MGP Ingredients $MGPI Stock Targeting By Short Sellers On Spruce Point Hit

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MGP Ingredients $MGPI stock was targeting by short sellers and institutional investor selling on October 12, 2022, after Spruce Point Capital issued a Strong Sell opinion on the stock.

Spruce Point sees up to 55% downside in MGP Ingredients $MGPI stock

On October 12, 2022, Spruce Point Capital Management issued a brief report on MGP Ingredients $MGPI stock. A forensic examination of the company’s Luxcoin deal found substantial evidence that the merger is failing to meet its promoted benefits despite potentially spring-loaded results, and that MGPI is making unusual cash flow and reporting revisions that point to historical financial misstatement, Spruce Point wrote in a report published on its website. Spruce Point Capital believes MGP will again disappoint investors with an unexpected revision to forecasts. It sees 35%-55% downside in shares to $45.70 – $66.00 as investors recalibrate their expectations for declining profits.

Dark Pool Trades In MGP Ingredients Stock

We detected an unusually large dark pool trade in $MGPI stock on October 12, 2022. The dark pool block order was valued at $19 million, suggesting an institutional investor reduced a long position. We think that the dark pool trade was a sell order because of how $MGPI stock fell following the print. A narrative emerges that an institutional investor reduced a long position on the report from Spruce Point Capital.

MGP Ingredients stock chart showing a $19 million dark pool trade on October 12, 2022.

MGP Ingredients $MGPI Stock Technical Analysis

MGP Ingredients $MGPI stock is in a weak uptrend but looks to soon be in a downtrend. The money flow shows rapid panic selling with traders sacrificing price in favor of execution and getting out of the stock as quickly as possible. The MACD confirmed a sell signal on October 12, 2022.

MGPI stock chart on October 12, 2022, with a negative MACD and a plunging lower money flow.
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