Zoetis Inc. (ZTS) Downgraded to “Sell” at Zacks Investment Research
According to Zacks, “Zoetis, one of the leading global animal health companies, is focused on both livestock and companion animals. Performance of the livestock business is concerning. Headwinds remain in the form of disease outbreaks and stiff competition in the animal health space. Zoetis continued to witness a decline in the U.S. sales of swine products in the second quarter of 2016 due to increased competition. Meanwhile, sales of poultry products are declining globally due to competitive pressures. Pipeline setbacks remain a concern as well. However, the company’s companion animal business should continue to perform well. 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.”
Other research analysts have also issued reports about the company. Argus upped their price target on Zoetis from $54.00 to $58.00 and gave the stock a below average rating in a report on Friday, September 9th. Stifel Nicolaus restated a buy rating and issued a $58.00 target price on shares of Zoetis in a research note on Wednesday, October 12th. Bank of America Corp. began coverage on Zoetis in a research note on Thursday, September 29th. They issued a buy rating and a $60.00 target price for the company. Jefferies Group restated a buy rating and issued a $60.00 target price on shares of Zoetis in a research note on Wednesday, September 14th. Finally, Guggenheim restated a buy rating and issued a $60.00 target price on shares of Zoetis in a research note on Monday, July 18th. Three equities research analysts have rated the stock with a sell rating, two have given a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $55.50.
Shares of Zoetis (NYSE:ZTS) opened at 51.06 on Thursday. Zoetis has a 52 week low of $38.26 and a 52 week high of $53.14. The company’s 50 day moving average is $51.24 and its 200-day moving average is $49.17. The company has a market capitalization of $25.28 billion, a PE ratio of 39.77 and a beta of 1.00.
Zoetis (NYSE:ZTS) last issued its quarterly earnings results on Wednesday, August 3rd. The company reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.44 by $0.05. Zoetis had a return on equity of 77.58% and a net margin of 13.15%. The company earned $1.20 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same period in the previous year, the company earned $0.43 earnings per share. The company’s quarterly revenue was up 2.8% compared to the same quarter last year. On average, analysts expect that Zoetis will post $1.91 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, December 1st. Stockholders of record on Thursday, November 3rd will be issued a $0.095 dividend. This represents a $0.38 dividend on an annualized basis and a dividend yield of 0.74%. The ex-dividend date of this dividend is Tuesday, November 1st. Zoetis’s payout ratio is currently 29.69%.
In other news, insider Heidi C. Chen sold 32,097 shares of the firm’s stock in a transaction on Thursday, September 1st. The stock was sold at an average price of $50.98, for a total value of $1,636,305.06. Following the completion of the transaction, the insider now directly owns 46,060 shares of the company’s stock, valued at $2,348,138.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Michael B. Mccallister purchased 2,000 shares of the business’s stock in a transaction dated Tuesday, September 6th. The stock was bought at an average cost of $51.34 per share, with a total value of $102,680.00. The disclosure for this purchase can be found here. 0.05% of the stock is owned by insiders.
Several institutional investors have recently bought and sold shares of ZTS. NEXT Financial Group Inc raised its position 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 position 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. bought a new position in Zoetis during the first quarter worth approximately $118,000. Northwestern Mutual Wealth Management Co. raised its position 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 position 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. 93.14% of the stock is owned by hedge funds and other institutional investors.
Zoetis Company Profile
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Zoetis Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zoetis Inc. and related companies with MarketBeat.com's FREE daily email newsletter.