Beyond Meat's 800% Stock Rise Means Insiders Can Cash Out Big In Secondary Share Sale

After a strong report coming out of the first financial quarter, Beyond Meat is now encouraging some major stockholders to sell for a big return.

Coming out of their first financial quarter since going public in May, Beyond Meat’s stock had skyrocketed more than 800% from $25 a share to well over $200 a share. And while the company is in a similar camp as Netflix by operating at a perpetual loss, it has continued to grow as one of the top “meat alternative” companies currently operating.

But considering how well their stock has performed, Beyond Meat has opened the door for major investors to make a decent return on their initial investment.

Beyond Meat announced Monday it would be holding a secondary share sale that would allow early investors to sell some of their stocks. This allows early investors to make a profit off their initial investment without being held up by lock-up period that prevents insiders from selling after the initial sale.

“Typically, very early follow-ons occur when the price has risen a lot, increasing the public float at a time when there aren’t a lot of shares available to investors,” IPO Expert and University of Florida’s Warrington College of Business professor Jay Ritter said. “The company and selling shareholders are happy to take advantage of investor optimism, and investors like the increased liquidity.”

It also ensures a return for those investors in the off chance there is a surprising downturn in the value of Beyond Meat’s shares. Wall Street analysts had brought up concerns about the long-term investment value of Beyond Meat and even fear it could be the next bitcoin due to its volatility.