Shares of Beyond Meat jumped nearly 10% Monday, near its all-time high, on investor optimism ahead of its earnings.
At the beginning of May, the maker of plant-based meats priced its initial public offering at $25 per share. Since then, the company's stock is up around 680%, giving it a market value of about $12 billion. It hit an all-time high of $201.88 on June 18. On Monday, the stock closed up 9.9% to $194.20.
On Friday evening, Barron's highlighted an options strategy for investors looking to cash in on Beyond's stock volatility when it reports earnings. Options give buyers the right to buy or sell Beyond shares at an agreed-upon price and date.
Beyond is scheduled to report its second-quarter results next Monday. Analysts surveyed by Refinitiv are expecting the maker of plant-based meats to report it had a loss of 8 cents per share and revenue of $52.7 million.
Short sellers have also taken an interest in Beyond's hot streak. An investor who wants to short a stock borrows shares then sells them, betting that the price will drop by the time the borrowed shares must be returned. Last time Beyond reported earnings, its stock soared as high as 23% in extended trading, and short sellers lost big on their bets.
The market for imitation meats has been growing as more consumers look to reduce their meat intake. Eighteen percent of Americans are trying to eat less meat, according to the NPD Group.
In response, restaurants have been adding products from Beyond Meat and its rival Impossible Foods to their menu. After rolling out breakfast sandwiches made with Beyond Sausage, Restaurant Brands International's Tim Hortons added the Beyond Burger to its menu — its first burger ever. Blue Apron is adding Beyond products to its meal kits as it struggles to attract loyal subscribers.