By Emily Bary
Reuters/Courtesy of Beyond Meat
Shorting Beyond Meat Inc. remains a costly proposition as borrowing fees remain the highest among all domestic stocks.
Bears currently incur a borrowing rate well upwards of 100% on Beyond Meat shares /zigman2/quotes/211617595/composite BYND +5.43% , according to S3 Partners, nearly double what they must pay to short the next most expensive name, Overstock.com Inc. /zigman2/quotes/200022359/composite OSTK +1.58%
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S3’s Ihor Dusaniwsky provided a list of the most expensive short plays as of earlier in the week according to their offer rates, or the market rate that short sellers must pay to borrow the stock. Among the other top names are New Age Beverages Corp. /zigman2/quotes/200595917/composite NBEV -1.99% , which is venturing into CBD, and Dillard’s Inc. /zigman2/quotes/200348006/composite DDS +0.25%
|Company||Short Interest||Offer Rate|
|Beyond Meat Inc.||$1.16 billion||138%|
|Overstock.com Inc.||$395 million||69%|
|Intelligent Systems Corp.||$55 million||68%|
|Pareteum Corp.||$77 million||58%|
|Turtle Beach Corp.||$57 million||40%|
|Plug Power Inc.||$105 million||38%|
|New Age Beverages Corp.||$80 million||34%|
|Accelerate Diagnostics Inc.||$299 million||33%|
|Dillard’s Inc.||$631 million||33%|
|Health Insurance Innovations Inc.||$159 million||28%|
Short sellers have been unable to get involved in the market recently, according to Dusaniwsky, due to a lack of stock-loan supply.
“Shorts are currently paying $3.6 million in total stock borrow costs every day, and if rates double, short sellers would be taking over $7 million a day in stock loan expenses eating away at their alpha,” he said. “High stock loan costs, sizeable amount of recalls hitting the street daily and Beyond’s stock price rallying once again is a recipe for a short squeeze.”
See also: Beyond Meat tells SEC it has a good reason for no longer disclosing what proportion of its sales are rung up at Whole Foods
Beyond Meat’s stock is up nearly 700% from its $25 IPO price.