Beyond Meat (BYND) is one of the most expensive stocks to short as the borrowing fees are more than 100%. The cost of shorting the producer of plant-based meat substitutes can be almost double the cost of shorting other stocks.
The stock price for Beyond Meat has risen by more than 300% since its IPO in May, 2019, though the company has yet to make a profit. Many investors are bearish on the company.
So far, most short sellers have gotten crushed. But they continue to look for the chance to bet against the high-flying stock. With borrowing costs so high, short sellers can have a hard time profiting even if the stock drops in value.
Much of Beyond Meat’s stock is in the hands of internal holders or non-lending retail investors. Short sellers are hoping that more stock will become available for lending when the 180-day lockup period expires in October, 2019.
There is speculation that traders may have been overcharged by their broker-dealers for shorting Beyond Meat.
Did your broker-dealer overcharge you for shorting Beyond Meat (BYND)?
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