Clifford Swan Investment Counsel LLC Grows Holdings in Zoetis Inc. $ZTS

Key Points

• Clifford Swan Investment Counsel LLC more than doubled its Zoetis position in Q1, increasing holdings by 115.7% to 148,151 shares valued at about $17.5 million.
• Several other institutional investors also boosted or initiated stakes in Zoetis, and hedge funds and institutions now own 92.8% of the company’s shares.
• Zoetis recently missed earnings and revenue estimates, while analysts remain mixed with a consensus Hold rating; the stock also faces ongoing securities class-action litigation concerns even as the company continues to pay a quarterly dividend.

Clifford Swan Investment Counsel LLC lifted its stake in Zoetis Inc. (NYSE:ZTS - Free Report) by 115.7% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 148,151 shares of the company's stock after acquiring an additional 79,463 shares during the quarter. Clifford Swan Investment Counsel LLC's holdings in Zoetis were worth $17,513,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. J. Stern & Co. LLP raised its position in Zoetis by 12,431.2% in the fourth quarter. J. Stern & Co. LLP now owns 24,069,492 shares of the company's stock valued at $3,028,423,000 after purchasing an additional 23,877,416 shares during the period. Norges Bank purchased a new position in shares of Zoetis during the fourth quarter worth $734,425,000. Vanguard Group Inc. boosted its position in shares of Zoetis by 12.9% during the fourth quarter. Vanguard Group Inc. now owns 47,780,974 shares of the company's stock worth $6,011,802,000 after buying an additional 5,474,210 shares during the period. Nordea Investment Management AB grew its stake in shares of Zoetis by 79.2% in the fourth quarter. Nordea Investment Management AB now owns 4,932,787 shares of the company's stock valued at $622,222,000 after buying an additional 2,179,578 shares in the last quarter. Finally, Van ECK Associates Corp grew its stake in shares of Zoetis by 269.0% in the fourth quarter. Van ECK Associates Corp now owns 2,387,059 shares of the company's stock valued at $300,340,000 after buying an additional 1,740,113 shares in the last quarter. Hedge funds and other institutional investors own 92.80% of the company's stock.

Insider Activity

In related news, Director Paul Bisaro acquired 2,000 shares of the stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average cost of $75.88 per share, with a total value of $151,760.00. Following the completion of the transaction, the director owned 27,862 shares in the company, valued at $2,114,168.56. This represents a 7.73% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Michael B. Mccallister bought 3,000 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were purchased at an average price of $77.76 per share, for a total transaction of $233,280.00. Following the completion of the purchase, the director directly owned 24,524 shares of the company's stock, valued at approximately $1,906,986.24. This trade represents a 13.94% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders purchased 11,650 shares of company stock worth $886,384. 0.22% of the stock is currently owned by company insiders.

Key Headlines Impacting Zoetis

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Zoetis was named as title sponsor of PawsitiveIntelligence.ai, adding a small brand-visibility and industry-partnership angle. Pawsitive Holdings Announces Zoetis as Title Sponsor of PawsitiveIntelligence.ai
• Positive Sentiment: Some commentary argued Zoetis offers an attractive risk-reward setup, suggesting a more constructive long-term view despite recent volatility. Zoetis: An Attractive Risk-Reward Opportunity
• Neutral Sentiment: Zoetis’ upcoming second-quarter earnings report is getting attention, with analysts expecting modest growth and investors watching for updated guidance and commentary on diagnostics demand. Zoetis Earnings Preview: What to Expect
• Neutral Sentiment: Zoetis announced it will acquire VitalRADS, a veterinary teleradiology platform, which could support its diagnostics strategy and AI-enabled offerings. Zoetis Gains as VitalRADS Deal Boosts Diagnostics Narrative
• Negative Sentiment: Multiple law firms issued reminders and investor alerts tied to a securities class action against Zoetis, reinforcing concerns about litigation risk and possible reputational damage. Deadline Alert for CALX, AVAV, ZTS, LCID
• Negative Sentiment: Additional class-action notices specifically target Zoetis shareholders, underscoring that the lawsuit remains an active overhang for the stock. ZTS Shareholder Alert
• Negative Sentiment: The legal backdrop follows earlier reports alleging investor harm and reminding shareholders of the same July 27 deadline, keeping sentiment cautious. Zoetis Inc. (ZTS) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Argus reissued a "hold" rating on shares of Zoetis in a research note on Wednesday, May 27th. Citigroup dropped their target price on Zoetis from $145.00 to $112.00 and set a "buy" rating for the company in a research report on Monday, May 18th. UBS Group cut their price target on shares of Zoetis from $130.00 to $99.00 and set a "neutral" rating on the stock in a research note on Friday, May 8th. TD Cowen reduced their price target on shares of Zoetis from $150.00 to $104.00 and set a "buy" rating on the stock in a research report on Tuesday, June 30th. Finally, Barclays lowered their price objective on shares of Zoetis from $136.00 to $85.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 1st. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $120.83.

Zoetis Stock Down 0.6%

Shares of NYSE ZTS opened at $76.44 on Friday. The stock has a market cap of $32.05 billion, a P/E ratio of 12.68, a PEG ratio of 1.20 and a beta of 0.75. The company has a current ratio of 3.15, a quick ratio of 1.91 and a debt-to-equity ratio of 2.80. Zoetis Inc. has a 12-month low of $71.47 and a 12-month high of $160.48. The business's fifty day simple moving average is $77.33 and its 200-day simple moving average is $106.03.

Zoetis (NYSE:ZTS - Get Free Report) last released 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 company had revenue of $2.26 billion during the quarter, compared to analysts' expectations of $2.30 billion. During the same quarter last year, the business posted $1.48 earnings per share. The company's revenue for the quarter was up 2.9% on a year-over-year basis. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. As a group, equities analysts predict that Zoetis Inc. will post 6.87 EPS for the current fiscal year.

Zoetis Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, July 20th will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Monday, July 20th. Zoetis's dividend payout ratio (DPR) is presently 35.16%.

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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