CFO Scheiwer’s Phantom‑Stock Surge Signals Confidence as Scotts Unbundles Hawthorne and Fires Up Buyback Plan

Insider Buying at Scotts Miracle‑Grove Signals Confidence Amid Mixed Guidance

On January 26, 2026, Chief Financial Officer Mark Scheiwer purchased 10.37 phantom‑stock units at $62.70 per unit, bringing his total phantom‑stock holdings to roughly 1,208 units. The transaction, filed on Form 4, coincides with a broader wave of insider buying that has kept the company’s leadership “on the buying end” for the past six months. While phantom‑stock awards are typically tied to performance targets rather than immediate liquidity, the size of the purchase relative to the company’s $3.64 billion market cap suggests that Scheiwer is reinforcing his stake in the firm’s long‑term trajectory.

The timing is noteworthy. Scotts’ latest earnings report delivered a mixed first‑quarter, with revenue and earnings beating forecasts but a slight dip in the stock price – down 8.24 % on the day of the filing. The market has also reacted to the announced divestiture of Hawthorne, the indoor‑garden arm, and the new $500 million share‑repurchase program. Investors often view insider purchases as an implicit vote of confidence; Scheiwer’s continued buying, even in a period of volatility, signals that he expects the company to rebound as the divestiture and repurchase plan take effect.

What Investors Should Take Away

• Signal of Alignment: Scheiwer’s repeated phantom‑stock purchases, coupled with the CEO’s recent share buybacks, indicate that senior management believes the stock is undervalued relative to its intrinsic worth. The 1,208 phantom‑stock units represent a sizeable long‑term commitment, which can dampen short‑term selling pressure from other insiders.
• Strategic Focus: The sale of Hawthorne is likely to streamline operations and free up capital. Combined with the buy‑back authorization, the company is positioning itself to return value to shareholders, a move that should support the share price once the divestiture closes.
• Risk of Over‑concentration: While the CFO’s stake is significant, the company’s overall insider concentration remains below the 10 % threshold, mitigating concerns about a single insider’s influence on governance.

Scheiwer Mark J: A Profile of Consistent Buying

Since assuming the CFO role, Scheiwer has shown a pattern of incremental phantom‑stock and common‑share purchases. His transactions span from early 2025 to the present, with 32 recorded buys—most of them small in dollar terms but cumulatively significant. He has consistently chosen to acquire phantom stock, a mechanism that rewards performance and aligns his interests with long‑term shareholder value. His common‑share buys, though modest (averaging around 3 shares per trade), demonstrate an active participation in the company’s equity structure. This dual approach is typical of finance executives who seek both performance incentives and ownership exposure.

Implications for the Company’s Future

The CFO’s continued buying, even amid a declining share price, suggests he anticipates a rebound as the company focuses on its core lawn and garden businesses and executes its share‑repurchase plan. For investors, this may be an opportune moment to reassess the valuation, especially given the 52‑week high at $72.23 and the 2025‑year‑low at $45.61. The market’s recent sentiment, reflected in a negative social‑media score but high buzz, indicates heightened attention that could translate into volatility—but also into potential upside if the company’s strategic initiatives deliver.

In sum, the latest insider transaction reinforces the narrative that Scotts Miracle‑Grove’s leadership believes in the company’s long‑term value proposition. For investors, monitoring Scheiwer’s activity alongside the company’s upcoming divestiture and buy‑back execution will be key to understanding the next chapter in Scotts’ shareholder story.