Scotts Miracle-Gro (NYSE:SMG) Hits New 1-Year High - Here's Why

Key Points

• Scotts Miracle-Gro shares hit a new 52-week high, trading as high as $74.11 after closing previously at $67.99, and were up about 10.1% on the day.
• Recent analyst action has been mixed but generally supportive: one firm upgraded the stock to buy, while others maintained buy/neutral views and set price targets mostly in the low-to-mid $70s. The consensus rating is Hold with an average price target of $71.60.
• The company reported better-than-expected quarterly results on April 29, beating EPS and revenue estimates, and it also paid a quarterly dividend of $0.66 per share, equal to a 3.5% annualized yield.

The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The stock traded as high as $74.11 and last traded at $74.2640, with a volume of 130692 shares changing hands. The stock had previously closed at $67.99.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Wall Street Zen raised shares of Scotts Miracle-Gro from a "hold" rating to a "buy" rating in a research note on Saturday, July 4th. Stifel Nicolaus lowered 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 report on Monday, June 8th. Wells Fargo & Company lifted their price target on Scotts Miracle-Gro from $72.00 to $74.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 8th. UBS Group reissued a "neutral" rating on shares of Scotts Miracle-Gro in a research note on Thursday. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $79.00 price objective on shares of Scotts Miracle-Gro in a research note on Wednesday, April 29th. Three analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $71.60.

Scotts Miracle-Gro Stock Up 10.1%

The firm has a market cap of $4.36 billion, a P/E ratio of 41.77 and a beta of 1.81. The company's 50 day simple moving average is $62.30 and its 200-day simple moving average is $63.43.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last released its earnings results on Wednesday, April 29th. The basic materials company reported $4.53 EPS for the quarter, beating analysts' consensus estimates of $3.97 by $0.56. Scotts Miracle-Gro had a negative return on equity of 79.61% and a net margin of 3.27%.The firm had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.41 billion. During the same quarter in the prior year, the firm posted $3.98 earnings per share. The company's quarterly revenue was up 2.7% on a year-over-year basis. Equities research analysts predict that The Scotts Miracle-Gro Company will post 4.3 EPS for the current year.

Scotts Miracle-Gro Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were given a dividend of $0.66 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $2.64 dividend on an annualized basis and a yield of 3.5%. Scotts Miracle-Gro's payout ratio is 147.49%.

Hedge Funds Weigh In On Scotts Miracle-Gro

Several institutional investors have recently made changes to their positions in the company. Cassaday & Co Wealth Management LLC bought a new position in Scotts Miracle-Gro during the 1st quarter worth about $26,000. Key Capital Management INC bought a new stake in shares of Scotts Miracle-Gro in the 4th quarter valued at about $29,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Scotts Miracle-Gro in the 3rd quarter worth approximately $32,000. Elevation Wealth Partners LLC lifted its position in shares of Scotts Miracle-Gro by 394.1% in the 2nd quarter. Elevation Wealth Partners LLC now owns 751 shares of the basic materials company's stock worth $51,000 after purchasing an additional 599 shares during the period. Finally, SBI Securities Co. Ltd. boosted its stake in shares of Scotts Miracle-Gro by 127.9% during the fourth quarter. SBI Securities Co. Ltd. now owns 889 shares of the basic materials company's stock valued at $52,000 after purchasing an additional 499 shares in the last quarter. Hedge funds and other institutional investors own 74.07% of the company's stock.

Scotts Miracle-Gro Company Profile

Scotts Miracle-Gro Company is a leading developer, manufacturer and distributor of consumer lawn and garden products. The firm serves both retail and professional customers through an array of branded offerings that include lawn fertilizers, grass seed, pest and disease control solutions, plant foods and specialty products for indoor and outdoor gardening. Its portfolio spans well-known names such as Scotts®, Miracle-Gro®, Ortho® and various hydroponic and specialty garden brands.

Headquartered in Marysville, Ohio, the company traces its roots to O.M.

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