Reuters / Brendan McDermid
- A rash of Wall Street analysts have lowered their price targets on Beyond Meat following the expiration of its post-initial public offering lockup period on Tuesday.
- That means roughly 48 million more shares are now available to trade.
- Through Monday, Beyond Meat’s stock had surged 322% from its IPO price.
- The shares fell as much as 24% on Tuesday amid the expiry.
- Watch Beyond Meat trade live on Markets Insider.
Beyond Meat’s post-initial public offering lockup period expiration date is upon us. That means early investors and corporate insiders are able to cash in shares for the first time.
It’s been a long time coming for those in possession of locked-up shares. The watched helplessly – unable to sell – as Beyond Meat shares skyrocketed as much as 840% in just under three months after going public. Luckily for them, the stock was still up 322% through Monday, leaving it ripe for profit-taking.
And insiders seem to have taken advantage. Shares of the plant-based alternative meat company declined as much as 24% on Tuesday.
A rash of Wall Street price target downgrades fueled the fire, even after Beyond Meat reported better-than-expected third-quarter earnings on Monday. The report showed that the company earned a profit for the first time as a public entity, even going as far as to boost its full-year 2019 revenue guidance.
But, given that roughly 48 million shares – or 75% of Beyond’s shares outstanding – hit the market Tuesday, analysts are wary of the downward pressure it will have on the stock, especially given its torrid post-IPO returns.
“We expect further volatility in Beyond Meat’s stock price as more public float becomes available after the lock-up expires,” wrote Alexia Howard of Bernstein in a note Monday.
Here’s a rundown of six Wall Street price-target cuts levied on Beyond Meat:
DA Davidson
Hollis Johnson/Business Insider
Rating: Underperform
Price Target: $84 from $130
Wells Fargo
Irene Jiang / Business Insider
Rating: Market perform
Price Target: $100 from $125
Bernstein
Hollis Johnson/Business Insider
Rating: Market perform
Price Target: $106 from $130
Jefferies
Hollis Johnson/Business Insider
Rating: Hold
Price Target: $115 from $190
Credit Suisse
Hollis Johnson/Business Insider
Rating: Neutral
Price Target: $135 from $174 (Oct. 23)
JPMorgan
Hollis Johnson/Business Insider
Rating: Overweight
Price Target: $138 from $189
