Tecnoglass (NASDAQ:TGLS) plummeted Thursday after short seller Hindenburg Research released a new short report. Hindeburg alleges that the company has undisclosed related party transactions and "accounting irregularities."
"All told, we have no faith in the company’s financials given management’s background and the irregularities we have uncovered," Hindenburg wrote in the report.
Wednesday brought news that the company, a leading manufacturer of architectural glass, windows, and associated aluminum products for the global residential and commercial construction industries, declared a 136% increase in the quarterly cash dividend on its common stock, to $0.065 per share from $0.0275 per share.
At the new rate, the dividend on an annualized basis will be $0.26 per share compared to the previous rate of $0.11 per share. The Company’s next quarterly cash dividend of $0.065 per share will be payable on January 31, 2022 to shareholders of record at the close of business on December 31, 2021.
Chief Financial Officer Santiago Giraldo commented, "The Board’s confidence in Tecnoglass’ growth strategy and significant free cash flow generation supports this substantial increase in our quarterly dividend. Our current growth capex phase is largely completed and our record backlog provides us with ample visibility into the future while strong market conditions have continued into the end of the year.
"We remain committed to a balanced approach to capital allocation, which includes investments in our operations to drive future growth and returning cash to shareholders."
TGLS shares caved $10.99, or 32.6%, to $22.71.
