Scotts Miracle-Gro (NYSE:SMG) Downgraded by Wall Street Zen to "Hold"

Key Points

• Scotts Miracle-Gro has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a shift in analyst sentiment.
• Despite the downgrade, several analysts have varying price targets, with the consensus target currently at $71.17, suggesting a "Moderate Buy" rating overall.
• In insider trading news, EVP Mark J. Scheiwer increased their position by purchasing 1,790 shares, while a director sold 70,000 shares, reflecting mixed signals from company insiders.

Wall Street Zen downgraded shares of Scotts Miracle-Gro (NYSE:SMG - Free Report) from a buy rating to a hold rating in a report released on Friday morning.

Other equities research analysts also recently issued research reports about the company. UBS Group set a $68.00 price objective on Scotts Miracle-Gro and gave the company a "neutral" rating in a research report on Thursday, July 31st. Wells Fargo & Company raised their price objective on Scotts Miracle-Gro from $72.00 to $75.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 9th. Truist Financial set a $80.00 price objective on Scotts Miracle-Gro and gave the stock a "buy" rating in a research note on Monday, July 14th. Zacks Research upgraded Scotts Miracle-Gro from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 21st. Finally, Stifel Nicolaus cut their price objective on Scotts Miracle-Gro from $71.00 to $70.00 and set a "hold" rating for the company in a research report on Monday, August 4th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $71.17.

Scotts Miracle-Gro Trading Down 1.0%

NYSE:SMG traded down $0.62 during midday trading on Friday, hitting $62.42. 635,028 shares of the company traded hands, compared to its average volume of 719,364. The firm's fifty day moving average is $64.51 and its 200-day moving average is $60.33. Scotts Miracle-Gro has a 12-month low of $45.61 and a 12-month high of $93.90. The firm has a market capitalization of $3.60 billion, a P/E ratio of 82.13 and a beta of 1.98.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last released its earnings results on Wednesday, July 30th. The basic materials company reported $2.59 earnings per share for the quarter, topping analysts' consensus estimates of $2.19 by $0.40. The business had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.23 billion. Scotts Miracle-Gro had a negative return on equity of 60.46% and a net margin of 1.54%.The business's revenue was down 1.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.31 earnings per share. Scotts Miracle-Gro has set its FY 2025 guidance at 3.500- EPS. On average, research analysts expect that Scotts Miracle-Gro will post 3.42 EPS for the current fiscal year.

Scotts Miracle-Gro Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 5th. Stockholders of record on Friday, August 22nd were paid a $0.66 dividend. This represents a $2.64 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend was Friday, August 22nd. Scotts Miracle-Gro's dividend payout ratio is 347.37%.

Insider Activity

In related news, Director Hagedorn Partnership, L.P. sold 70,000 shares of the stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $62.28, for a total transaction of $4,359,600.00. Following the transaction, the director owned 13,274,274 shares of the company's stock, valued at approximately $826,721,784.72. This represents a 0.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Mark J. Scheiwer bought 1,790 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The shares were purchased at an average cost of $61.32 per share, for a total transaction of $109,762.80. Following the purchase, the executive vice president owned 10,130 shares in the company, valued at $621,171.60. This represents a 21.46% increase in their position. The disclosure for this purchase can be found here. 25.37% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Scotts Miracle-Gro

A number of hedge funds have recently bought and sold shares of the stock. American National Bank & Trust purchased a new position in shares of Scotts Miracle-Gro in the 2nd quarter valued at about $28,000. Spire Wealth Management lifted its holdings in shares of Scotts Miracle-Gro by 477.9% in the 1st quarter. Spire Wealth Management now owns 549 shares of the basic materials company's stock valued at $30,000 after buying an additional 454 shares during the period. UMB Bank n.a. raised its holdings in Scotts Miracle-Gro by 479.4% during the first quarter. UMB Bank n.a. now owns 562 shares of the basic materials company's stock worth $31,000 after purchasing an additional 465 shares during the last quarter. Avalon Trust Co acquired a new position in Scotts Miracle-Gro during the first quarter worth $41,000. Finally, Byrne Asset Management LLC purchased a new position in Scotts Miracle-Gro during the second quarter worth $45,000. Institutional investors and hedge funds own 74.07% of the company's stock.

About Scotts Miracle-Gro

The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions.