Beyond Meat shares hit record high as faux-meat maker’s forecast tops estimates
Stock has gained more than 400% from its initial public offering price of $25 in May
Beyond Meat shares rose as much as 36 per cent on Friday to $135.80. Photograph: Reuters
Beyond Meat shares soared to a record on Friday after the faux-meat maker’s forecast for annual sales topped estimates.
Analysts are putting their faith in management’s comment that the company is being “very conservative” in its projections, and that the sales outlook doesn’t include foodservice customers until they are past the testing phase. This served as a green light for analysts to raise their revenue estimates above the IPO darling’s target.
Shares rose as much as 36 per cent on Friday to $135.80 (€119.80) each, a record high. The stock has gained more than 400 per cent from its May 1st initial public offering price of $25 (€22).
The non-stop rally, however, has frustrated short sellers, who are trading in 34 per cent of the stock’s limited float, which represents 19 per cent of the shares outstanding. The shorts were down $155 million (€137 million) in mark-to-market losses Friday, bringing their losses to $321 (€283) since trading began, according to financial analytics firm S3 Partners.