Zacks Investment Research cut shares of Zoetis (NYSE:ZTS) from a buy rating to a hold rating in a research report sent to investors on Saturday.

According to Zacks, “Zoetis’ companion animal business performed impressively on higher international sales of Apoquel and Simparica and increased dermatology sales. This growth more than offset the negative impact of the implementation the Veterinary Feed Directive in the United States. Zoetis’ industry leading dermatology portfolio with products like Apoquel and Cytopoint, new oral parasiticide, Simparica, and several other new companion animal products is expected to drive further growth. The acquisition of Nexvet Biopharma will further strengthen Zoetis’ chronic pain management franchise.Shares of Zoetis have outperformed the industry in 2017 in the last six months. However, Zoetis faces stiff competition from companies like Merck Animal Health. Disease outbreak among animals is a material cause of concern for Zoetis’ livestock products.”

Other research analysts also recently issued research reports about the stock. Cantor Fitzgerald reiterated a buy rating and set a $75.00 target price on shares of Zoetis in a research report on Tuesday, October 24th. Stifel Nicolaus reiterated a buy rating and set a $65.00 target price on shares of Zoetis in a research report on Tuesday, October 24th. BidaskClub downgraded shares of Zoetis from a strong-buy rating to a buy rating in a research report on Wednesday, September 20th. Jefferies Group reiterated a buy rating on shares of Zoetis in a research report on Friday, November 10th. Finally, Cowen set a $80.00 price objective on shares of Zoetis and gave the stock a buy rating in a report on Friday, November 17th. One analyst has rated the stock with a sell rating, five have issued a hold rating and fourteen have issued a buy rating to the company. The stock has an average rating of Buy and a consensus target price of $70.83.

Zoetis (NYSE:ZTS) opened at $74.24 on Friday. The company has a debt-to-equity ratio of 2.45, a quick ratio of 1.95 and a current ratio of 2.80. Zoetis has a 1 year low of $52.00 and a 1 year high of $74.42. The stock has a market cap of $36,180.00, a price-to-earnings ratio of 39.07, a P/E/G ratio of 1.91 and a beta of 1.06.

Zoetis (NYSE:ZTS) last released its earnings results on Thursday, November 2nd. The company reported $0.65 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.63 by $0.02. Zoetis had a net margin of 18.29% and a return on equity of 62.39%. The company had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.32 billion. During the same quarter in the previous year, the company earned $0.52 EPS. Zoetis’s quarterly revenue was up 8.5% compared to the same quarter last year. research analysts expect that Zoetis will post 2.37 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 1st. Shareholders of record on Friday, January 19th will be issued a dividend of $0.126 per share. This is an increase from Zoetis’s previous quarterly dividend of $0.11. The ex-dividend date is Thursday, January 18th. This represents a $0.50 annualized dividend and a yield of 0.68%. Zoetis’s dividend payout ratio is presently 22.11%.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Janus Henderson Group PLC raised its holdings in shares of Zoetis by 7,717.4% in the second quarter. Janus Henderson Group PLC now owns 5,809,086 shares of the company’s stock valued at $362,372,000 after purchasing an additional 5,734,776 shares during the last quarter. BlackRock Inc. raised its holdings in shares of Zoetis by 3.9% in the second quarter. BlackRock Inc. now owns 37,495,299 shares of the company’s stock valued at $2,338,957,000 after purchasing an additional 1,412,829 shares during the last quarter. AJO LP raised its holdings in shares of Zoetis by 4,506.8% in the second quarter. AJO LP now owns 1,271,425 shares of the company’s stock valued at $79,311,000 after purchasing an additional 1,243,826 shares during the last quarter. Thrivent Financial For Lutherans raised its holdings in shares of Zoetis by 642.7% in the second quarter. Thrivent Financial For Lutherans now owns 1,336,033 shares of the company’s stock valued at $83,342,000 after purchasing an additional 1,156,142 shares during the last quarter. Finally, Vanguard Group Inc. raised its holdings in shares of Zoetis by 2.8% in the second quarter. Vanguard Group Inc. now owns 33,654,686 shares of the company’s stock valued at $2,099,379,000 after purchasing an additional 910,265 shares during the last quarter. Hedge funds and other institutional investors own 93.19% of the company’s stock.

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About Zoetis

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 business, commercializing products across eight core species: cattle, swine, poultry, sheep and fish (collectively, livestock) and dogs, cats and horses (collectively, companion animals), and within five product categories: anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals.

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