Don't Ignore The Insider Selling In Scotts Miracle-Gro

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.

View our latest analysis for Scotts Miracle-Gro

The Last 12 Months Of Insider Transactions At Scotts Miracle-Gro

In fact, the recent sale by James Hagedorn was the biggest sale of Scotts Miracle-Gro shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$75.47. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

In the last year Scotts Miracle-Gro insiders didn't buy any company stock. 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!

I will like Scotts Miracle-Gro better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Scotts Miracle-Gro Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Scotts Miracle-Gro insiders own 1.0% of the company, worth about US$44m. 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 sold Scotts Miracle-Gro shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Scotts Miracle-Gro (of which 1 is significant!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.