Zoetis Inc. (ZTS) Downgraded by Zacks Investment Research to “Hold”
According to Zacks, “Zoetis, one of the leading global animal health companies, is focused on both livestock and companion animals. The company’s companion animal business should continue to perform well. Zoetis' raised guidance for 2016, on the back of a strong performance in the first half of the year, is encouraging. Further, Zoetis’ efforts at boosting operational efficiency bode well. We are positive on Zoetis’ recent acquisition of Scandinavian Micro Biodevices, which should expand its offerings in the growing veterinary diagnostics segment of the animal health market. We expect to see more of such acquisitions/deals at the company as it continues to focus on the strategy of acquiring complementary businesses and products. However, performance of the livestock business is concerning. Moreover, headwinds remain in the form of disease outbreaks and stiff competition in the animal health space. Pipeline setbacks remain a concern as well.”
Other analysts also recently issued reports about the stock. Argus lifted their price objective on shares of Zoetis from $54.00 to $58.00 and gave the stock a below average rating in a report on Friday, September 9th. Credit Suisse Group AG reaffirmed an outperform rating and set a $60.00 price objective on shares of Zoetis in a report on Tuesday, August 23rd. Jefferies Group reaffirmed a buy rating and set a $58.00 price objective (up from $57.00) on shares of Zoetis in a report on Tuesday, June 14th. Citigroup Inc. downgraded shares of Zoetis from a buy rating to a neutral rating and lifted their price objective for the stock from $46.00 to $50.00 in a report on Friday, June 10th. They noted that the move was a valuation call. Finally, Barclays PLC lifted their price objective on shares of Zoetis from $45.00 to $49.00 and gave the stock an equal weight rating in a report on Thursday, August 4th. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating, eight have issued a buy rating and two have given a strong buy rating to the company. The stock currently has a consensus rating of Buy and an average price target of $55.27.
Shares of Zoetis (NYSE:ZTS) traded down 0.1044% during mid-day trading on Thursday, reaching $51.5961. The company’s stock had a trading volume of 1,459,386 shares. Zoetis has a 12 month low of $38.26 and a 12 month high of $52.64. The firm has a market cap of $25.54 billion, a price-to-earnings ratio of 40.1839 and a beta of 1.01. The company’s 50-day moving average is $51.26 and its 200 day moving average is $48.67.
Zoetis (NYSE:ZTS) last posted its quarterly earnings data on Wednesday, August 3rd. The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.44 by $0.05. Zoetis had a net margin of 13.15% and a return on equity of 77.58%. The company earned $1.20 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same period in the previous year, the firm posted $0.43 EPS. The firm’s revenue was up 2.8% compared to the same quarter last year. On average, equities analysts anticipate that Zoetis will post $1.91 EPS for the current year.
In other Zoetis news, Director Michael B. Mccallister bought 2,000 shares of the company’s stock in a transaction dated Tuesday, September 6th. The stock was acquired at an average price of $51.34 per share, with a total value of $102,680.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Heidi C. Chen sold 32,097 shares of the company’s stock in a transaction on Thursday, September 1st. The stock was sold at an average price of $50.98, for a total transaction of $1,636,305.06. Following the sale, the insider now directly owns 46,060 shares of the company’s stock, valued at approximately $2,348,138.80. The disclosure for this sale can be found here. Insiders own 0.05% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the company. NEXT Financial Group Inc raised its stake in Zoetis by 9.5% in the second quarter. NEXT Financial Group Inc now owns 2,136 shares of the company’s stock worth $101,000 after buying an additional 186 shares during the last quarter. Kelly Lawrence W & Associates Inc. CA raised its stake in Zoetis by 113.4% in the second quarter. Kelly Lawrence W & Associates Inc. CA now owns 2,446 shares of the company’s stock worth $116,000 after buying an additional 1,300 shares during the last quarter. NN Investment Partners Holdings N.V. acquired a new stake in Zoetis during the first quarter worth about $118,000. Northwestern Mutual Wealth Management Co. raised its stake in Zoetis by 22.8% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,566 shares of the company’s stock worth $121,000 after buying an additional 476 shares during the last quarter. Finally, Glenmede Trust Co. NA raised its stake in Zoetis by 4.4% in the second quarter. Glenmede Trust Co. NA now owns 2,950 shares of the company’s stock worth $139,000 after buying an additional 124 shares during the last quarter. 93.12% of the stock is owned by institutional investors and hedge funds.
Zoetis Inc is engaged in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The Company has a diversified business, marketing products across over eight core species: cattle, swine, poultry, sheep and fish (collectively, livestock), and dogs, cats and horses (collectively, companion animals), and within over five product categories: anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals.
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