Executives at Scotts Miracle-Gro Co. (NYSE:SMG), a leading company in the lawn and garden industry, have recently sold a significant amount of company stock, transactions totaling over $5.6 million. The sales occurred over two days, with prices ranging from $66.99 to $70.52 per share.
On May 7, 2024, a total of 31,000 shares were sold at weighted average prices between $68.87 and $70.79. The first batch of 21,375 shares was sold at an average price of $69.29, while the subsequent 9,625 shares fetched an average of $70.52 each. The following day, on May 8, an additional 52,644 shares were traded by the executives. These transactions saw 47,080 shares sold at an average price of $66.99, and 5,564 shares at an average of $67.57.
The recent filings with the Securities and Exchange Commission reveal that these sales were executed by members of the Hagedorn family and associated partnerships, which have played a significant role in the company's leadership and ownership. James Hagedorn, Chairman, CEO, and President of Scotts Miracle-Gro, along with Katherine Hagedorn Littlefield, Robert Hagedorn, Susan Hagedorn, and Nathan Baxter (NYSE:BAX), Executive Vice President and Chief Operating Officer, are all general partners in the Hagedorn Partnership, L.P., which directly held the sold shares.
Following these transactions, the Hagedorn Partnership still retains a significant stake in the company, with over 13 million shares. It should be noted that each of the reporting persons has disclaimed beneficial ownership of the reported securities, except to the extent of their pecuniary interest therein.
The sales represent a notable change in the ownership structure at Scotts Miracle-Gro, although the reasons behind the stock sales have not been publicly disclosed. The company's stock performance and future outlook remain of interest to investors and market analysts alike.
InvestingPro Insights
Amidst the recent stock transactions by executives at Scotts Miracle-Gro Co. (NYSE:SMG), the company’s financial health and stock performance metrics provide valuable context for investors. According to InvestingPro data, Scotts Miracle-Gro has a market capitalization of $3.87 billion. Despite a challenging period, the company’s revenue stands at $3.429 billion over the last twelve months as of Q2 2024, with a gross profit margin of 23.35%, indicating a solid profit from its core operations.
InvestingPro Tips suggest that the negative revenue growth of -8.26% over the same period could be a point of concern for investors evaluating the company's growth trajectory. Additionally, the adjusted P/E ratio of -64.6 signals that the market has concerns about the company's earnings potential in the near term. These insights may shed light on the broader context within which the Hagedorn family and associated partnerships decided to sell shares.
Investors keeping an eye on Scotts Miracle-Gro’s performance will note the stock’s resilience with a year-to-date price total return of 8.28% and a 3-month price total return of 23.75%. The dividend yield of 3.87% as of the latest dividend ex-date on February 22, 2024, also remains an attractive feature for income-focused investors.
For those seeking further analysis and data points, InvestingPro offers additional insights. There are currently more tips available that could help investors make more informed decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to comprehensive financial details and investment tips tailored to Scotts Miracle-Gro and other stocks of interest.
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