Beyond Meat, Inc (NASDAQ:BYND) was plummeting over 14% lower on Wednesday as the plant-based meat producer headed into its first-quarter earnings.
After Beyond Meat printed its fourth-quarter earnings miss on Feb. 24, the stock opened lower the following day and fell about 13% over the 11 trading days that followed. For that quarter, Beyond Meat reported a loss of 34 cents per share on revenues of $101.9 million, which missed the consensus estimate of a loss of 13 cents per share on revenues of $103.2 million.
For the first quarter, analysts estimate Beyond Meat will report a loss of $1.01 per share on revenues of $112.4 million.
On May 3, Mizuho maintained a Neutral rating on the stock and lowered its price target to $35. The new target price suggests about a 32% increase from the current share price.
From a technical analysis standpoint, Beyond Meat’s stock appears headed for at least a bounce. Of course, holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat. Options traders, particularly those who are holding close dated calls or puts, take on extra risk because the intuitions writing the options increase premiums to account for implied volatility.
The implied move for options of Beyond Meat expiring this week is 19.16%.
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The Beyond Meat Chart: Beyond Meat has been trading in a fairly consistent downtrend Since June 30, 2021 when the stock topped out at the $160.28. Beyond Meat’s most recent lower high was created at the $41.95 level on May 4 and the most recent confirmed lower low was printed on April 27 and $35.41.
If Beyond Meat closes the trading session near its low-of-day price, the stock will print a bearish Marubozu candlestick, which could indicate lower prices will come again on Thursday. If the stock rises up to close the trading session near to flat, it will print a doji candlestick, which could indicate the next lower low is confirmed, and the stock will bounce up higher on Thursday.
A bounce to the upside is likely to come over the next few days because Beyond Meat’s relative strength index (RSI) is measuring in at about 30%. When a stock’s RSI falls to that level, it becomes oversold, which can be a buy signal for technical traders.
Beyond Meat has resistance above at $35.41 and $40.99. There is no support below the all-time low in terms of price history.
