-week range. The company has a $551 million market capitalization and trades 2.67 million shares on average. The stock possesses an overwhelming bearish sentiment, as analysts predict a downside with a Sell rating, and has a well above average short interest. 

bynd analyst ratings on MarketBeat

Based on nine analyst ratings, the stock has a consensus rating of Sell and a $7.88 price target, forecasting an almost 8% downside. 

The bearish analyst sentiment has been a steady fixture for BYND. However, in recent months, it has gotten worse. Three months ago the stock had a Reduce rating and $12.78 price target. Since then, the price target has steadily lowered, and the rating has changed to Sell, with more analysts rating the stock as a Sell versus a Hold. 

Short interest is on the rise

bynd short interest on MarketBeat

The short interest in BYND is at staggering heights, currently at 45.82%, meaning that almost half its float is sold short. A short interest of that magnitude firmly solidifies Beyond Meat as one of the most shorted stocks on the Nasdaq.

Notably, the short interest has been steadily climbing since October 15. The short interest has risen 4.74% vs. the previous month, and the total volume sold short currently stands at $201 million. 

Will the recent momentum in BYND shares continue?

bynd stock chart on MarketBeat

Shares of BYND recently experienced a notable shift in momentum as the stock broke its long-serving downtrend. Additionally, the stock has reclaimed its 50-day Simple Moving Average (SMA) and experienced a noteworthy uptick in trading volume. This signals that buyers have stepped up, and the supply has dwindled in the short term. 


So, going forward, if the stock can base above the previous resistance and the 50-day SMA, with sustained volume and interest, its chances of progressing further to the upside will increase dramatically. Add to that the large and growing short interest, and the ingredients for a short squeeze appear present. As mentioned, though, if that is to happen, the stock needs to continue to base above the previous resistance, near $8. 

→ Is Gold Really Boring? (From Edge On The Street) (Ad)

Should you invest $1,000 in Beyond Meat right now?

Before you consider Beyond Meat, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Beyond Meat wasn't on the list.

While Beyond Meat currently has a "Strong Sell" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Ten Starter Stocks For Beginners to Buy Now Cover

Just getting into the stock market? These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Beyond Meat (BYND)
0.9717 of 5 stars
$7.33+2.1%N/A-1.88Strong Sell$7.88
Compare These Stocks  Add These Stocks to My Watchlist 

Ryan Hasson

About Ryan Hasson

  • Ry.has7@gmail.com

Contributing Author

Technical Analysis, Momentum Trading, Risk Management

Experience

Ryan Hasson has been a contributing writer for MarketBeat since 2023.

Areas of Expertise

Equity research and analysis, technical analysis and price action, market sentiment and underlying themes, risk management and trading psychology

Education

Bachelor of Commerce in Financial Management

Past Experience

Equities trader, Kershner Trading Group, business analysis consultant, SMB Capital

Zoom International: Business Analysis Consultant.


Featured Articles and Offers

Search Headlines: