Diamond Hill Capital Management Inc. Increases Stake in Zoetis Inc. $ZTS

Key Points

• Diamond Hill Capital Management increased its Zoetis stake by 17.3% in the fourth quarter, ending with 3.16 million shares worth about $397.4 million and making ZTS its 11th-largest holding.
• Zoetis reported mixed quarterly results, with EPS of $1.53 missing estimates and revenue of $2.26 billion slightly below expectations, though revenue still grew 2.9% year over year.
• The stock has drawn mixed analyst sentiment, with a consensus “Hold” rating and average price target of $134.75, while the company also announced a quarterly dividend of $0.53 per share.

Diamond Hill Capital Management Inc. raised its position in shares of Zoetis Inc. (NYSE:ZTS - Free Report) by 17.3% in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 3,158,638 shares of the company's stock after purchasing an additional 465,839 shares during the quarter. Zoetis accounts for about 2.0% of Diamond Hill Capital Management Inc.'s investment portfolio, making the stock its 11th biggest holding. Diamond Hill Capital Management Inc. owned 0.72% of Zoetis worth $397,420,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the company. Global Wealth Strategies & Associates purchased a new stake in shares of Zoetis during the fourth quarter valued at approximately $25,000. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Zoetis in the third quarter worth $31,000. Lodestone Wealth Management LLC bought a new position in Zoetis during the 4th quarter valued at about $30,000. Elyxium Wealth LLC bought a new position in Zoetis during the fourth quarter valued at approximately $32,000. Finally, Holos Integrated Wealth LLC bought a new position in shares of Zoetis during the 4th quarter valued at $32,000. Institutional investors own 92.80% of the company's stock.

Analyst Upgrades and Downgrades

ZTS has been the topic of several research reports. Piper Sandler reissued a "neutral" rating and issued a $135.00 target price (down from $190.00) on shares of Zoetis in a research report on Thursday, January 22nd. Bank of America upped their price target on shares of Zoetis from $135.00 to $140.00 and gave the company a "neutral" rating in a research report on Friday, February 13th. Weiss Ratings cut shares of Zoetis from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 27th. Morgan Stanley restated an "overweight" rating and set a $115.00 target price on shares of Zoetis in a research report on Friday, May 15th. Finally, Wall Street Zen cut shares of Zoetis from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Seven investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $134.75.

Zoetis Stock Performance

ZTS opened at $80.13 on Friday. The company has a 50 day simple moving average of $108.88 and a two-hundred day simple moving average of $118.92. 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 firm has a market cap of $33.59 billion, a P/E ratio of 13.29, a PEG ratio of 1.30 and a beta of 0.87. Zoetis Inc. has a 1-year low of $72.38 and a 1-year high of $172.23.

Zoetis (NYSE:ZTS - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $1.53 EPS for the quarter, missing the consensus estimate of $1.60 by ($0.07). Zoetis had a net margin of 27.80% and a return on equity of 66.85%. The firm had revenue of $2.26 billion for the quarter, compared to the consensus estimate of $2.30 billion. During the same quarter in the previous year, the business earned $1.48 earnings per share. The firm'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. Equities analysts forecast that Zoetis Inc. will post 6.88 earnings per share for the current fiscal year.

Zoetis Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, July 20th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Monday, July 20th. Zoetis's payout ratio is presently 35.16%.

Insider Activity

In other Zoetis news, Director Paul Bisaro acquired 2,000 shares of the company's stock in a transaction dated Wednesday, May 13th. The stock was purchased 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 directly owned 27,862 shares in the company, valued at approximately $2,114,168.56. The trade was a 7.73% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Frank A. Damelio bought 6,650 shares of the business's stock in a transaction that occurred 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 transaction, the director directly owned 21,458 shares of the company's stock, valued at $1,617,718.62. This represents a 44.91% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 11,650 shares of company stock worth $886,384 over the last ninety days. Corporate insiders own 0.22% of the company's stock.

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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