Scotts Miracle-Gro (NYSE:SMG) Shares Down 6% Following Analyst Downgrade

Shares of The Scotts Miracle-Gro Company (NYSE:SMGGet Rating) were down 6% on Wednesday after Raymond James lowered their price target on the stock from $110.00 to $100.00. Raymond James currently has a strong-buy rating on the stock. Scotts Miracle-Gro traded as low as $81.71 and last traded at $82.19. Approximately 15,791 shares were traded during mid-day trading, a decline of 96% from the average daily volume of 392,547 shares. The stock had previously closed at $87.43.

Several other equities analysts have also recently weighed in on the company. UBS Group reduced their price target on Scotts Miracle-Gro from $92.00 to $86.00 and set a “neutral” rating for the company in a research report on Wednesday. Truist Financial downgraded Scotts Miracle-Gro from a “buy” rating to a “hold” rating and lowered their price target for the company from $185.00 to $85.00 in a report on Wednesday, June 8th. Barclays downgraded Scotts Miracle-Gro from an “overweight” rating to an “equal weight” rating and decreased their price objective for the stock from $150.00 to $110.00 in a research note on Thursday, April 21st. Wells Fargo & Company cut Scotts Miracle-Gro from an “overweight” rating to an “equal weight” rating and dropped their target price for the stock from $115.00 to $85.00 in a report on Wednesday, June 22nd. Finally, StockNews.com downgraded Scotts Miracle-Gro from a “hold” rating to a “sell” rating in a report on Saturday, May 21st. One research analyst has rated the stock with a sell rating, six have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Scotts Miracle-Gro presently has an average rating of “Hold” and an average price target of $113.88.

Insider Activity

In other news, CEO James Hagedorn sold 60,000 shares of the stock in a transaction on Friday, May 13th. The stock was sold at an average price of $97.74, for a total transaction of $5,864,400.00. Following the completion of the transaction, the chief executive officer now directly owns 261,816 shares in the company, valued at approximately $25,589,895.84. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. In other Scotts Miracle-Gro news, EVP James D. King sold 17,500 shares of Scotts Miracle-Gro stock in a transaction that occurred on Tuesday, May 10th. The stock was sold at an average price of $98.42, for a total transaction of $1,722,350.00. Following the transaction, the executive vice president now owns 9,760 shares of the company’s stock, valued at $960,579.20. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO James Hagedorn sold 60,000 shares of Scotts Miracle-Gro stock in a transaction that occurred on Friday, May 13th. The shares were sold at an average price of $97.74, for a total value of $5,864,400.00. Following the completion of the transaction, the chief executive officer now owns 261,816 shares in the company, valued at $25,589,895.84. The disclosure for this sale can be found here. Company insiders own 27.31% of the company’s stock.

Hedge Funds Weigh In On Scotts Miracle-Gro

Several hedge funds and other institutional investors have recently bought and sold shares of SMG. Personal Capital Advisors Corp raised its holdings in shares of Scotts Miracle-Gro by 36.8% in the second quarter. Personal Capital Advisors Corp now owns 377,295 shares of the basic materials company’s stock worth $29,803,000 after acquiring an additional 101,414 shares during the last quarter. Vestmark Advisory Solutions Inc. increased its stake in Scotts Miracle-Gro by 13.7% in the second quarter. Vestmark Advisory Solutions Inc. now owns 59,267 shares of the basic materials company’s stock valued at $4,681,000 after purchasing an additional 7,158 shares during the last quarter. Fifth Third Bancorp increased its stake in Scotts Miracle-Gro by 28.4% in the second quarter. Fifth Third Bancorp now owns 12,543 shares of the basic materials company’s stock valued at $991,000 after purchasing an additional 2,774 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in Scotts Miracle-Gro by 22.6% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,941 shares of the basic materials company’s stock valued at $312,000 after purchasing an additional 727 shares during the last quarter. Finally, Mitsubishi UFJ Kokusai Asset Management Co. Ltd. acquired a new position in Scotts Miracle-Gro in the second quarter valued at $363,000. 62.23% of the stock is owned by institutional investors and hedge funds.

Scotts Miracle-Gro Price Performance

The stock has a market capitalization of $4.45 billion, a price-to-earnings ratio of 11.27 and a beta of 1.24. The company has a 50 day moving average of $85.09 and a 200 day moving average of $109.80. The company has a quick ratio of 1.13, a current ratio of 2.21 and a debt-to-equity ratio of 3.44.

Scotts Miracle-Gro (NYSE:SMGGet Rating) last posted its quarterly earnings results on Wednesday, August 3rd. The basic materials company reported $1.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.70 by $0.28. Scotts Miracle-Gro had a return on equity of 42.22% and a net margin of 8.81%. The firm had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the previous year, the business earned $3.98 earnings per share. The firm’s quarterly revenue was down 26.3% compared to the same quarter last year. As a group, equities research analysts forecast that The Scotts Miracle-Gro Company will post 4.73 EPS for the current fiscal year.

Scotts Miracle-Gro Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 9th. Stockholders of record on Friday, August 26th will be given a $0.66 dividend. This represents a $2.64 annualized dividend and a dividend yield of 3.29%. The ex-dividend date of this dividend is Thursday, August 25th. Scotts Miracle-Gro’s payout ratio is 37.08%.

Scotts Miracle-Gro Company Profile

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The Scotts Miracle-Gro Company engages in the manufacture, marketing, and sale of products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. The company operates through three segments: U.S. Consumer, Hawthorne, and Other. It provides lawn care products comprising lawn fertilizers, grass seed products, spreaders, other durable products, and outdoor cleaners, as well as lawn-related weed, pest, and disease control products; gardening and landscape products include water-soluble and continuous-release plant foods, potting mixes and garden soils, mulch and decorative groundcover products, plant-related pest and disease control products, organic garden products, and lives goods and seeding solutions.

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