10 Worst ADR Stocks To Buy According to Short Sellers

6. Tecnoglass (NYSE:TGLS)  

Short Interest as % of Shares Outstanding: 16.24%  

Number of Hedge Fund Investors in Q2 2024: 16

Tecnoglass (NYSE:TGLS) based in Colombia, is a leading manufacturer of architectural glass, windows, and aluminum products serving the global residential and commercial construction industries. The company operates one of the largest and most integrated glass and aluminum manufacturing complexes in the world and is well-known for its high-quality, energy-efficient products, including tempered, laminated, insulated, and low-emissivity glass solutions. Tecnoglass (NYSE:TGLS) has expanded its geographical footprint, particularly in the U.S. market, where it derives over 90% of its revenues, with Florida being one of its key markets.

As of Q2, Tecnoglass (NYSE:TGLS) has a backlog of almost $1 billion. The backlog has been growing consistently since 2021, and the company expects this momentum to continue, with a book-to-bill ratio standing at 1.5 times. This backlog provides the company a promising revenue through 2025 and into 2026. Moreover, the company is expanding beyond Florida by opening new showrooms and is improving its brand recognition and demand for its products.

Tecnoglass (NYSE:TGLS) is also expanding into the vinyl market which has contributed meaningfully to the company’s single-family residential revenues by expanding its dealer base and offering innovative products such as impact-resistant and energy-efficient vinyl solutions. The company expects to ramp up its vinyl business further in the second half of 2024.

Despite 16.24% of shares being shorted, 16 hedge funds showed a bullish stance on Tecnoglass’ (NYSE:TGLS) stock as of the second quarter. Owls Nest Partners is the largest shareholder in the company, holding $38.95 million worth of stock as of June 30.