Beyond Meat (NASDAQ:BYND) stock is surging today, possibly due to increasing short interest. After a difficult month and a week of very little growth, this unstable meme stock is finally on a hot streak. As of this writing, it is up more than 21% for the day, and the company hasn’t reported any positive news.
That strongly suggests that BYND stock is a likely short squeeze candidate, as does its rising percentage of short interest. For weeks, experts have speculated that Beyond Meat could be an easy target for short sellers, but now data indicates that the actual squeeze could begin soon.
What’s Happening With BYND Stock
Despite its recent struggles, Beyond Meat kicked off May 2023 on a positive note. It reported better-than-expected Q1 earnings, beating expectations for both revenue and earnings-per-share. Granted, Wall Street is highly bearish on BYND stock. The analyst consensus on TipRanks currently rates it as a “moderate sell” with no buy ratings. However, shares quickly fell and, since then, have only risen on the superficial interest generated by short interest.
As noted, Beyond Meat has been on the short-squeeze radar for months. It headed into March 2023 with one of the market’s highest short-interest percentages. However, as Seeking Alpha reports, “short interest on the plant-based food seller is at 43.19% of total float, which is a higher level than just a week ago.” Market analysis platform Fintel confirms this and gives BYND stock a short squeeze score of 84.72 out of 100. Additionally, as of one hour ago, there are currently zero shares available to short at Fintel’s “leading prime brokerage.” Investors currently have 15.08 days to cover their short positions.
This suggests that the chances of a short squeeze in BYND stock are certainly increasing. However, that doesn’t mean that the stock is a good buy or that it offers investors any long-term growth potential. However, at present, it seems that a Beyond Meat short squeeze is a likely possibility.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.