Quick-sellers are aiming to feast on plant-based protein firm Beyond Meat.
Past Meat at present ranks as one of many most-shorted shares available on the market, in keeping with information from analytics agency S3 Companions. Quick positions account for 37 % of the corporate’s freely traded shares, the best ratio amongst shares included within the Russell 1000 Index.
The ratio has elevated from 26 % in October, Bloomberg reported. Buyers have elevated guess in opposition to Past Meat over issues a few downtick in gross sales and sagging momentum for plant-based meat producers.
Past Meat didn’t instantly reply to a request for touch upon the pattern.
Shares of Past Meat have fallen greater than 30 % since October, when the corporate slashed its third-quarter income outlook. On the time, the corporate cited the damaging results of the COVID-19 pandemic, delayed shipments and an ongoing labor scarcity.
During the last 12 months, shares of Past Meat have fallen greater than 40 %.
In November, Past Meat’s inventory plummeted after the corporate reported a wider-than-expected quarterly loss $54.8 million, and gross sales that fell in need of Wall Road’s expectations.
The slowdown in gross sales progress is a key motive for the rise in bets in opposition to Past Meat, in keeping with famous short-seller Jim Chanos.
Chanos advised the Financial Times that traders have anticipated enhancing numbers from plant-based meat corporations as they’ve gained acceptable with shoppers.
“The issue in Past Meat’s case is that it’s stopped being the case,” Chanos mentioned. “It’s a juxtaposition of the truth versus the hope.”
Past Meat has continued rolling out new partnerships in latest months. This week, KFC added plant-based “Beyond Fried Chicken” to its menu on a restricted foundation.