The Scotts Miracle-Gro Company (NYSE:SMG) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analyst consensus is “Hold”: Four of seven analysts rate Scotts Miracle-Gro a hold and three recommend buying, with an average 12-month price target of $75.40.
• Quarterly results exceeded expectations: The company reported EPS of $2.82 versus the $2.48 consensus estimate, while revenue reached $1.17 billion, up 1.1% year over year.
• Dividend yield is attractive but payout is high: Scotts declared a quarterly dividend of $0.66, equivalent to a 4.3% annualized yield, though its payout ratio stands at 229.57%.

The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report) has earned an average recommendation of "Hold" from the seven brokerages that are currently covering the firm, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $75.40.

A number of equities research analysts have weighed in on SMG shares. Wells Fargo & Company lifted their target price on Scotts Miracle-Gro from $74.00 to $77.00 and gave the company an "overweight" rating in a research report on Thursday, July 30th. Jefferies Financial Group restated a "buy" rating and set a $79.00 price target on shares of Scotts Miracle-Gro in a research note on Wednesday, April 29th. Wall Street Zen lowered Scotts Miracle-Gro from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. UBS Group lifted their price objective on Scotts Miracle-Gro from $70.00 to $78.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Finally, Stifel Nicolaus upped their price objective on shares of Scotts Miracle-Gro from $75.00 to $76.00 and gave the stock a "buy" rating in a research note on Monday, August 3rd.

Scotts Miracle-Gro Stock Performance

Shares of NYSE:SMG opened at $61.89 on Tuesday. The firm's 50 day simple moving average is $65.44 and its 200-day simple moving average is $64.34. Scotts Miracle-Gro has a one year low of $52.00 and a one year high of $75.34. The firm has a market cap of $3.60 billion, a PE ratio of 53.82 and a beta of 1.82.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The basic materials company reported $2.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.48 by $0.34. Scotts Miracle-Gro had a negative return on equity of 81.90% and a net margin of 2.19%.The firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the previous year, the business earned $2.59 earnings per share. Scotts Miracle-Gro's quarterly revenue was up 1.1% on a year-over-year basis. Equities research analysts predict that Scotts Miracle-Gro will post 4.39 EPS for the current fiscal year.

Scotts Miracle-Gro Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be issued a $0.66 dividend. The ex-dividend date is Friday, August 21st. This represents a $2.64 annualized dividend and a dividend yield of 4.3%. Scotts Miracle-Gro's payout ratio is currently 229.57%.

Insider Activity at Scotts Miracle-Gro

In other news, Director Hagedorn Partnership, L.P. sold 30,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $67.45, for a total transaction of $2,023,500.00. Following the transaction, the director directly owned 13,137,641 shares in the company, valued at approximately $886,133,885.45. This trade represents a 0.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen L. Johnson sold 1,171 shares of Scotts Miracle-Gro stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $68.32, for a total transaction of $80,002.72. Following the transaction, the director directly owned 30,179 shares in the company, valued at approximately $2,061,829.28. The trade was a 3.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 24.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Rehmann Capital Advisory Group lifted its stake in Scotts Miracle-Gro by 4.2% during the 4th quarter. Rehmann Capital Advisory Group now owns 4,690 shares of the basic materials company's stock valued at $275,000 after acquiring an additional 187 shares during the period. Baader Bank Aktiengesellschaft increased its stake in shares of Scotts Miracle-Gro by 3.9% in the first quarter. Baader Bank Aktiengesellschaft now owns 5,193 shares of the basic materials company's stock worth $312,000 after acquiring an additional 193 shares during the period. Oregon Public Employees Retirement Fund increased its stake in shares of Scotts Miracle-Gro by 2.2% in the first quarter. Oregon Public Employees Retirement Fund now owns 9,126 shares of the basic materials company's stock worth $555,000 after acquiring an additional 200 shares during the period. GAMMA Investing LLC raised its holdings in shares of Scotts Miracle-Gro by 7.3% during the second quarter. GAMMA Investing LLC now owns 3,200 shares of the basic materials company's stock worth $218,000 after purchasing an additional 218 shares during the last quarter. Finally, Daiwa Securities Group Inc. raised its holdings in shares of Scotts Miracle-Gro by 6.1% during the fourth quarter. Daiwa Securities Group Inc. now owns 5,077 shares of the basic materials company's stock worth $296,000 after purchasing an additional 294 shares during the last quarter. 74.07% of the stock is currently owned by hedge funds and other institutional investors.

About Scotts Miracle-Gro

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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