Scotts Miracle-Gro (NYSE:SMG) Sets New 1-Year Low - Should You Sell?

Key Points

• Scotts Miracle-Gro shares fell to a new 52-week low of $49.83, trading well below their 50-day and 200-day moving averages of $61.00 and $62.26, respectively.
• Analyst sentiment remains mixed but leans positive, with three Buy and three Hold ratings producing a “Moderate Buy” consensus and an average price target of $75.40.
• The company exceeded quarterly EPS expectations ($2.82 versus $2.48), while maintaining a quarterly dividend of $0.66 per share, equivalent to a 5.2% yield; however, its payout ratio is unusually high at 229.57%.

The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report) shares reached a new 52-week low during trading on Monday. The stock traded as low as $49.83 and last traded at $50.4090, with a volume of 42291 shares changing hands. The stock had previously closed at $50.89.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on SMG. Weiss Ratings reiterated a "hold (c)" rating on shares of Scotts Miracle-Gro in a research report on Friday, July 31st. Wells Fargo & Company raised their price target on Scotts Miracle-Gro from $74.00 to $77.00 and gave the company an "overweight" rating in a report on Thursday, July 30th. Wall Street Zen lowered Scotts Miracle-Gro from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. UBS Group lifted their price objective on shares of Scotts Miracle-Gro from $70.00 to $78.00 and gave the company a "neutral" rating in a research note on Thursday, July 30th. Finally, Stifel Nicolaus increased their target price on shares of Scotts Miracle-Gro from $75.00 to $76.00 and gave the company a "buy" rating in a research report on Monday, August 3rd. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $75.40.

Scotts Miracle-Gro Stock Down 0.2%

The business has a 50-day simple moving average of $61.00 and a two-hundred day simple moving average of $62.26. The stock has a market capitalization of $2.95 billion, a price-to-earnings ratio of 44.27 and a beta of 1.83.

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

Scotts Miracle-Gro Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, September 4th. Shareholders of record on Friday, August 21st were given a $0.66 dividend. The ex-dividend date was Friday, August 21st. This represents a $2.64 annualized dividend and a yield of 5.2%. Scotts Miracle-Gro's payout ratio is 229.57%.

Insider Buying and Selling at Scotts Miracle-Gro

In other news, Director Hagedorn Partnership, L.P. sold 30,000 shares of Scotts Miracle-Gro stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $67.45, for a total value of $2,023,500.00. Following the transaction, the director owned 13,137,641 shares of the company's stock, valued at $886,133,885.45. The trade was a 0.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Mark D. Kingdon sold 831 shares of the business's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $61.65, for a total transaction of $51,231.15. Following the completion of the sale, the director owned 10,827 shares in the company, valued at $667,484.55. The trade was a 7.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 32,002 shares of company stock valued at $2,154,734. 24.40% of the stock is owned by insiders.

Institutional Trading of Scotts Miracle-Gro

Large investors have recently added to or reduced their stakes in the business. Cassaday & Co Wealth Management LLC bought a new position in shares of Scotts Miracle-Gro in the first quarter valued at $26,000. Elevation Wealth Partners LLC boosted its stake in shares of Scotts Miracle-Gro by 394.1% during the 2nd quarter. Elevation Wealth Partners LLC now owns 751 shares of the basic materials company's stock worth $51,000 after acquiring an additional 599 shares in the last quarter. Hantz Financial Services Inc. boosted its stake in shares of Scotts Miracle-Gro by 64.9% during the 4th quarter. Hantz Financial Services Inc. now owns 963 shares of the basic materials company's stock worth $56,000 after acquiring an additional 379 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Scotts Miracle-Gro by 661.9% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,219 shares of the basic materials company's stock worth $74,000 after acquiring an additional 1,059 shares during the last quarter. Finally, Hillsdale Investment Management Inc. acquired a new position in shares of Scotts Miracle-Gro in the 4th quarter worth $81,000. 74.07% of the stock is currently owned by institutional investors.

About Scotts Miracle-Gro

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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