Beyond Meat stock price values the company at $10.6 billion. The company did $165.2 million in sales last year.

The stock is up 800% from its IPO price.

Now Beyond Meat is giving insiders a quick way to cash out after their 800% gain. Beyond Meat says existing investors will be selling 3 million shares in a secondary offering even though the IPO was less than three months ago. Beyond Meat will sell an additional 250,000 shares to raise cash for investing in its operations.

That violates the spirit of the IPO lock-up rule that prohibits insiders from selling within six months of the IPO.

Not everyone likes that Beyond Meat is basically cheating the system by giving insiders a workaround the SEC IPO lock-up rule. Somebody ran $51 million worth of sell orders through the dark pool on Friday.

Check out this intra-day chart of BYND stock with the dark pool flow to the right:

Dark pool activity looks like selling.

The dark pool action on Friday, August 2, 2019, looks like selling from one large player as the three block sizes are all 100,000 and valued at roughly $17 million each for a total of $51 million. Even the green volume candle at the end-of-day looks like selling as the stock price immediately dropped after the trade. However, there was selling across the entire market on Friday so it’s too early to establish if this will be a trend of large investors using dark pools to quietly reduce their exposure to BYND stock.

The options flow in Beyond Meat was actually bullish on Friday, August 2, 2019:

There was a total of 34 call contracts bought at or above the ask for a total inflow of $1.24 million. I wonder if the traders that bought these call options on Friday, August 2, 2019, know that a large investor sold $51 million worth of stock over the dark pool? Probably not.

BYND stock trades with a Forward P/E of 1581.34. Overvalued stocks like BYND are going to get hit hard when a stock market correction finally does hit. I think insiders at Beyond Meat know this which is why they are giving some insiders a way to get out of the stock early, before the IPO lock-up period ends in November.

Beyond Meat In the News