Scotts Miracle-Gro (NYSE:SMG) Stock Price Down 7.1% – Time to Sell?

The Scotts Miracle-Gro Company (NYSE:SMG) traded down 7.1% during trading on Wednesday . The stock traded as low as $67.07 and last traded at $67.8970. 85,270 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 934,010 shares. The stock had previously closed at $73.10.

Key Scotts Miracle-Gro News

Here are the key news stories impacting Scotts Miracle-Gro this week:

• Positive Sentiment: ScottsMiracle-Gro reported fiscal third-quarter adjusted EPS of $2.82, exceeding analyst expectations of $2.48 and rising from $2.59 a year earlier. Revenue reached $1.17 billion, broadly matching estimates and increasing approximately 1% year over year. Third-quarter results and updated outlook
• Positive Sentiment: The company raised its fiscal 2026 adjusted EPS outlook to $4.30-$4.45 from $4.15-$4.35, citing accelerated EPS growth. It reaffirmed low-single-digit U.S. Consumer sales growth and $275 million in free cash flow. Fiscal 2026 outlook
• Positive Sentiment: Net leverage improved to 3.78 times from the prior-year period, supporting the company’s efforts to strengthen its balance sheet. ScottsMiracle-Gro also declared a quarterly dividend of $0.66 per share, representing an annualized yield of about 3.7%.
• Positive Sentiment: Management scheduled an August 4 Investor Day to detail its “SMG 2.0” growth strategy, portfolio optimization, operational efficiencies, capital allocation and longer-term financial targets. Clearer targets could provide a catalyst if management presents credible plans for sustained sales and profitability growth. Investor Day details
• Neutral Sentiment: Investor attention is likely to remain focused on the upcoming Investor Day, where senior executives will address leverage reduction, investment, acquisitions and shareholder returns. The event may increase near-term volatility depending on the financial targets announced.
• Negative Sentiment: GAAP net income fell to $112.2 million from $149.1 million, while GAAP EPS declined 34% to $1.75. Gross margin also contracted 90 basis points to 31.2%, highlighting profitability and cost pressures beneath the adjusted EPS improvement. Q3 sales and earnings summary
• Negative Sentiment: Revenue growth was modest, and the company’s outlook still calls for only low-single-digit U.S. Consumer sales growth. Investors may therefore view the earnings beat as largely driven by cost or mix improvements rather than strong underlying demand.

Analyst Ratings Changes

A number of research firms recently weighed in on SMG. Wall Street Zen raised shares of Scotts Miracle-Gro from a “hold” rating to a “buy” rating in a report on Saturday, July 4th. Stifel Nicolaus cut their price objective on Scotts Miracle-Gro from $76.00 to $75.00 and set a “buy” rating for the company in a report on Monday, June 8th. Jefferies Financial Group restated a “buy” rating and set a $79.00 price objective on shares of Scotts Miracle-Gro in a research report on Wednesday, April 29th. Weiss Ratings restated a “hold (c)” rating on shares of Scotts Miracle-Gro in a research report on Monday, May 4th. Finally, Wells Fargo & Company lifted their price target on Scotts Miracle-Gro from $74.00 to $77.00 and gave the stock an “overweight” rating in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $75.20.

Scotts Miracle-Gro Stock Down 2.7%

The firm has a market capitalization of $3.98 billion, a P/E ratio of 59.49 and a beta of 1.81. The business’s 50-day simple moving average is $64.71 and its 200 day simple moving average is $64.26.

Scotts Miracle-Gro (NYSE:SMG) last announced its quarterly earnings data 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 net margin of 2.19% and a negative return on equity of 81.90%. The company had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.17 billion. During the same quarter in the prior year, the company earned $2.59 EPS. The firm’s revenue was up 1.1% on a year-over-year basis. Sell-side analysts predict that The Scotts Miracle-Gro Company will post 4.3 earnings per share for the current year.

Scotts Miracle-Gro Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be paid a $0.66 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $2.64 annualized dividend and a yield of 3.9%. Scotts Miracle-Gro’s payout ratio is currently 229.57%.

Institutional Trading of Scotts Miracle-Gro

Several institutional investors have recently added to or reduced their stakes in SMG. Cassaday & Co Wealth Management LLC purchased a new position in shares of Scotts Miracle-Gro in the first quarter worth about $26,000. Key Capital Management INC purchased a new stake in Scotts Miracle-Gro during the 4th quarter valued at about $29,000. Caitong International Asset Management Co. Ltd bought a new position in Scotts Miracle-Gro during the 3rd quarter worth approximately $32,000. Elevation Wealth Partners LLC grew its position in Scotts Miracle-Gro by 394.1% during the 2nd quarter. Elevation Wealth Partners LLC now owns 751 shares of the basic materials company’s stock worth $51,000 after acquiring an additional 599 shares during the last quarter. Finally, SBI Securities Co. Ltd. increased its stake in Scotts Miracle-Gro by 127.9% in the 4th quarter. SBI Securities Co. Ltd. now owns 889 shares of the basic materials company’s stock worth $52,000 after purchasing an additional 499 shares during the period. 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.