The Scotts Miracle-Gro Company (NYSE:SMG) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts rate Scotts Miracle-Gro “Moderate Buy”: Three of six analysts recommend buying the stock and three rate it a hold, with an average 12-month price target of $75.20.
• Recent performance exceeded expectations: The company reported quarterly EPS of $2.82, beating consensus by $0.34, while revenue rose 1.1% year over year to $1.17 billion.
• Shares faced pressure and insider selling: SMG opened at $49.33, near its 52-week low of $47.90, while insiders sold 32,002 shares worth approximately $2.15 million over the past three months. The company also maintains a quarterly dividend of $0.66, yielding 5.4%.

Shares of The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report) have been given an average recommendation of "Moderate Buy" by the six analysts that are covering the stock, Marketbeat Ratings reports. Three analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $75.20.

SMG has been the topic of a number of research reports. Stifel Nicolaus lowered their price target on shares of Scotts Miracle-Gro from $76.00 to $75.00 and set a "buy" rating on the stock in a report on Tuesday. Weiss Ratings reissued a "hold (c)" rating on shares of Scotts Miracle-Gro in a report on Friday, July 31st. Wells Fargo & Company raised their target price on Scotts Miracle-Gro from $74.00 to $77.00 and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Wall Street Zen lowered Scotts Miracle-Gro from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, UBS Group boosted their target price on Scotts Miracle-Gro from $70.00 to $78.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th.

Insider Activity at Scotts Miracle-Gro

In other news, Director Stephen L. Johnson sold 1,171 shares of Scotts Miracle-Gro stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $68.32, for a total value of $80,002.72. Following the completion of the transaction, the director owned 30,179 shares in the company, valued at $2,061,829.28. This trade represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mark D. Kingdon sold 831 shares of the business's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $61.65, for a total transaction of $51,231.15. Following the completion of the sale, the director directly owned 10,827 shares in the company, valued at approximately $667,484.55. This trade represents a 7.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 32,002 shares of company stock worth $2,154,734. Company insiders own 24.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of SMG. Rehmann Capital Advisory Group boosted its stake in Scotts Miracle-Gro by 4.2% during the fourth quarter. Rehmann Capital Advisory Group now owns 4,690 shares of the basic materials company's stock valued at $275,000 after buying an additional 187 shares during the period. Baader Bank Aktiengesellschaft grew its position in Scotts Miracle-Gro by 3.9% during the first quarter. Baader Bank Aktiengesellschaft now owns 5,193 shares of the basic materials company's stock worth $312,000 after buying an additional 193 shares in the last quarter. Oregon Public Employees Retirement Fund increased its stake in Scotts Miracle-Gro by 2.2% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 9,126 shares of the basic materials company's stock worth $555,000 after acquiring an additional 200 shares during the last quarter. GAMMA Investing LLC increased its stake in Scotts Miracle-Gro by 7.3% in the 2nd quarter. GAMMA Investing LLC now owns 3,200 shares of the basic materials company's stock worth $218,000 after acquiring an additional 218 shares during the last quarter. Finally, State of Michigan Retirement System raised its holdings in shares of Scotts Miracle-Gro by 2.9% in the 1st quarter. State of Michigan Retirement System now owns 10,800 shares of the basic materials company's stock valued at $657,000 after acquiring an additional 300 shares in the last quarter. 74.07% of the stock is owned by institutional investors.

Scotts Miracle-Gro Stock Performance

NYSE SMG opened at $49.33 on Wednesday. Scotts Miracle-Gro has a 52-week low of $47.90 and a 52-week high of $75.34. The company has a 50-day simple moving average of $60.20 and a 200 day simple moving average of $62.06. The company has a market capitalization of $2.87 billion, a PE ratio of 42.90 and a beta of 1.83.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last released its earnings results on Wednesday, July 29th. The basic materials company reported $2.82 earnings per share for the quarter, beating analysts' consensus estimates of $2.48 by $0.34. Scotts Miracle-Gro had a net margin of 2.19% and a negative return on equity of 81.90%. The firm had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.17 billion. During the same period in the previous year, the company earned $2.59 earnings per share. The company's quarterly revenue was up 1.1% on a year-over-year basis. As a group, analysts forecast that Scotts Miracle-Gro will post 4.39 EPS for the current fiscal year.

Scotts Miracle-Gro Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 4th. Investors of record on Friday, August 21st were issued a $0.66 dividend. The ex-dividend date of this dividend was Friday, August 21st. This represents a $2.64 annualized dividend and a yield of 5.4%. Scotts Miracle-Gro's dividend payout ratio (DPR) is 229.57%.

Scotts Miracle-Gro Company Profile

Scotts Miracle-Gro Company is a manufacturer and marketer of branded consumer lawn and garden products. Founded in 1868 and headquartered in Marysville, Ohio, the company serves homeowners and gardening enthusiasts through products designed for growing, feeding, protecting and maintaining plants and lawns.

Its portfolio includes lawn fertilizers, grass seed, gardening soils, plant foods, weed and pest controls, and related gardening products. Well-known brands include Scotts, Miracle-Gro, Turf Builder, Ortho, Tomcat and Earthgro.

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