Brown Advisory Inc. Sells 676,142 Shares of Zoetis Inc. $ZTS

Key Points

• Brown Advisory Inc. reduced its Zoetis stake by 14.3% in the fourth quarter, selling 676,142 shares and leaving it with 4,047,625 shares valued at about $509.3 million. Institutional ownership remains very high, with 92.8% of Zoetis stock held by institutions and hedge funds.
• Zoetis is facing ongoing legal and sentiment pressure from multiple securities-fraud class-action notices tied to alleged misrepresentations about weakening veterinarian adoption and prescription trends. The article says these lawsuits are adding a negative overhang until there is more clarity on both the legal cases and business fundamentals.
• Analysts have turned more cautious after weak results, with the stock carrying a consensus "Hold" rating and an average target price of $133.92. Zoetis recently missed Q1 EPS and revenue estimates, and the shares were trading around $79.51, well below both their 50-day and 200-day moving averages.

Brown Advisory Inc. cut its position in Zoetis Inc. (NYSE:ZTS - Free Report) by 14.3% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,047,625 shares of the company's stock after selling 676,142 shares during the period. Brown Advisory Inc. owned 0.96% of Zoetis worth $509,272,000 at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in the company. Global Wealth Strategies & Associates acquired a new position in Zoetis during the 4th quarter valued at about $25,000. Lodestone Wealth Management LLC acquired a new position in Zoetis during the 4th quarter valued at about $30,000. KERR FINANCIAL PLANNING Corp acquired a new position in Zoetis during the 3rd quarter valued at about $31,000. Holos Integrated Wealth LLC acquired a new position in Zoetis during the 4th quarter valued at about $32,000. Finally, Elyxium Wealth LLC acquired a new position in Zoetis during the 4th quarter valued at about $32,000. 92.80% of the stock is currently owned by institutional investors and hedge funds.

Zoetis News Roundup

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: The recent analyst coverage split suggests some Wall Street firms still see value in Zoetis despite the recent selloff, which could help stabilize sentiment. Zoetis (ZTS) Stock Draws Fresh Price Target Split After Difficult Q1 Update
• Neutral Sentiment: Multiple law firms are urging investors who bought Zoetis shares between January 14, 2025 and May 6, 2026 to join or lead securities-fraud litigation ahead of the July 27 deadline; while procedural for now, the steady stream of notices keeps legal overhang in focus. Zoetis Inc. (ZTS) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit
• Neutral Sentiment: Additional class-action reminders from The Gross Law Firm, Bragar Eagel & Squire, and The Schall Law Firm add to the headline noise, but do not yet change Zoetis’s fundamentals on their own. ZTS Shareholder Alert: Zoetis Inc. Securities Class Action Lawsuit
• Neutral Sentiment: The lawsuits appear to center on alleged misrepresentations about weakening veterinarian adoption and prescription trends, which help explain why investors remain cautious after the company’s disappointing Q1 results. Lost Money on Zoetis Inc. (ZTS)? Join Class Action Suit Seeking Recovery
• Negative Sentiment: The legal overhang and repeated fraud allegations are a negative for sentiment and may keep pressure on Zoetis Inc. NYSE: ZTS until there is more clarity on the lawsuits and on whether the underlying business trends are improving. ROSEN, RECOGNIZED INVESTOR COUNSEL, Encourages Zoetis Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - ZTS

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Weiss Ratings downgraded Zoetis from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 27th. JPMorgan Chase & Co. lowered their price target on shares of Zoetis from $190.00 to $130.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Morgan Stanley reaffirmed an "overweight" rating and issued a $115.00 price target on shares of Zoetis in a report on Friday, May 15th. Citigroup lowered their price target on shares of Zoetis from $145.00 to $112.00 and set a "buy" rating on the stock in a report on Monday, May 18th. Finally, Wall Street Zen cut shares of Zoetis from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Six equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Zoetis presently has a consensus rating of "Hold" and an average target price of $133.92.

Zoetis Trading Down 2.3%

Shares of ZTS stock opened at $79.51 on Friday. The company's fifty day simple moving average is $96.94 and its two-hundred day simple moving average is $114.22. The company has a debt-to-equity ratio of 2.80, a current ratio of 3.15 and a quick ratio of 1.91. Zoetis Inc. has a 1 year low of $72.38 and a 1 year high of $167.38. The stock has a market capitalization of $33.33 billion, a price-to-earnings ratio of 13.19, a PEG ratio of 1.24 and a beta of 0.75.

Zoetis (NYSE:ZTS - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $1.53 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.60 by ($0.07). Zoetis had a net margin of 27.80% and a return on equity of 66.85%. The business had revenue of $2.26 billion for the quarter, compared to the consensus estimate of $2.30 billion. During the same period in the previous year, the firm earned $1.48 EPS. The company's revenue was up 2.9% compared to the same quarter last year. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. As a group, analysts anticipate that Zoetis Inc. will post 6.88 earnings per share for the current year.

Zoetis Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, July 20th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Monday, July 20th. This represents a $2.12 dividend on an annualized basis and a yield of 2.7%. Zoetis's payout ratio is presently 35.16%.

Insider Buying and Selling at Zoetis

In other Zoetis news, Director Frank A. Damelio bought 6,650 shares of the stock in a transaction on Wednesday, May 13th. The shares were acquired at an average price of $75.39 per share, with a total value of $501,343.50. Following the acquisition, the director directly owned 21,458 shares of the company's stock, valued at $1,617,718.62. The trade was a 44.91% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Michael B. Mccallister bought 3,000 shares of the stock in a transaction on Monday, May 11th. The shares were acquired at an average cost of $77.76 per share, for a total transaction of $233,280.00. Following the acquisition, the director directly owned 24,524 shares in the company, valued at approximately $1,906,986.24. This trade represents a 13.94% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 11,650 shares of company stock valued at $886,384 in the last 90 days. 0.22% of the stock is currently owned by company insiders.

Zoetis Profile

Zoetis Inc NYSE: ZTS is a global animal health company that develops, manufactures and markets a broad portfolio of products and services for companion animals and livestock. The company's offerings include pharmaceuticals, vaccines and biologics, parasiticides and anti-infectives, as well as diagnostic instruments, consumables and laboratory testing services. Zoetis serves the veterinary community, livestock producers and other animal-health customers with products designed to prevent, detect and treat disease and to support animal productivity and welfare.

Zoetis traces its roots to the animal health business of Pfizer and became an independent, publicly traded company following a 2013 separation and initial public offering.

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