Aug. 1, 2019, 9:14 a.m. EDT

Beyond Meat still tops the list of most expensive short plays

Overstock.com, New Age Beverages, and Dillard’s among other costly shorts

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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%  

Don’t miss: Beyond Meat charges $160 for fresh shares, six times the IPO price

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.

/zigman2/quotes/211617595/composite
US : U.S.: Nasdaq
$ 135.26
+6.97 +5.43%
Volume: 2.16M
June 1, 2020 9:50a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.98 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200022359/composite
US : U.S.: Nasdaq
$ 18.66
+0.29 +1.58%
Volume: 240,989
June 1, 2020 9:50a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$740.79 million
Rev. per Employee
$884,268
loading...
/zigman2/quotes/200595917/composite
US : U.S.: Nasdaq
$ 1.48
-0.03 -1.99%
Volume: 195,634
June 1, 2020 9:50a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$139.82 million
Rev. per Employee
$304,998
loading...
/zigman2/quotes/200348006/composite
US : U.S.: NYSE
$ 30.09
+0.07 +0.25%
Volume: 45,633
June 1, 2020 9:49a
P/E Ratio
N/A
Dividend Yield
2.04%
Market Cap
$701.57 million
Rev. per Employee
$162,582
loading...

Emily Bary is a MarketWatch reporter based in New York.

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