/Beyond Meat plunges 24% as post-IPO lockup expires

Beyond Meat plunges 24% as post-IPO lockup expires


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


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