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.”
A number of other research analysts also recently commented on the stock. Argus raised their target price on shares of Zoetis from $54.00 to $58.00 and gave the company a below average rating in a research report on Friday, September 9th. Bank of America Corp. started coverage on shares of Zoetis in a research report on Thursday, September 29th. They issued a buy rating and a $60.00 price objective on the stock. Credit Suisse Group AG reaffirmed an outperform rating and issued a $60.00 price objective on shares of Zoetis in a research report on Tuesday, August 23rd. Guggenheim reaffirmed a positive rating and issued a $60.00 price objective on shares of Zoetis in a research report on Monday, August 22nd. Finally, Jefferies Group reaffirmed a buy rating and issued a $60.00 price objective on shares of Zoetis in a research report on Wednesday, September 14th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating, eight have assigned a buy rating and two have given a strong buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus price target of $55.27.
Shares of Zoetis (NYSE:ZTS) traded down 0.1044% during mid-day trading on Thursday, reaching $51.5961. 1,459,386 shares of the company’s stock were exchanged. Zoetis has a one year low of $38.26 and a one year high of $52.64. The company’s 50-day moving average price is $51.26 and its 200-day moving average price is $48.67. The company has a market capitalization of $25.54 billion, a PE ratio of 40.1839 and a beta of 1.01.
Zoetis (NYSE:ZTS) last posted its earnings results on Wednesday, August 3rd. The company reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.05. The business had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.17 billion. Zoetis had a net margin of 13.15% and a return on equity of 77.58%. The company’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.43 EPS. On average, equities analysts expect that Zoetis will post $1.91 earnings per share for the current year.
In other Zoetis news, insider Andrew Fenton sold 13,870 shares of the stock in a transaction dated Friday, September 2nd. The stock was sold at an average price of $51.25, for a total transaction of $710,837.50. Following the completion of the sale, the insider now directly owns 17,719 shares in the company, valued at approximately $908,098.75. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Heidi C. Chen sold 32,097 shares of the stock in a transaction dated 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 sale, the insider now owns 46,060 shares of the company’s stock, valued at $2,348,138.80. The disclosure for this sale can be found here. Company insiders own 0.05% of the company’s stock.
Hedge funds have recently modified their holdings of the company. NEXT Financial Group Inc increased its stake in shares of 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 increased its stake in shares of 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 shares of Zoetis during the first quarter worth $118,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of 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 increased its stake in shares of 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. Hedge funds and other institutional investors own 93.12% of the company’s stock.
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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