Beyond Meat Inc (NASDAQ:BYND) shares surged 50% in early trading on Monday despite no announcement from the company.
The stock price move appears to be a classic short squeeze, in which short sellers who borrowed the company’s shares to sell them (in hopes of repurchasing those shares at a lower price) are forced to quickly buy the stock back as the price rises, to limit potential losses.
Beyond Meat is one of the most-shorted stocks in the US, with its short interest at 64% of its total shares available for trading.
The company’s stock had dropped more than 50% in the days after Beyond Meat announced a debt restructuring on October 13, in which 316 million new shares would be issued to bondholders.
Beyond Meat produces plant-based meat substitutes intended to mimic the taste, texture, and sensory attributes of meat from animals.
The company’s second quarter revenue fell 20% year-over-year to $75 million, missing analyst forecasts.
Beyond Meat also withdrew its full-year guidance.