5 Best Tobacco and Cigarette Stocks To Buy

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

Number of Hedge Fund Holders: 29

The Scotts Miracle-Gro Company (NYSE:SMG) was founded in 1868 and is headquartered in Marysville, Ohio. The Scotts Miracle-Gro Company (NYSE:SMG) provides cannabis products under its Hawthorne division. The company paid a $0.66 per share quarterly dividend to shareholders on December 9. The dividend yield on December 15 came in at 5.22%. 

On November 8, Barclays analyst Gaurav Jain upgraded The Scotts Miracle-Gro Company (NYSE:SMG) to Overweight from Equal Weight with an unchanged price target of $75. The analyst expects The Scotts Miracle-Gro Company (NYSE:SMG) to “delever rapidly from here,” even under multiple different macro scenarios. Over the next three years, the company should deliver $6-$8 per share in free cash flow, the analyst wrote in a research note. He cited the stock’s 16% free cash flow yield for the upgrade.

According to Insider Monkey’s Q3 data, The Scotts Miracle-Gro Company (NYSE:SMG) was part of 29 hedge fund portfolios, compared to 25 in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the leading position holder in the company, with 1.5 million shares worth $67.3 million. 

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