Scotts Miracle-Gro (NYSE:SMG) Stock Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Scotts Miracle-Gro shares rose above their 200-day moving average, reaching $62.90 and last trading at $62.22, compared with a 200-day average of $61.91.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $70.20, despite several recent target reductions and mixed rating changes.
• The company exceeded quarterly EPS expectations, reporting $2.82 versus the $2.48 consensus, while revenue reached $1.17 billion and increased 1.1% year over year; insiders recently sold shares, though institutions own 74.07% of the stock.

The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report) shares passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $61.91 and traded as high as $62.90. Scotts Miracle-Gro shares last traded at $62.22, with a volume of 1,462,273 shares trading hands.

Analysts Set New Price Targets

SMG has been the topic of several research reports. Wells Fargo & Company lowered their price objective on shares of Scotts Miracle-Gro from $77.00 to $60.00 and set an "overweight" rating on the stock in a research report on Monday, October 5th. Weiss Ratings cut Scotts Miracle-Gro from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, October 6th. UBS Group upgraded Scotts Miracle-Gro from a "neutral" rating to a "buy" rating and dropped their target price for the stock from $78.00 to $70.00 in a research report on Thursday, October 15th. Wall Street Zen downgraded shares of Scotts Miracle-Gro from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, Stifel Nicolaus cut their price objective on shares of Scotts Miracle-Gro from $76.00 to $75.00 and set a "buy" rating for the company in a research note on Tuesday, September 29th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $70.20.

Scotts Miracle-Gro Trading Up 0.6%

The company's fifty day simple moving average is $55.30 and its 200 day simple moving average is $61.91. The firm has a market capitalization of $3.62 billion, a P/E ratio of 54.10 and a beta of 1.87.

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

Insider Buying and Selling at Scotts Miracle-Gro

In other news, Director Hagedorn Partnership, L.P. sold 30,000 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $67.45, for a total value of $2,023,500.00. Following the sale, the director directly owned 13,137,641 shares of the company's stock, valued at approximately $886,133,885.45. This represents a 0.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Mark D. Kingdon sold 831 shares of the firm's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $61.65, for a total value of $51,231.15. Following the transaction, the director owned 10,827 shares of the company's stock, valued at $667,484.55. The trade was a 7.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 24.40% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SMG. Epoch Investment Partners Inc. purchased a new position in shares of Scotts Miracle-Gro during the 1st quarter valued at approximately $50,058,000. Arrowstreet Capital Limited Partnership raised its stake in shares of Scotts Miracle-Gro by 161.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,289,974 shares of the basic materials company's stock valued at $78,443,000 after acquiring an additional 795,970 shares in the last quarter. First Trust Advisors LP raised its stake in Scotts Miracle-Gro by 401.6% in the first quarter. First Trust Advisors LP now owns 153,678 shares of the basic materials company's stock valued at $9,345,000 after buying an additional 123,041 shares in the last quarter. Madison Asset Management LLC acquired a new position in Scotts Miracle-Gro in the second quarter valued at approximately $7,163,000. Finally, Corient Private Wealth LP lifted its holdings in shares of Scotts Miracle-Gro by 500.3% in the 2nd quarter. Corient Private Wealth LP now owns 114,728 shares of the basic materials company's stock valued at $7,814,000 after purchasing an additional 95,616 shares during the last quarter. 74.07% of the stock is owned by hedge funds and other institutional investors.

Scotts Miracle-Gro Company Profile

Scotts Miracle-Gro Company is a provider of consumer lawn and garden products headquartered in Marysville, Ohio. The company develops and markets products designed to help consumers grow and maintain lawns, gardens, landscapes and indoor plants.

Its portfolio includes lawn fertilizers, grass seed, plant food, gardening products, pest-control solutions, soils and related growing supplies. Key consumer brands include Scotts, Miracle-Gro, Ortho and Tomcat. The company also has a history of serving the controlled-environment agriculture and hydroponics markets through specialized growing products and supplies.

Scotts Miracle-Gro was founded in 1868 and has built a broad distribution network serving retail customers, garden centers and other outlets.

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