5 Best Brewery and Distillery Stocks To Buy Now

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

Number of Hedge Fund Holders: 25

MGP Ingredients, Inc. (NASDAQ:MGPI) specializes in the production and distribution of distilled spirits, branded spirits, and food ingredients. Their operations span across the United States and international markets. The company operates through three distinct segments – Distillery Solutions, Branded Spirits, and Ingredient Solutions.

On February 2, Wells Fargo analyst Marc Torrente reiterated an Overweight rating on MGP Ingredients, Inc. (NASDAQ:MGPI) but lowered the firm’s price target on the shares to $118 from $128. The reason for the share price decline is concerns about normalization within the category. However, Wells Fargo believes that MGP Ingredients, Inc. (NASDAQ:MGPI)’s strategic position could help it withstand the current challenges better than the market is giving it credit for, despite tempering its sales outlook due to this issue.

According to Insider Monkey’s fourth quarter database, MGP Ingredients, Inc. (NASDAQ:MGPI) was part of 25 hedge fund portfolios, compared to 19 in the prior quarter. Richard Driehaus’ Driehaus Capital is the biggest stakeholder of the company, with 477,203 shares worth $50.7 million. 

Here is what Harding Loevner specifically said about MGP Ingredients, Inc. (NASDAQ:MGPI) in its Q2 2022 investor letter:

“By region, our performance was aided by a renewed market preference for higher-quality small caps in the US, where the portfolio had its best stock selection. Shares of discount retailer Ollie’s Bargain Outlet rebounded from their first-quarter decline while shares of MGP Ingredients, Inc. (NASDAQ:MGPI) reached an all-time high. Ollie’s expects to benefit from the excess inventory at other retailers given its focus on closeout merchandise. MGP Ingredients posted record growth and margin expansion on strong demand for its aged whiskey as well as specialty wheat starches and proteins used in food products.”