Hsbc Holdings PLC Raises Stock Holdings in Zoetis Inc. $ZTS

Key Points

• HSBC Holdings PLC increased its Zoetis stake by 55.8% in Q1, ending with 2,063,170 shares worth about $243.7 million. That makes HSBC one of the larger institutional holders, with institutional investors owning 92.8% of Zoetis overall.
• Zoetis insiders have also been buying shares: directors Frank A. Damelio and Michael B. McCallister purchased stock in May, and insiders bought 11,650 shares worth $886,384 over the past 90 days. These purchases suggest some management confidence despite recent volatility.
• Zoetis recently reported mixed earnings, missing both EPS and revenue expectations for the quarter, while analysts have cut price targets and now have a consensus Hold rating. The stock also carries an ongoing litigation overhang from securities class-action alerts.

Hsbc Holdings PLC increased its holdings in shares of Zoetis Inc. (NYSE:ZTS - Free Report) by 55.8% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 2,063,170 shares of the company's stock after acquiring an additional 739,060 shares during the quarter. Hsbc Holdings PLC owned approximately 0.49% of Zoetis worth $243,720,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also bought and sold shares of ZTS. Louisiana State Employees Retirement System purchased a new position in shares of Zoetis in the 1st quarter worth about $2,542,000. Nordea Investment Management AB grew its position in Zoetis by 79.2% during 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 during the period. Deutsche Bank AG increased its holdings in Zoetis by 19.1% during the fourth quarter. Deutsche Bank AG now owns 5,558,183 shares of the company's stock worth $699,331,000 after buying an additional 891,921 shares during the last quarter. Seilern Investment Management Ltd increased its holdings in Zoetis by 361.2% during the fourth quarter. Seilern Investment Management Ltd now owns 333,465 shares of the company's stock worth $41,957,000 after buying an additional 261,155 shares during the last quarter. Finally, Assenagon Asset Management S.A. raised its position in Zoetis by 134.4% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,631,619 shares of the company's stock worth $205,290,000 after acquiring an additional 935,432 shares during the period. Hedge funds and other institutional investors own 92.80% of the company's stock.

Insider Activity at Zoetis

In other Zoetis news, Director Frank A. Damelio acquired 6,650 shares of Zoetis stock in a transaction that occurred on Wednesday, May 13th. The stock was acquired at an average cost of $75.39 per share, for a total transaction of $501,343.50. Following the purchase, the director owned 21,458 shares of the company's stock, valued at approximately $1,617,718.62. This represents a 44.91% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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. In the last ninety days, insiders acquired 11,650 shares of company stock worth $886,384. Corporate insiders own 0.22% of the company's stock.

More Zoetis News

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

Zoetis Price Performance

NYSE ZTS opened at $76.44 on Friday. The company has a market cap of $32.05 billion, a PE ratio of 12.68, a price-to-earnings-growth ratio of 1.19 and a beta of 0.75. Zoetis Inc. has a 52 week low of $71.47 and a 52 week high of $160.48. The company has a quick ratio of 1.91, a current ratio of 3.15 and a debt-to-equity ratio of 2.80. The firm's 50-day simple moving average is $77.33 and its two-hundred day simple moving average is $106.03.

Zoetis (NYSE:ZTS - Get Free Report) last posted 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). Zoetis had a return on equity of 66.85% and a net margin of 27.80%.The business had revenue of $2.26 billion during the quarter, compared to analysts' expectations of $2.30 billion. During the same quarter in the previous year, the business earned $1.48 EPS. Zoetis'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. Research analysts predict that Zoetis Inc. will post 6.87 earnings per share for the current year.

Zoetis Announces Dividend

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

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Stifel Nicolaus dropped their target price on shares of Zoetis from $95.00 to $85.00 and set a "hold" rating on the stock in a research note on Friday, June 26th. Weiss Ratings lowered shares of Zoetis from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, June 12th. UBS Group lowered their price target on shares of Zoetis from $130.00 to $99.00 and set a "neutral" rating on the stock in a report on Friday, May 8th. Barclays dropped their price objective on Zoetis from $136.00 to $85.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 1st. Finally, Citigroup reduced their price objective on Zoetis from $145.00 to $112.00 and set a "buy" rating for the company in a report on Monday, May 18th. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $120.83.

Zoetis Company 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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