Compass Capital Management Inc. Cuts Stock Holdings in Zoetis Inc. $ZTS

Key Points

• Compass Capital Management cut its Zoetis stake by 84% in the first quarter, selling 52,578 shares and retaining 10,004 shares valued at approximately $1.18 million. Hedge funds and institutional investors collectively own 92.8% of Zoetis.
• Zoetis directors signaled confidence by purchasing 11,650 shares worth about $886,000 during the latest quarter. However, analysts remain cautious, with the stock carrying a consensus “Hold” rating and an average price target of $118.33.
• Zoetis shares opened at $77.37, near their one-year low, after the company missed quarterly earnings and revenue estimates. The company maintained a quarterly dividend of $0.53 per share, equivalent to a 2.7% annual yield.

Compass Capital Management Inc. reduced its stake in Zoetis Inc. (NYSE:ZTS - Free Report) by 84.0% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 10,004 shares of the company's stock after selling 52,578 shares during the period. Compass Capital Management Inc.'s holdings in Zoetis were worth $1,183,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. Brighton Jones LLC lifted its position in shares of Zoetis by 180.4% in the fourth quarter. Brighton Jones LLC now owns 4,629 shares of the company's stock worth $754,000 after buying an additional 2,978 shares in the last quarter. Empowered Funds LLC grew its holdings in Zoetis by 6.2% during the 1st quarter. Empowered Funds LLC now owns 11,293 shares of the company's stock valued at $1,859,000 after buying an additional 657 shares in the last quarter. Intech Investment Management LLC grew its holdings in Zoetis by 17.2% during the 1st quarter. Intech Investment Management LLC now owns 8,347 shares of the company's stock valued at $1,374,000 after buying an additional 1,224 shares in the last quarter. Sivia Capital Partners LLC increased its stake in Zoetis by 73.8% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,348 shares of the company's stock worth $522,000 after acquiring an additional 1,422 shares during the last quarter. Finally, Glenview Trust co increased its stake in Zoetis by 11.8% in the 2nd quarter. Glenview Trust co now owns 4,780 shares of the company's stock worth $745,000 after acquiring an additional 506 shares during the last quarter. Hedge funds and other institutional investors own 92.80% of the company's stock.

Insider Activity

In other news, Director Paul Bisaro bought 2,000 shares of Zoetis stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of $75.88 per share, with a total value of $151,760.00. Following the completion of the purchase, the director owned 27,862 shares in the company, valued at $2,114,168.56. The trade was a 7.73% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Frank A. Damelio bought 6,650 shares of the stock in a transaction dated Wednesday, May 13th. The stock was purchased 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 in the company, valued at approximately $1,617,718.62. The trade was a 44.91% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have bought 11,650 shares of company stock valued at $886,384. 0.22% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. HSBC lowered their target price on Zoetis from $140.00 to $95.00 and set a "buy" rating for the company in a research report on Monday, July 6th. Morgan Stanley reduced their price target on shares of Zoetis from $115.00 to $99.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 22nd. Wall Street Zen downgraded shares of Zoetis from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Argus reiterated a "hold" rating on shares of Zoetis in a research report on Wednesday, May 27th. Finally, TD Cowen dropped their price objective on shares of Zoetis from $150.00 to $104.00 and set a "buy" rating for the company in a research note on Tuesday, June 30th. Eight investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $118.33.

Zoetis Price Performance

NYSE:ZTS opened at $77.37 on Friday. The firm has a market capitalization of $32.44 billion, a price-to-earnings ratio of 12.83, a PEG ratio of 1.19 and a beta of 0.75. The company has a debt-to-equity ratio of 2.80, a current ratio of 3.15 and a quick ratio of 1.91. The business has a 50 day simple moving average of $77.05 and a 200-day simple moving average of $102.49. Zoetis Inc. has a 1 year low of $71.47 and a 1 year high of $160.48.

Zoetis (NYSE:ZTS - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.07). The company had revenue of $2.26 billion for the quarter, compared to the consensus estimate of $2.30 billion. Zoetis had a net margin of 27.80% and a return on equity of 66.85%. The business's revenue for the quarter was up 2.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.48 EPS. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. Equities analysts forecast that Zoetis Inc. will post 6.87 EPS for the current year.

Zoetis Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, July 20th will be given a dividend of $0.53 per share. The ex-dividend date 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 35.16%.

About Zoetis

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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