In a recent transaction, Stephen L. Johnson, a director of Scotts Miracle-Gro Co (NYSE:SMG), sold 960 shares of the company's common stock. The transaction was executed on August 1, 2024, with the shares sold at a price of $77.9464 each, amounting to a total value of $74,828.
The sale has adjusted Johnson's holdings in the company to a total of 22,940 shares of common stock. This move by the director comes amid the regular financial disclosures that corporate insiders are required to make. The details of the transaction were publicly filed and are accessible for investors seeking to understand the trading activities of the company's insiders.
Scotts Miracle-Gro, known for its products in the agriculture chemicals sector, is a well-established entity in the industry. Insider transactions such as these are often closely watched by investors as they can provide insights into the confidence levels of company executives and directors in the firm's prospects.
The stock of Scotts Miracle-Gro is traded on the New York Stock Exchange under the ticker symbol SMG. Investors and market watchers may keep an eye on the trading patterns and holdings of company insiders for indications of the company's performance and strategic direction.
In other recent news, Scotts Miracle-Gro reported a strong Q3 performance, with significant growth in its U.S. Consumer lawn and garden business and a profitable quarter for its Hawthorne Division. The U.S. Consumer segment saw an 11% increase in net sales, reaching $1 billion, while the Hawthorne Division experienced a 6% rise in branded sales and a 144% increase in profit. The company forecasts a fiscal year-end within the 5% to 7% net sales growth guidance range and an adjusted EBITDA of $530 million to $540 million.
Scotts Miracle-Gro plans to generate $1 billion in free cash flow by fiscal year-end, reduce debt by $350 million, and achieve above 30% adjusted gross margins within the next three years. The company has also announced additional investments in its brands and a new advisory role for Martha Stewart as the Honorary Chief Gardening Officer. These are among the recent developments that outline the company's strategic initiatives and focus on growth.
While the company acknowledges the need for improvement in certain areas, such as the lawn fertilizer category, it also expresses optimism for Q4 based on improved product responses and pricing plans. The company reiterated its commitment to achieving a 250 basis point margin recovery in 2024. Despite facing challenges such as weather conditions and consumer confidence, Scotts Miracle-Gro navigates these market challenges with strategic initiatives and a focus on growth.
InvestingPro Insights
As investors digest the news of the recent insider transaction at Scotts Miracle-Gro Co (NYSE:SMG), it's worth noting some key financial metrics and insights from InvestingPro that could provide a broader context to the director's decision to sell shares.
Despite a challenging period, Scotts Miracle-Gro has shown some promising signs. The company has experienced a significant price uptick over the last six months, with a 33.81% return, reflecting a potential resurgence in investor confidence. This is further supported by a robust 1 Month Price Total Return of 18.74%, as of the latest data. Furthermore, the company's commitment to rewarding shareholders is evident through its 20 consecutive years of maintained dividend payments, boasting a current dividend yield of 3.51%.
Looking at the company's financial health, the data indicates that Scotts Miracle-Gro has a market capitalization of $4.12 billion. While the company has been grappling with profitability, as seen by a negative P/E ratio of -15.82, analysts predict the company will be profitable this year, which could signal a turnaround in its financial performance. Moreover, the InvestingPro Tips highlight that Scotts Miracle-Gro has a high shareholder yield and is expected to see net income growth this year, which may be factors that could influence future stock performance.
Investors considering Scotts Miracle-Gro as a potential addition to their portfolio can find additional insights and tips on InvestingPro. Currently, there are 9 more InvestingPro Tips available, which can provide a deeper analysis of the company's financials and future outlook. These tips, along with real-time data, are accessible at: https://www.investing.com/pro/SMG
It's important for investors to consider these insights in conjunction with insider trading activity to make informed decisions. The next earnings date for Scotts Miracle-Gro is scheduled for November 6, 2024, which will be a key event for the company and its stakeholders.
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