Beyond Meat Short Interest Exceeds 100% of Public Shares, Ortex Reports
Short interest in Beyond Meat’s shares has surged significantly, exceeding 100% of its publicly available shares, according to data from Ortex. As of Thursday, approximately 109% of the company’s free float shares were shorted, a substantial increase from 81.8% on the previous day.
Market Reactions to Beyond Meat
Beyond Meat’s stock experienced a dramatic increase of over 112% in the last trading session. However, it later closed slightly lower amidst volatile trading patterns, ultimately finishing down 5.6% at $3.37. This fluctuation is largely attributed to retail investors actively trading the heavily shorted stock.
Understanding Short Selling
- Short selling involves investors borrowing shares and selling them, with the intention of repurchasing at a lower price.
- Short interest can surpass 100% of a stock’s free float due to the re-lending of borrowed shares.
- This allows multiple investors to short the same stock.
Historical Context
This situation mirrors the extraordinary short interest observed during the GameStop incident, which reached around 140% in January 2021. Such occurrences illustrate how market mechanics and derivatives can amplify short exposure beyond the available shares for public trading.
Future Implications for Beyond Meat
Ortex indicates that the percentage of shares shorted for Beyond Meat may fluctuate as new shares are released into the market. Although the total number of shares shorted will remain unchanged, market conditions could vary. Additionally, Beyond Meat recently announced the expiration of lock-up restrictions on over 316 million shares related to a convertible notes offering, effective from October 16.
This development could impact the stock’s performance as market dynamics evolve.
