Some The Scotts Miracle-Gro Company (NYSE:SMG) shareholders may be a little concerned to see that the CEO & Chairman of the Board, James Hagedorn, recently sold a substantial US$1.4m worth of stock at a price of US$75.68 per share. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Scotts Miracle-Gro
Notably, that recent sale by James Hagedorn is the biggest insider sale of Scotts Miracle-Gro shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$75.47. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in Scotts Miracle-Gro didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Scotts Miracle-Gro insiders own about US$44m worth of shares. That equates to 1.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Scotts Miracle-Gro Tell Us?
An insider hasn't bought Scotts Miracle-Gro stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Scotts Miracle-Gro. Every company has risks, and we've spotted 3 warning signs for Scotts Miracle-Gro (of which 1 can't be ignored!) you should know about.
But note: Scotts Miracle-Gro may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
