20 Underperforming Stocks Targeted By Short Sellers

17. MGP Ingredients, Inc. (NASDAQ:MGPI)

Short interest: 14.59%

6 months’ performance: -50.26%

MGP Ingredients, Inc. operates as a supplier and producer of branded spirits, distilled spirits, and food ingredients. The company generates its revenue through Ingredient Solutions, Distillery Solutions, and Branded Spirits segments.

The US spirits industry has gone through challenges in 2024. According to The Distilled Spirits Council of the United States, increased spending on essentials like healthcare and housing, and poor sales performance of super premium liquors, drove the decline.

The company experienced headwinds last year with a 16% revenue decline. However, MGPI managed to slightly enhance its gross margins to 41% from 39.6%. Based on the guidance, 2025 seems to be another challenging year with an expected revenue decline of approximately 20%!

Although the firm is less vulnerable to tariff impacts due to its limited exposure to international sales, the little possible impact cannot be neglected when the company is already struggling. Shifting consumer preferences mainly among youngsters also pose long-term challenges for the overall industry.