Beyond Meat (BYND) stock more than doubled in intraday trading as the company’s extended partnership with Walmart (WMT) continued to drive retail investors to the plant-based meat company.
However, beneath the surface of this incredible rally are lingering concerns, including ones related to the management’s recently announced senior convertible notes offering.
That’s why individual traders have already started pulling out of BYND shares – which now look on course to end the trading session in the red.
Beyond Meat opted for a debt-to-equity swap last week that reduced its $800 million debt burden.
But it came at a steep cost of issuing more than 300 million new shares – representing a staggering 413% increase in the company’s overall share count.
This massive dilution fundamentally alters BYND’s capital structure and negatively affect existing shareholders’ ownership stakes.
Following the convertible notes offering, therefore, a senior TD Cowen analyst, Robert Moskow, reiterated his “Sell” rating on BYND stock and slashed his price target further to $0.80 only.
Moskow’s revised forecast suggests Beyond Meat shares could crash another 80% from here.
Serious investors should stay far away from the retail frenzy in BYND shares mostly because the company is yet to resolve its fundamental challenges.
Beyond Meat continues to face declining sales – with revenue down nearly 5% in 2024 – alongside persistent operating losses and weak demand for plant-based meat alternatives.
The plant-based meat industry as a whole has faced significant headwinds, with several competitors struggling as market demand has softened. Plus, BYND is both a meme and penny stock, which should serve as a major red flag for long-term investors.
In short, the combination of shareholder dilution and deteriorating financials suggest Beyond Meat shares are a very high-risk investment heading into 2026.
Wall Street firms also recommend steering clear of BYND stock amid the ongoing volatility.
According to Barchart, the consensus rating on Beyond Meat stock remains at “Moderate Sell” with the mean target of $2.33 indicating over 30% downside from here.
