Scotts Miracle-Gro (NYSE:SMG) Trading Down 8.7% - Here's Why

Key Points

• Scotts Miracle-Gro's stock price dropped by 8.7%, trading as low as $61.99 during mid-day trading, significantly below its previous close of $67.86.
• Analysts have varying opinions on the stock, with JPMorgan lowering its price target from $80 to $65, while Truist set a target of $80 and maintains a buy rating.
• The company announced a quarterly dividend of $0.66, leading to an annualized dividend yield of 4.18%, with a remarkably high payout ratio of 528%.

The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report)'s stock price fell 8.7% on Wednesday . The company traded as low as $62.40 and last traded at $61.99. 435,725 shares traded hands during mid-day trading, a decline of 59% from the average session volume of 1,070,503 shares. The stock had previously closed at $67.86.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on SMG. Wells Fargo & Company upped their price target on shares of 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 price target on Scotts Miracle-Gro and gave the company a "neutral" rating in a research report on Thursday. Truist Financial set a $80.00 price target on Scotts Miracle-Gro and gave the company a "buy" rating in a research report on Monday, July 14th. Stifel Nicolaus cut Scotts Miracle-Gro from a "buy" rating to a "hold" rating and lifted their price target for the company from $70.00 to $71.00 in a research report on Monday, June 9th. Finally, JPMorgan Chase & Co. lowered their price target on Scotts Miracle-Gro from $80.00 to $65.00 and set an "overweight" rating on the stock in a research report on Thursday, May 1st. Two equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, Scotts Miracle-Gro has a consensus rating of "Moderate Buy" and an average price target of $71.33.

Scotts Miracle-Gro Trading Down 2.5%

The business's fifty day moving average is $64.81 and its 200 day moving average is $61.84. The firm has a market capitalization of $3.53 billion, a P/E ratio of 80.37 and a beta of 2.01.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last released its earnings results on Wednesday, July 30th. The basic materials company reported $2.59 EPS for the quarter, topping analysts' consensus estimates of $2.19 by $0.40. Scotts Miracle-Gro had a net margin of 1.54% and a negative return on equity of 60.46%. The business had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the previous year, the firm earned $2.31 EPS. The business's revenue for the quarter was down 1.2% on a year-over-year basis. As a group, sell-side analysts predict that The Scotts Miracle-Gro Company will post 3.42 earnings per share for the current fiscal year.

Scotts Miracle-Gro Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 22nd will be issued a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date is Friday, August 22nd. Scotts Miracle-Gro's payout ratio is presently 347.37%.

Institutional Trading of Scotts Miracle-Gro

A number of hedge funds and other institutional investors have recently made changes to their positions in SMG. American National Bank & Trust acquired a new stake in shares of Scotts Miracle-Gro during the second quarter valued at approximately $28,000. Spire Wealth Management raised its holdings in shares of Scotts Miracle-Gro by 477.9% during the first quarter. Spire Wealth Management now owns 549 shares of the basic materials company's stock valued at $30,000 after acquiring an additional 454 shares during the period. UMB Bank n.a. raised its holdings in shares of 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 valued at $31,000 after acquiring an additional 465 shares during the period. Byrne Asset Management LLC acquired a new stake in shares of Scotts Miracle-Gro during the second quarter valued at approximately $45,000. Finally, Avalon Trust Co acquired a new stake in shares of Scotts Miracle-Gro during the first quarter valued at approximately $41,000. 74.07% of the stock is currently 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.