Why Scotts Miracle-Gro Stock Was Moving Higher Today

Shares of Scotts Miracle-Gro (NYSE: SMG) were moving higher today after the lawn-care products company offered an update to its fiscal second-quarter performance this morning. Scotts didn't report preliminary results but said it expects a Q2 net debt/EBITDA (earnings before interest, taxes, depreciation, and amortization) leverage ratio in the range of 6, which is below the facility covenant limit of 6.5 for the second quarter. Investors have been concerned about the company's cash position as its sales fell sharply after a boom during the pandemic, so it's a good sign that it continues to be within its debt covenants.