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(Bloomberg) – Shares of Beyond Meat Inc. closed at their highest price, but short sellers were burned to half a billion dollars.
Shares rose 12% to $ 169.96 on Monday, extending the nearly 600% price increase since its IPO last month. It has cost $ 560 million in market value losses to short sellers since the IPO, of which $ 97.5 million just for this session, said Ihor Dusaniwsky, chief executive of the company. 39, predictive analysis to the company's financial analysis S3 Partners. According to S3, bearish bets in fake meat amount to $ 799 million, of which 5.3 million shares were sold short.
"We still do not see any size shorts today, as all shorts coming out of their positions are being replaced by new shorts," wrote Dusaniwsky. "The first brokers recycle the equity loans they have in their books. Only the names of short sellers change. "
Manufacturers of real meat, such as Tyson Foods Inc. and Pilgrim's Pride Corp., are also burned as the barbeque season begins this week and Beyond Meat starts sales of its herbal product "Beyond Beef" Which looks like ground beef.
Tyson shares fell 4.1%, while those of Pilgrim's Pride fell 3.8%. Sanderson Farms Inc. fell 7.5%, the largest decline in 18 months.
With its own vegetable hamburger in preparation, Tyson has been the only one to outperform among "protein" names since Beyond's IPO on May 1st. Tyson's shares have increased by 5% since then, as feed costs are weighing on chicken farmers.
(Adds the closing of negotiations from the first paragraph, comment S3 to third.)
– With the help of Lydia Mulvany, James Attwood, Bailey Lipschultz and Catherine Larkin.
To contact the reporters on this story: Cristin Flanagan in New York at [email protected] Janet at Freund in New York at [email protected]
To contact the editors responsible for this story: Catherine Larkin at [email protected], Morwenna Coniam, Scott Schnipper
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