Beyond Meat (BYND) stock took a beating on Monday after the plant-based alternative meat company announced results from its exchange offer with holders of its 0% Convertible Senior Notes due 2027. Under the terms of this deal, the company will exchange these notes for a pro rata portion of up to $202.5 million in aggregate principal amount of its new 7.00% Convertible Senior Secured Second Lien PIK Toggle Notes due 2030, as well as up to 326,190,370 shares of BYND stock.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Beyond Meat President and CEO Ethan Brown said, “We are pleased to announce this Early Settlement of the Exchange Offer for our Existing Convertible Notes, which marks a meaningful next step towards our goal of reducing leverage and extending debt maturity for Beyond Meat.”
However, investors appear displeased by this news; if today’s stock movement is anything to go by. That makes sense, as the company has announced a massive dilution of BYND stock with its plan to issue more than 326 million in new shares as part of the exchange offer. Dilution of shares is often a trigger for stock price drops, and that holds true today.
Beyond Meat Stock Movement Today
Beyond Meat stock was down 52.74% on Monday, extending a 76.39% fall year-to-date. The shares have also dropped 69.68% over the past 12 months. Today’s news came with increased trading activity, as some 5.1 million shares changed hands. The company’s trading volume is about to catch up to its three-month daily average of roughly 6.83 million, despite markets only just opening.
Is Beyond Meat Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Beyond Meat is Moderate Sell, based on three Hold and five Sell ratings over the past three months. With that comes an average BYND stock price target of $2.50, representing a potential upside of 157.73%.
