10 Worst Farmland and Agriculture Stocks to Buy According to Short Sellers

4. The Scotts Miracle-Gro Company (NYSE:SMG)

Number of Hedge Funds: 33

Short % of Float: 7.01%

Scotts Miracle-Gro Company (NYSE:SMG) specializes in lawn and garden care, building its reputation by supplying a portfolio of fertilizer, hydroponic products, and soil solutions. The company caters to both traditional and indoor growers, and its operations are spread across the consumer lawn care market and the hydroponics sector.

Reflecting the stable demand in its core U.S. Consumer segment, The Scotts Miracle-Gro Company recorded $417 million in net sales for Q1 ended December 31, 2024. The company neutralized expected softness in its Hawthorne hydroponics division with an 11% volume increase in consumer lawn and garden products, reflecting its strong performance. Furthermore, lower material costs and supply chain efficiencies resulted in the gross margin rising to 24%, a significant improvement.

Additionally, Scotts Miracle-Gro Company’s (NYSE:SMG) multi-year Project Springboard initiative has already delivered $400 million in savings, showcasing the company’s focus on operational improvements. As part of its long-term efficiency plan, the company strives to cut an additional $75 million in supply chain costs in fiscal 2025. Alongside that, the company is growing its investments in marketing and consumer outreach, which includes a $40 million increase in brand support to drive engagement across all retail mediums.

The company’s Board of Directors authorized a cash dividend of $0.66 per share to enhance shareholder returns. It is to be paid on March 7, 2025. In addition to this, with a clear direction toward further balance sheet improvements, Scotts Miracle-Gro Company (NYSE:SMG) is lowering its leverage ratio to 4.52x net debt to adjusted EBITDA to continue to pay down debt.

However, amid the ongoing challenges in the hydroponics sector, short selling activity has remained high for the stock, placing it among the Worst Farmland and Agriculture Stocks to Buy.