Encore Global Management LP Makes New $1.66 Million Investment in Zoetis Inc. $ZTS

Key Points

• Encore Global Management LP bought 14,000 Zoetis shares worth approximately $1.66 million during the first quarter. Institutional investors and hedge funds collectively own 92.8% of the company.
• Analyst sentiment is mixed, with eight Buy, eight Hold and one Sell rating; the consensus rating is Hold, with an average price target of $118.33.
• Zoetis shares opened at $77.51, near their 52-week low, after the company modestly missed quarterly earnings and revenue estimates. The company declared a quarterly dividend of $0.53 per share, representing a 2.7% annualized yield.

Encore Global Management LP purchased a new stake in Zoetis Inc. (NYSE:ZTS - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 14,000 shares of the company's stock, valued at approximately $1,655,000.

Several other large investors have also modified their holdings of ZTS. J. Stern & Co. LLP lifted its stake in Zoetis by 12,431.2% in the 4th quarter. J. Stern & Co. LLP now owns 24,069,492 shares of the company's stock valued at $3,028,423,000 after buying an additional 23,877,416 shares in the last quarter. Norges Bank purchased a new position in Zoetis during the fourth quarter worth $734,425,000. Vanguard Group Inc. raised its holdings in shares of Zoetis by 12.9% in the fourth quarter. Vanguard Group Inc. now owns 47,780,974 shares of the company's stock worth $6,011,802,000 after acquiring an additional 5,474,210 shares during the last quarter. Ruane Cunniff & Goldfarb L.P. acquired a new position in shares of Zoetis in the first quarter worth $286,660,000. Finally, Van ECK Associates Corp lifted its position 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 acquiring an additional 1,740,113 shares in the last quarter. 92.80% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms recently commented on ZTS. Argus reaffirmed a "hold" rating on shares of Zoetis in a research note on Wednesday, May 27th. Barclays cut their target price 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. Weiss Ratings cut shares of Zoetis from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, June 12th. JPMorgan Chase & Co. lowered their price target on shares of Zoetis from $190.00 to $130.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Finally, HSBC lowered their price target on shares of Zoetis from $140.00 to $95.00 and set a "buy" rating for the company in a report on Monday, July 6th. Eight analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Zoetis presently has a consensus rating of "Hold" and an average price target of $118.33.

Insider Activity

In related news, Director Paul Bisaro bought 2,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average cost of $75.88 per share, for a total transaction of $151,760.00. Following the completion of the acquisition, the director owned 27,862 shares in the company, valued at $2,114,168.56. This trade represents a 7.73% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Frank A. Damelio bought 6,650 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was bought at an average price of $75.39 per share, with a total value of $501,343.50. Following the completion of the acquisition, the director owned 21,458 shares of the company's stock, valued at $1,617,718.62. This trade represents a 44.91% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 11,650 shares of company stock valued at $886,384 in the last 90 days. 0.22% of the stock is currently owned by insiders.

Zoetis Price Performance

ZTS stock opened at $77.51 on Wednesday. The stock has a market capitalization of $32.49 billion, a price-to-earnings ratio of 12.85, a price-to-earnings-growth ratio of 1.20 and a beta of 0.75. The company has a quick ratio of 1.91, a current ratio of 3.15 and a debt-to-equity ratio of 2.80. Zoetis Inc. has a 52-week low of $71.47 and a 52-week high of $160.48. The stock's fifty day simple moving average is $77.24 and its 200-day simple moving average is $103.37.

Zoetis (NYSE:ZTS - Get Free Report) last released its earnings results 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 business had revenue of $2.26 billion during the quarter, compared to analyst estimates of $2.30 billion. During the same quarter in the previous year, the company posted $1.48 earnings per share. The business's revenue for the quarter was up 2.9% compared to the same quarter last year. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. Equities research analysts expect that Zoetis Inc. will post 6.87 EPS for the current 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 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 dividend yield of 2.7%. Zoetis's dividend payout ratio is currently 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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