What's Going On With Beyond Meat Stock Thursday?

Beyond Meat Inc BYND shares are trading lower Thursday following a report suggesting the company's liquidity position has weakened.

What To Know: After the market close on Wednesday, a Wall Street Journal report surfaced indicating Beyond Meat reached out to a group of bondholders to start discussions about a potential restructuring of its balance sheet. Beyond Meat shares immediately began moving lower.

People familiar with the matter reportedly said the group of bondholders own some of Beyond Meat's $1.1 billion of convertible notes and are working with law firm Akin Gump Strauss Hauer & Feld on the matter. 

Beyond Meat shares have been largely trending lower since the summer of 2021 as the company continues to burn through cash. The plant-based meat company had $173.5 million in cash and cash equivalents as of March 30.

In Beyond Meat's most recent earnings report, the company noted its operating environment continued to be affected by uncertainty related to macroeconomic issues including "ongoing, further weakened demand in the plant-based meat category."

Beyond Meat is due to report earnings again in early August. According to estimates from Benzinga Pro, analysts are anticipating a loss of 51 cents per share and revenue of $87.808 million.

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How To Buy BYND Stock

By now you're likely curious about how to participate in the market for Beyond Meat – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. In the case of Beyond Meat, which is trading at $7.17 as of publishing time, $100 would buy you 13.95 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

BYND Price Action: Beyond Meat shares were down 13.3% at $6.22 at the time of writing Thursday, according to Benzinga Pro.

Photo: courtesy of Beyond Meat.