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

The Scotts Miracle-Gro Company (NYSE:SMGGet Rating) dropped 6% during trading 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 changed hands during 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. Stifel Nicolaus reduced their price target on Scotts Miracle-Gro from $116.00 to $93.00 in a research report on Tuesday, June 14th. 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 report on Thursday, April 21st. StockNews.com downgraded Scotts Miracle-Gro from a “hold” rating to a “sell” rating in a report on Saturday, May 21st. UBS Group lowered 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. Finally, JPMorgan Chase & Co. downgraded Scotts Miracle-Gro from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $130.00 to $95.00 in a report on Thursday, June 9th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, one has issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $113.88.

Insider Buying and Selling

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

Hedge Funds Weigh In On Scotts Miracle-Gro

Institutional investors and hedge funds have recently modified their holdings of the stock. Personal Capital Advisors Corp lifted its stake in shares of Scotts Miracle-Gro by 36.8% during the 2nd 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 holdings in shares of Scotts Miracle-Gro by 13.7% in the 2nd quarter. Vestmark Advisory Solutions Inc. now owns 59,267 shares of the basic materials company’s stock valued at $4,681,000 after acquiring an additional 7,158 shares during the period. Fifth Third Bancorp increased its holdings in shares of Scotts Miracle-Gro by 28.4% in the 2nd quarter. Fifth Third Bancorp now owns 12,543 shares of the basic materials company’s stock valued at $991,000 after acquiring an additional 2,774 shares during the period. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Scotts Miracle-Gro by 22.6% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,941 shares of the basic materials company’s stock valued at $312,000 after acquiring an additional 727 shares during the period. Finally, Mitsubishi UFJ Kokusai Asset Management Co. Ltd. purchased a new position in shares of Scotts Miracle-Gro in the 2nd quarter valued at $363,000. Hedge funds and other institutional investors own 62.23% of the company’s stock.

Scotts Miracle-Gro Price Performance

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

Scotts Miracle-Gro (NYSE:SMGGet Rating) last announced its earnings results on Wednesday, August 3rd. The basic materials company reported $1.98 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the previous year, the business earned $3.98 EPS. The firm’s revenue for the quarter was down 26.3% on a year-over-year basis. Sell-side analysts forecast that The Scotts Miracle-Gro Company will post 4.73 EPS for the current fiscal year.

Scotts Miracle-Gro Announces Dividend

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