Some of the original investors in analogue-meat processor Beyond Meat are rushing for the exits, looking to cash in their stock, which dropped 17% in one day.
Original investors, who held some 80% of Beyond Meat’s stock, were restricted from selling within six months of the initial public offering. CNBC reports that as soon as that ban expired on Oct. 29, many of the original investors cashed in. That rush drove the stock down 17% that day and 63% from its high of $234.90 in late July.
Analysts said the decline in the stock’s price were largely driven by anticipation that shareholders would seek to lock in their spectacular gains; the stock’s peak was a 411% increase over its opening price of $46. Among those selling off stock were General Mills, which owned 164,000 shares. However, former and current board members with large stakes told CNBC they would hold onto their shares.
Beyond Meat is being affected by increased competition in plant-based analogue meat, especially from Impossible Foods, which has landed several big foodservice contracts and is beginning to move into retail.