Scotts Miracle-Gro (NYSE:SMG) Raised to Buy at Wall Street Zen

Key Points

• Scotts Miracle-Gro has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, indicating a positive outlook from analysts.
• The company reported $2.59 earnings per share, exceeding expectations, but revenue of $1.19 billion fell short of estimates.
• Scotts Miracle-Gro has set an FY 2025 EPS guidance of 3.500, with a consensus price target of $71.17 from analysts.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

Several other equities research analysts also recently commented on SMG. Zacks Research upgraded shares of Scotts Miracle-Gro from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 21st. Stifel Nicolaus reduced their price target on shares of 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. Truist Financial set a $80.00 price target on shares of Scotts Miracle-Gro and gave the company a "buy" rating in a research report on Monday, July 14th. UBS Group set a $68.00 price target on shares of Scotts Miracle-Gro and gave the company a "neutral" rating in a research report on Thursday, July 31st. Finally, Wells Fargo & Company upped their price target on shares of Scotts Miracle-Gro from $72.00 to $75.00 and gave the company an "overweight" rating in a research report on Wednesday, July 9th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Scotts Miracle-Gro currently has an average rating of "Moderate Buy" and a consensus price target of $71.17.

Scotts Miracle-Gro Stock Performance

Shares of NYSE:SMG opened at $60.78 on Friday. The stock has a market capitalization of $3.51 billion, a price-to-earnings ratio of 79.97 and a beta of 1.98. Scotts Miracle-Gro has a 1-year low of $45.61 and a 1-year high of $93.90. The company has a 50 day moving average price of $63.92 and a 200 day moving average price of $60.35.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last issued 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 firm had revenue of $1.19 billion during the quarter, compared to analysts' expectations of $1.23 billion. Scotts Miracle-Gro had a net margin of 1.54% and a negative return on equity of 60.46%. The firm's revenue for the quarter was down 1.2% compared to the same quarter last year. During the same period 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, sell-side analysts expect that Scotts Miracle-Gro will post 3.42 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Mark J. Scheiwer purchased 1,790 shares of the firm's stock in a transaction on Wednesday, September 3rd. The shares were bought at an average cost of $61.32 per share, for a total transaction of $109,762.80. Following the transaction, the executive vice president directly owned 10,130 shares of the company's stock, valued at approximately $621,171.60. This trade represents a 21.46% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Hagedorn Partnership, L.P. sold 70,000 shares of the firm's 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 directly owned 13,274,274 shares of the company's stock, valued at $826,721,784.72. The trade was a 0.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 25.37% of the company's stock.

Hedge Funds Weigh In On Scotts Miracle-Gro

Institutional investors have recently modified their holdings of the stock. American National Bank & Trust bought a new position in shares of Scotts Miracle-Gro in the second quarter worth about $28,000. Spire Wealth Management raised its stake in shares of Scotts Miracle-Gro by 477.9% in the first quarter. Spire Wealth Management now owns 549 shares of the basic materials company's stock worth $30,000 after acquiring an additional 454 shares during the last quarter. UMB Bank n.a. raised its stake in shares of Scotts Miracle-Gro by 479.4% in the first quarter. UMB Bank n.a. now owns 562 shares of the basic materials company's stock worth $31,000 after acquiring an additional 465 shares during the last quarter. Avalon Trust Co bought a new position in shares of Scotts Miracle-Gro in the first quarter worth about $41,000. Finally, Byrne Asset Management LLC bought a new position in shares of Scotts Miracle-Gro in the second quarter worth about $45,000. 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.

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