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 lowered shares of Scotts Miracle-Gro (NYSE:SMG - Free Report) from a buy rating to a hold rating in a report published on Friday.

A number of other research firms have also recently issued reports on SMG. Stifel Nicolaus lowered their target price on Scotts Miracle-Gro from $71.00 to $70.00 and set a "hold" rating for the company in a research note on Monday, August 4th. Wells Fargo & Company increased their target price 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. UBS Group set a $68.00 target price on Scotts Miracle-Gro and gave the stock a "neutral" rating in a research note on Thursday, July 31st. Zacks Research raised Scotts Miracle-Gro from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 21st. Finally, Truist Financial set a $80.00 target price on Scotts Miracle-Gro and gave the stock a "buy" rating in a research note on Monday, July 14th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Scotts Miracle-Gro presently has an average rating of "Moderate Buy" and an average price target of $71.17.

Scotts Miracle-Gro Trading Up 1.7%

Shares of NYSE:SMG traded up $1.04 during mid-day trading on Friday, reaching $61.66. The stock had a trading volume of 514,013 shares, compared to its average volume of 699,602. The firm has a market cap of $3.56 billion, a PE ratio of 81.13 and a beta of 1.98. The firm has a 50 day simple moving average of $64.07 and a two-hundred day simple moving average of $60.35. Scotts Miracle-Gro has a twelve month low of $45.61 and a twelve month high of $93.90.

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

Scotts Miracle-Gro Dividend Announcement

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 dividend of $0.66 per share. This represents a $2.64 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend was Friday, August 22nd. Scotts Miracle-Gro's dividend payout ratio (DPR) is currently 347.37%.

Insider Activity at Scotts Miracle-Gro

In other Scotts Miracle-Gro news, EVP Mark J. Scheiwer purchased 1,790 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was bought at an average cost of $61.32 per share, with a total value of $109,762.80. Following the purchase, the executive vice president directly owned 10,130 shares of the company's stock, valued at $621,171.60. The trade was a 21.46% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Hagedorn Partnership, L.P. sold 70,000 shares of the firm's stock in a transaction on Monday, August 4th. The shares were sold at an average price of $62.28, for a total transaction of $4,359,600.00. Following the completion of the transaction, the director directly owned 13,274,274 shares of the company's stock, valued at $826,721,784.72. This represents a 0.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. 25.37% of the stock is owned by company insiders.

Hedge Funds Weigh In On Scotts Miracle-Gro

Hedge funds and other institutional investors have recently made changes to their positions in the company. Oppenheimer & Co. Inc. grew its stake in shares of Scotts Miracle-Gro by 21.9% in the first quarter. Oppenheimer & Co. Inc. now owns 3,819 shares of the basic materials company's stock valued at $210,000 after buying an additional 685 shares in the last quarter. GAMMA Investing LLC grew its stake in shares of Scotts Miracle-Gro by 31.6% in the first quarter. GAMMA Investing LLC now owns 1,614 shares of the basic materials company's stock valued at $89,000 after buying an additional 388 shares in the last quarter. Sowell Financial Services LLC bought a new position in shares of Scotts Miracle-Gro in the first quarter valued at $226,000. SG Americas Securities LLC bought a new position in shares of Scotts Miracle-Gro in the first quarter valued at $1,011,000. Finally, Nuveen LLC bought a new position in shares of Scotts Miracle-Gro in the first quarter valued at $5,475,000. 74.07% of the stock is owned by institutional investors.

Scotts Miracle-Gro Company Profile

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.