Beyond Meat (NASDAQ:BYND) stock was down 1.66% in late afternoon trading on June 18. Shares have been on a roller-coaster ride over the past week. The stock hit an all-time high of $201.88 to start the day but have since shed over $30 in value.
The hype surrounding Beyond Meat has built steadily since its initial public offering. The company is not yet profitable, but there is considerable enthusiasm surrounding meat alternatives. Shifting consumer trends have seen plant-based proteins rise in popularity.
Beyond Meat is one company that is offering an alternative that boasts the same taste as real meat.
Its booming popularity can be felt across retailers and food service companies. This week Beyond Meat said that it will begin offering its Beyond Beef, which is plant-based ground beef, in grocery stores across North America.
Even the most optimistic analysts have seen the stock price blow past price targets. Investors looking to jump in will be paying a heavy premium. Naturally, the stock is now attracting short-seller interest as we move into late June. According to data from IHS Markit as of June 17, short sellers held roughly 3.6 million Beyond Meat shares. This represents 33% of the company’s publicly owned shares.
As of close on June 18, Beyond Meat stock had an RSI of 70. This puts it in technically oversold territory. Excitement over Beyond Meat’s product is understandable, but growth investors should be careful not to burn themselves on an overheated stock this summer.
