The short vendors aimed to have a party with the plant-based protein firm Beyond Meat.
According to analyst firm S3 Partners, Beyond Meat is currently one of the most declining stocks on the market. Short positions account for 37 percent of the company’s freely traded shares, the highest among the shares included in the Russell 1000 index.
That ratio rose to 26 percent in October, according to Acesparks. Investors have stepped up bets against Beyond Meat, worried about declining sales and a declining pace for plant-based meat producers.
Beyond Meat did not immediately respond to a request for comment on the trend.
Beyond Meat shares have fallen more than 30 percent since October, when the company cut its third-quarter earnings outlook. At the time, the company spoke of the negative consequences of the COVID-19 pandemic, delayed shipments and ongoing labor shortages.
Beyond Meat shares have fallen more than 40 percent in the past 12 months.
Shares of Beyond Meat fell sharply in November after the company reported losses of more than $ 54.8 million in the quarter and sales were lower than Wall Street expected.
According to Jim Chanos, a noted short seller, the slowdown in sales growth is the main reason for the increase in bets against Beyond Meat.
According to Chanos Financial Times, investors expected an improvement in the number of plant-based meat companies as they became more consumer-friendly.
“The problem with the Beyond Meat case is that it stopped,” Chanos said. “It’s the opposite of truth and hope.”
Beyond Meat has continued to form new partnerships in recent months. This week, KFC added a limited amount of plant-based “In addition to Roast Chicken” to its menu.