Zoetis Inc. (ZTS) Downgraded by Zacks Investment Research to Hold
According to Zacks, “Zoetis reported better-than-expected third-quarter results, wherein earnings surpassed estimates by a wide margin. It also managed to beat revenue estimates, albeit marginally. Zoetis’ companion animal business continued to perform well in the reported quarter.Zoetis has once again raised its earnings outlook for 2016 on the back of a strong year-to-date performance, which is encouraging. Further, its efforts on 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 acquiring complementary businesses and products.However, performance of the livestock business is concerning. Headwinds remain in the form of disease outbreaks and stiff competition in the animal health space.”
Other research analysts have also issued reports about the company. Argus raised their price target on Zoetis from $54.00 to $58.00 and gave the stock a below average rating in a research report on Friday, September 9th. Jefferies Group reiterated a buy rating and issued a $63.00 target price on shares of Zoetis in a report on Sunday, October 16th. Stifel Nicolaus reiterated a buy rating and issued a $58.00 target price on shares of Zoetis in a report on Wednesday, October 12th. Bank of America Corp. started coverage on Zoetis in a report on Thursday, September 29th. They issued a buy rating and a $60.00 target price for the company. Finally, Barclays PLC lifted their target price on Zoetis from $45.00 to $49.00 and gave the company an equal weight rating in a report on Thursday, August 4th. Two analysts have rated the stock with a sell rating, four have issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. Zoetis presently has a consensus rating of Buy and a consensus target price of $55.83.
Shares of Zoetis (NYSE:ZTS) opened at 50.00 on Monday. Zoetis has a 1-year low of $38.26 and a 1-year high of $53.14. The firm’s 50-day moving average price is $50.31 and its 200 day moving average price is $49.55. The stock has a market cap of $24.69 billion, a P/E ratio of 36.05 and a beta of 1.05.
Zoetis (NYSE:ZTS) last released its quarterly earnings results on Wednesday, November 2nd. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.46 by $0.06. Zoetis had a return on equity of 72.96% and a net margin of 14.10%. The business earned $1.20 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same period last year, the business posted $0.50 earnings per share. The company’s quarterly revenue was up 2.2% on a year-over-year basis. On average, equities analysts expect that Zoetis will post $1.94 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, December 1st. Investors of record on Thursday, November 3rd will be given a $0.095 dividend. This represents a $0.38 annualized dividend and a yield of 0.76%. The ex-dividend date is Tuesday, November 1st. Zoetis’s dividend payout ratio (DPR) is presently 27.54%.
In related news, insider Heidi C. Chen sold 32,097 shares of the business’s 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 transaction, the insider now owns 46,060 shares in the company, valued at approximately $2,348,138.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Andrew Fenton sold 13,870 shares of the business’s stock in a transaction dated Friday, September 2nd. The shares were sold at an average price of $51.25, for a total value of $710,837.50. Following the completion of the transaction, the insider now owns 17,719 shares in the company, valued at approximately $908,098.75. The disclosure for this sale can be found here. 0.05% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of ZTS. Nuveen Asset Management LLC boosted its position in shares of Zoetis by 29.0% in the first quarter. Nuveen Asset Management LLC now owns 43,107 shares of the company’s stock valued at $1,911,000 after buying an additional 9,682 shares during the period. Envestnet Asset Management Inc. boosted its position in shares of Zoetis by 84.2% in the first quarter. Envestnet Asset Management Inc. now owns 70,988 shares of the company’s stock valued at $3,147,000 after buying an additional 32,439 shares during the period. A.R.T. Advisors LLC bought a new position in shares of Zoetis during the first quarter valued at about $692,000. Jones Financial Companies Lllp boosted its position in shares of Zoetis by 1.9% in the first quarter. Jones Financial Companies Lllp now owns 6,039 shares of the company’s stock valued at $268,000 after buying an additional 114 shares during the period. Finally, Moore Capital Management LP bought a new position in shares of Zoetis during the first quarter valued at about $612,000. Hedge funds and other institutional investors own 94.94% 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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