10 Worst Farmland and Agriculture Stocks to Buy According to Short Sellers

8. Ingredion Incorporated (NYSE:INGR)

Number of Hedge Funds: 36

Short % of Float: 3.24%

Ingredion Incorporated (NYSE:INGR) supplies starches, sweeteners, and biomaterial solutions across the globe. These solutions cater to industries including food and beverage, and industrial applications. The company has a footprint in North America, South America, Asia-Pacific, Europe, Africa, and the Middle East, playing an important part in catering to evolving consumer and industry needs by providing ingredient solutions.

The company reported net sales of $1.8 billion for Q4 ended December 31, 2024, which is a decline of 6% compared to the previous year. On the other hand, Ingredion Incorporated (NYSE:INGR) reported a 12% increase in its gross profit and a 420-basis points improvement in its margin, which now sits at 25%. The adjusted operating income was $248 million, a 22% increase, primarily driven by lower raw material costs, increased sales volume, and strategic pricing adjustments. This growth was led by the company’s Texture & Healthful Solutions segment, which achieved a double-digit increase in sales for the second consecutive quarter.

Moreover, Ingredion Incorporated (NYSE:INGR) has looked to aggressively improve its operational efficiencies through its Cost2Compete program. This program was able to achieve its savings target by over 30% for the first year. Furthermore, the company is looking to reduce costs by $50 million by 2025 through efficient sourcing, network optimization, and the closure of smaller facilities in the U.K., Canada, and Brazil. Ingredion has also announced an investment of $50 million in its Cedar Rapids, Iowa facility in February 2025. This investment will increase the production of industrial starch used by the packaging and papermaking industries, bolstering the company’s commitment to innovation and sustainability.

While Ingredion Incorporated (NYSE:INGR) is making efforts to expand its portfolio and improve efficiency, it is suffering from rapidly changing corn prices. These fluctuating prices negatively impact its overall efficiency. Furthermore, soft sweetener demand further impacts its demand and revenue projections negatively. As such, short sellers remain pessimistic for the stock, making it one of the Worst Farmland and Agriculture Stocks to Buy According to Short Sellers.