Beyond Meat (NASDAQ:BYND) has had a dramatic past few months since it went public in May. BYND stock price when it went public was $25.
In the last five months, it has surged to $240 and then dropped briefly below $100. Growing concerns regarding insider selling have overshadowed anticipated earnings next week. On Thursday, the stock started gaining some ground, having dropped 10% this week.
Q3 Earnings on October 28
For now, the turbulent times from Beyond Meat stock do not seem to be over ahead of its Q3 earnings report. The company will report its Q3 earnings on October 28, and it expects to triple its YoY revenue. This is because of increasing partnerships with restaurants and retailers. The company expects to increase its sales guidance to around $20 million, reflecting strong sales trends.
The company entered some significant contract agreements, including one with McDonald’s (NYSE:MCD). The contracts present a huge potential for Beyond Meat to sustain its fast growth. Equally, Dunkin Brands Group Inc. (NASDAQ:DNKN) is launching its breakfast sandwiches using Beyond Meat, making for yet another huge prospect for the plant-based company.
At the time of writing, BYND stock is down 2.66% at $98.90.
Insiders will Soon Begin Selling Their Shares
There will be increased liquidity of Beyond Meat shares following the expiry of the lockup period. Insiders may start selling their shares from October 29, which will put Beyond Meat stock under a lot of selling pressure.
As the lockup expiry approaches, there is a possibility of strong selling pressure, and this will override the anticipated impressive Q3 earnings. Going forward, it is likely that Beyond Meat stock will be trading wildly in response to major events because they have significant long-term impact.
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However, despite the current volatility, the long-term prospects of the stock are much more compelling. The plant-based meat segment has significant potential despite being around 1% of the animal meat market globally. As the market grows, Beyond Meat, which is in a leading position, will most likely reap big. What do you think?
BYND stock has tumbled almost 60% from its all-time high.
Featured image: DepositPhotos © steveheap
