10 Worst ADR Stocks To Buy According to Short Sellers

3. ZIM Shipping (NYSE:ZIM)  

Short Interest as % of Shares Outstanding: 17.00%

Number of Hedge Fund Investors in Q2 2024: 26

ZIM Shipping (NYSE:ZIM) is a global container shipping company headquartered in Israel. The company operates one of the largest shipping networks in the world provides a full range of shipping solutions in over 90 countries and serves more than 32,000 customers in approximately 300 ports around the world. ZIM Shipping (NYSE:ZIM) specializes in containerized cargo using modern and environmentally friendly LNG-powered vessels.

ZIM Shipping (NYSE:ZIM) is optimizing its operations by replacing older, less efficient chartered vessels with larger, new-builds through its fleet renewal program, which saw the delivery of 38 out of the 46 new-build container ships. These new vessels are powered by liquefied natural gas (LNG) making them modern, fuel-efficient, and better suited to the company’s trade routes. This transition to newer vessels is helping the company to reduce costs, improve fuel efficiency, and increase its competitiveness in the market. In Q2, ZIM Shipping’s (NYSE:ZIM) carried volume increased to 952,000 TEU, marking an 11.7% increase compared to the same quarter last year and a 13% increase compared to the first quarter of 2024.

The company now operates a fleet of 148 vessels, including 132 container ships and 16 car carriers, with a total capacity of approximately 755,000 TEUs and saw a 40% year-over-year increase in average freight rates, which stood at $1,674 per TEU for Q2. ZIM Shipping‘s(NYSE:ZIM) overall revenues also saw substantial growth, with the company reporting $3.5 billion in total revenues for the first half of 2024, a 30% year-over-year increase.

While 17% of the company’s shares are shorted, 26 hedge funds have maintained a bullish sentiment on the stock as of the second quarter, with stocks worth $455.13 million. D E Shaw is the largest shareholder in the company, holding $107.43 million worth of stock as of June 30. Industry analysts expect the company to grow its earnings by 100% this year and maintain a consensus Buy rating, with an average price target of $20.03, representing a 12.5% upside potential from its current levels.