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

Key Points

• Scotts Miracle-Gro shares moved above their 200-day moving average during Tuesday trading, with the stock reaching as high as $65.18 before last trading around $64.15. The move came on volume of 710,446 shares.
• Analyst sentiment is mixed but leaning cautious, with four Hold ratings and three Buy ratings. The stock’s average price target is $71.60, though recent calls included a Stifel price target cut to $75 and a JPMorgan downgrade to Neutral.
• The company reported better-than-expected quarterly results and pays a high dividend, posting EPS of $4.53 versus estimates of $3.97 and revenue of $1.46 billion versus $1.41 billion expected. It also declared a quarterly dividend of $0.66, equal to a 4.1% yield, though the payout ratio is elevated at 147.49%.

The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $63.36 and traded as high as $65.18. Scotts Miracle-Gro shares last traded at $64.1450, with a volume of 710,446 shares trading hands.

Analyst Ratings Changes

Several brokerages have recently weighed in on SMG. Stifel Nicolaus reduced their price target on Scotts Miracle-Gro from $76.00 to $75.00 and set a "buy" rating on the stock in a report on Monday, June 8th. JPMorgan Chase & Co. cut Scotts Miracle-Gro from an "overweight" rating to a "neutral" rating and dropped their price objective for the company from $70.00 to $67.00 in a report on Thursday, March 26th. Wall Street Zen raised Scotts Miracle-Gro from a "hold" rating to a "buy" rating in a research report on Saturday, July 4th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Scotts Miracle-Gro in a research report on Monday, May 4th. Finally, UBS Group reiterated a "neutral" rating on shares of Scotts Miracle-Gro in a research note on Tuesday, June 23rd. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $71.60.

Scotts Miracle-Gro Stock Up 0.4%

The business's 50 day moving average is $62.20 and its 200 day moving average is $63.36. The company has a market cap of $3.73 billion, a P/E ratio of 35.84 and a beta of 1.81.

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

Scotts Miracle-Gro Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date was Friday, May 22nd. Scotts Miracle-Gro's dividend payout ratio (DPR) is currently 147.49%.

Institutional Investors Weigh In On Scotts Miracle-Gro

Institutional investors have recently bought and sold shares of the company. Cassaday & Co Wealth Management LLC acquired a new position in shares of Scotts Miracle-Gro during the first quarter worth $26,000. Key Capital Management INC purchased a new stake in shares of Scotts Miracle-Gro during the 4th quarter valued at $29,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Scotts Miracle-Gro in the 3rd quarter worth $32,000. Elevation Wealth Partners LLC boosted 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 in the last quarter. Finally, SBI Securities Co. Ltd. grew its stake in Scotts Miracle-Gro by 127.9% during the 4th quarter. SBI Securities Co. Ltd. now owns 889 shares of the basic materials company's stock worth $52,000 after buying an additional 499 shares during the last quarter. 74.07% of the stock is currently owned by institutional investors and hedge funds.

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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