Beyond Meat Stocks Plunge After Secondary Offerings

Stocks of the Los Angeles-based company, Beyond Meat, went tumbling down in today’s trading. Last week on Wednesday afternoon the company released its secondary offering of shares at $160.

Beyond Meat stocks or BYND dived 8.36% or 14.70 points. Beyond Meat Inc is planning to sell an estimated 3.25 million stocks at around $160.

The plan will supposedly pull in a massive half a billion dollars or $520 million for its early investors, executives and employees. The 250,00 stocks all came from Beyond Meat’s stakeholders, who will likely make $480 million.

Last May, Beyond Meat stocks were sold around $25 a piece in its first initial public offering. However, the recent surge in demand for company shares has sent stock prices soaring.

Just last week, Beyond Meat stocks were sold for a whopping $234.90 apiece on Friday. But shares have lowered down to $161.24.

On Monday afternoon, BYND announced that the sales have grown four-times larger than last year. The company reported a second-quarter loss of $9.4 million, declining 24 cents per stock.

Stocks struggled in the after-hours after the release of the report to the public.

The Future for Beyond Meat

Beyond Meat burgers have become more and more popular with consumers, vegan or not. According to research, a huge number of people who bought vegan burgers were not even vegetarians.

The popularity of the plant-based meat substitute has attracted investors who are piling up for Beyond Meat stocks.

The company has recorded a 10% growth in Beyond Meat burger sales in 2019. Food and beverages investors are comparing to the popularity of beef and meat burgers.

The sudden spur in vegan burger demands is better against the flat growth of meat-based burgers. The growth of the meat-alternatives can be attributed to the moves of major fast-food chains like Burger King jumping in on the popularity.

Analysts are expecting for a positive outlook for plant-based producing companies such as Beyond Meat as more consumers are starting to patronize vegan products.