Scotts Miracle-Gro Co CEO Dumps 16,773 Shares (SMG)

James Hagedorn, the Chairman and CEO of Scotts Miracle-Gro Co (SMG) has sold 16773 shares of holdings in SMG.  Mr Hagedorn sold his shares in many smaller blocks in the $56 – $57 range on June 26, 2014.  Total proceeds from the insider sale is approximately $1,000,000.

After the CEO’s share dispositions, Mr. Hagedorn still owns 37,798 shares directly,  plus another 44,000 shares in other accounts.

The date of the transaction to sell his Scotts Miracle-Gro Co shares, per the Form 4 filed with the SEC on June 27, 2014 was June 26, 2014.

Scotts Miracle-Gro Co (SMG) is currently trading at $56.80 today, up 58 cents on very light volume this morning.  Mr Hagedorn’s dispositions comes as SMG shares are well off it’s 52 week high of $64.00.   It’s traded as low as $47.83 this year.   This sale is by no means an indication that the CEO believes his company’s shares are overvalued.  Insiders often sell off portions of their company stake to meet financial obligations or to diversify their financial holdings.

Scotts Miracle-Gro Co is currently followed by 12 analysts with an average rating of HOLD.  SMG has an average price target of $63.20.  So analysts only see a potential gain of 10% from today’s stock price.  That, along with the HOLD rating doesn’t make anyone want to hold on to too much stock in SMG at this time.   SMG currently has a dividend yield of 3% which does help add to the return on investment in the stock.

Scotts Miracle-Gro Co reports its Q3 earnings on August 4, 2014, with a consensus earnings estimate of $2.27 versus last quarters earnings of $2.17.

Scotts Miracle-Gro Co manufactures and sells consumer lawn and garden growing products.  It markets mainly through big box home centers, nurseries, warehouse clubs and hardware stores.  It also operates a lawn care business.

Here’s the 3 months chart on Scotts Miracle-Gro Co (SMG)