MGP Ingredients, Inc. (MGPI): One of the Underperforming Stocks Targeted By Short Sellers

Jabran Kundi

Wed, May 14, 2025, 11:40 AM 3 min read

We precocious published a database of 20 Underperforming Stocks Targeted By Short Sellers. In this article, we are going to instrumentality a look astatine wherever MGP Ingredients, Inc. (NASDAQ:MGPI) stands against different underperforming stocks targeted by abbreviated sellers.

Short involvement refers to the percent of publically disposable shares that person been sold short. It is an indicator utilized by galore investors to find however beardown a company’s carnivore thesis whitethorn be. Due to the quality of abbreviated selling, the abbreviated involvement has go a fashionable indicator among investors.

The crushed it is fixed truthful overmuch weightage is that radical betting against a banal person usually done coagulated probe and are assured of a company’s downfall. They instrumentality unlimited risk, truthful erstwhile large investors oregon the astute wealth shorts a stock, radical instrumentality notice. They effort to unearth the reddish flags that whitethorn person prompted the precocious abbreviated interest.

We decided to excavation deeper and effort to find retired wherever astute wealth sees occupation ahead. To travel up with our database of 20 underperforming stocks targeted by abbreviated sellers, we looked astatine the worst-performing stocks of the past six months and past ranked them by the abbreviated interest.

A close-up of an iconic vessel of branded tone produced by the distillery.

Short interest: 14.59%

6 months’ performance: -50.26%

MGP Ingredients, Inc. (NASDAQ:MGPI) operates arsenic a supplier and shaper of branded spirits, distilled spirits, and nutrient ingredients. The institution generates its gross done Ingredient Solutions, Distillery Solutions, and Branded Spirits segments.

The US spirits manufacture has gone done challenges successful 2024. According to The Distilled Spirits Council of the United States, accrued spending connected essentials similar healthcare and housing, and mediocre income show of ace premium liquors, drove the decline.

The institution experienced headwinds past twelvemonth with a 16% gross decline. However, MGP Ingredients, Inc. (NASDAQ:MGPI) managed to somewhat heighten its gross margins to 41% from 39.6%. Based connected the guidance, 2025 seems to beryllium different challenging twelvemonth with an expected gross diminution of astir 20%!

Although the steadfast is little susceptible to tariff impacts owed to its constricted vulnerability to planetary sales, the small imaginable interaction cannot beryllium neglected erstwhile the institution is already struggling. Shifting user preferences chiefly among youngsters besides airs semipermanent challenges for the wide industry.

Overall, MGPI ranks 17th connected our database of underperforming stocks targeted by abbreviated sellers. While we admit the imaginable of MGPI arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter clip frame. There is an AI banal that went up since the opening of 2025, portion fashionable AI stocks mislaid astir 25%. If you are looking for an AI banal that is much promising than MGPI but that trades astatine little than 5 times its earnings, cheque retired our study astir this cheapest AI stock.