BYND Stock Balks at New Rival

Cargill will release a line of plant-based faux-meat products in April

Beyond Meat Inc (NASDAQ:BYND) is spiraling today, down 5.8% to trade at $110.50 following on news that privately held food producer Cargill will launch a line of faux meat products and hamburger patties in April of this year. The company aims to be a direct competitor to Beyond Meat and its sector peer Impossible Foods by offering both soy and pea protein-based meat alternatives and producing private-label products more effectively.

Today's move puts BYND back below its 30-day moving average, which has provided recent support, for the first time since its early January lows. As we mentioned last week, the equity is still consolidating below its newly formed 160-day moving average. Despite this recent resistance, the security is still up roughly 46% for the year.

Most analysts are still skeptical of Beyond Meat with 11 in coverage giving it a "hold" or worse rating, while only two call it a "strong buy." Plus, the consensus 12-month price target of $107.05 is a 3.9% discount to last night's close.

While short interest fell 24.7% in the last reporting period, short sellers are still firmly in control. In fact, the 8.91 million shares sold short represent a hefty 34.9% of the stock's available float.