The Scotts Miracle-Gro Company (NYSE:SMG) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts give Scotts Miracle‑Gro a consensus rating of "Moderate Buy" (4 hold, 4 buy) with an average 1‑year price target of $74, while some firms (Stifel, Jefferies) have raised targets to $79 and others sit in the $67–$72 range.
• The company beat the quarter with $4.53 EPS versus $3.97 consensus and $1.46B revenue versus $1.41B, but reported a low net margin (3.27%) and a negative return on equity (−79.61%).
• Scotts announced a quarterly dividend of $0.66 (annualized $2.64, a 4.3% yield) despite a high payout ratio (~147.5%), and ownership is concentrated with insiders at 24.4% and institutions at about 74.1%.

Shares of The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report) have been given an average rating of "Moderate Buy" by the eight ratings firms that are covering the company, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $74.00.

A number of research firms recently commented on SMG. Stifel Nicolaus lifted their target price on shares of Scotts Miracle-Gro from $70.00 to $79.00 and gave the stock a "buy" rating in a research note on Tuesday, March 3rd. Jefferies Financial Group reiterated a "buy" rating and issued a $79.00 target price on shares of Scotts Miracle-Gro in a research note on Wednesday. Weiss Ratings reiterated a "hold (c-)" rating on shares of Scotts Miracle-Gro in a research note on Wednesday, January 21st. UBS Group set a $67.00 target price on shares of Scotts Miracle-Gro in a research note on Thursday, January 29th. Finally, Wells Fargo & Company lowered their target price on shares of Scotts Miracle-Gro from $75.00 to $72.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th.

Insider Transactions at Scotts Miracle-Gro

In related news, Director Hagedorn Partnership, L.P. sold 50,000 shares of Scotts Miracle-Gro stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $66.40, for a total transaction of $3,320,000.00. Following the completion of the sale, the director owned 13,167,641 shares of the company's stock, valued at $874,331,362.40. The trade was a 0.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Mark J. Scheiwer acquired 693 shares of the firm's stock in a transaction on Tuesday, February 24th. The shares were acquired at an average price of $71.44 per share, with a total value of $49,507.92. Following the completion of the purchase, the executive vice president owned 15,370 shares in the company, valued at approximately $1,098,032.80. This trade represents a 4.72% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 24.40% of the company's stock.

Institutional Trading of Scotts Miracle-Gro

Institutional investors and hedge funds have recently bought and sold shares of the business. Key Capital Management INC acquired a new stake in Scotts Miracle-Gro during the 4th quarter valued at approximately $29,000. Covestor Ltd lifted its stake in Scotts Miracle-Gro by 201.1% during the 3rd quarter. Covestor Ltd now owns 527 shares of the basic materials company's stock valued at $30,000 after acquiring an additional 352 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in Scotts Miracle-Gro during the 3rd quarter valued at approximately $32,000. Hantz Financial Services Inc. lifted its stake in Scotts Miracle-Gro by 157.3% during the 3rd quarter. Hantz Financial Services Inc. now owns 584 shares of the basic materials company's stock valued at $33,000 after acquiring an additional 357 shares during the period. Finally, Smartleaf Asset Management LLC lifted its stake in Scotts Miracle-Gro by 156.7% during the 3rd quarter. Smartleaf Asset Management LLC now owns 634 shares of the basic materials company's stock valued at $35,000 after acquiring an additional 387 shares during the period. 74.07% of the stock is currently owned by institutional investors and hedge funds.

Scotts Miracle-Gro Stock Down 1.5%

Shares of Scotts Miracle-Gro stock opened at $61.76 on Friday. The firm's 50 day moving average price is $64.64 and its 200-day moving average price is $61.01. Scotts Miracle-Gro has a 52-week low of $52.00 and a 52-week high of $72.35. The company has a market cap of $3.58 billion, a P/E ratio of 34.50 and a beta of 1.88.

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, topping analysts' consensus estimates of $3.97 by $0.56. The company had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.41 billion. Scotts Miracle-Gro had a net margin of 3.27% and a negative return on equity of 79.61%. Scotts Miracle-Gro's revenue for the quarter was up 2.7% on a year-over-year basis. During the same period last year, the business earned $3.98 EPS. As a group, equities research analysts forecast that Scotts Miracle-Gro will post 4.35 EPS for the current fiscal year.

Scotts Miracle-Gro Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be issued a dividend of $0.66 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $2.64 dividend on an annualized basis and a dividend yield of 4.3%. Scotts Miracle-Gro's payout ratio is 147.49%.

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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