by Ian Harvey
October 30, 2019
Beyond Meat reported third-quarter earnings on Monday posting a profit of 6 cents per share on $91.96 million in revenue -- both of which exceeded analysts' estimates -- and lifted its full-year forecast, the security is down 19.6% at $84.61.
However, analysts cut their price targets following results that raised questions about rising competition, slowing growth and higher operational costs. The stock’s lockup expiry also contributed to the weakness.
But, “Stock Options Made Easy Earnings Predictions” members made potential profits of 150% on a PUT Option!
Are you missing out on these profits? Why not join us and benefit as well!
The "meatless" meat company Beyond Meat Inc (NASDAQ: BYND) posted Q3 earnings results after the closing bell Monday, beating on both top and bottom lines for the second-straight quarter: 6 cents per share topped estimates by a penny, while sales of $92 million outperformed the $82.56 million analysts were looking for.
However, BYND lost more than a fifth of its value on Tuesday as analysts cut their price targets following results that raised questions about rising competition, slowing growth and higher operational costs. The stock’s lockup expiry also contributed to the weakness.
At one stage of the day shares were down more than 24%, at $80.10, having closed the previous day at $105.41. The stock price settled at $81.99, down 22.22%, at the close of trading.
Meanwhile “Earnings Predictions” members made 150% on a Options PUT trade!
A NICE PROFIT!
Reasons for the Beyond Meat Stock Slide.....
Beyond Meat CEO Ethan Brown's comments on rising competition in a post-earnings conference call caused analyst’s concerns.
As well, the firm's lock-up period for its early backers has ended, suggesting that early supporters of BYND may be cashing out.
As well, bear notes are taking their toll. So far, four analysts have slashed their price targets. One from Jefferies included a cut of $75 to $115. The consensus 12-month target price of $122.50 still stands at a 44.7% premium to current levels, though.
On the other hand, most analysts in coverage already had a cautious rating on BYND, with six saying it's a "hold" or worse, and only two saying it's a "strong buy."
The Recommended Trade on Beyond Meat.....
The "meatless" meat company Beyond Meat Inc (NASDAQ: BYND) will report earnings after the market closes. The consensus earnings estimate is $0.05 per share on revenue of $77.10 million; and the Whisper number is much the same at $0.06 per share.
Beyond Meat missed the consensus earnings forecast in the last quarter, reporting wider-than-expected losses of 24 cents per share.
Shares of the imitation meat maker regained some ground last Thursday after falling more than 10% for the week and even more over the month.
And analysts see more downside for Beyond Meat. Credit Suisse analyst Robert Moskow lowered the price target on the stock and said increased liquidity and competition are likely to keep the slide going. He maintained a Neutral rating on Beyond Meat and lowered the target price from $174 to $135.
The decision to lower the price target and other recent negativity around Beyond Meat runs contrary to the short-term run of news for the company, Moskow said in a Wednesday note.
**The Option Trade to Consider: Buy the BYND NOV 15 2019 90.000 PUT at approximately $5.00.
This options trade resulted in a 150% potential profit
for our position within a few hours!
Also of note, last week, a "Sharp Paper" trader bought 2,075 of the Beyond Meat November $100 puts. This purchase totaled more than $2.9 million - as the puts were bought for $14 each when Beyond Meat stock was trading for $98.29. These puts hit a high of $20.90 yesterday.
YOU NEED TO BE IN TO PROFIT!
Join us today and see what future trades will be recommended!
Where to now?.
The company's last two earnings reports have resulted in a 17% move lower, followed by a 16% move higher. No matter what happens, there appears to be plenty of movement for further options trades.
Where to now for Beyond Meat?
Will we recommend another options trade on Beyond Meat?
What will “Stock Options Made Easy” advise members to do?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!