Morningstar Investment Management LLC Makes New $6.26 Million Investment in Zoetis Inc. $ZTS

Key Points

• Morningstar Investment Management opened a new position in Zoetis during the fourth quarter, buying 49,786 shares worth about $6.26 million.
• Insider buying picked up, with directors Michael B. Mccallister and Frank A. Damelio both purchasing shares in May; insiders bought 11,650 shares total over the last quarter.
• Zoetis reported mixed quarterly results, missing EPS and revenue estimates, while also declaring a quarterly dividend of $0.53 per share and maintaining a 2.6% annualized yield.

Morningstar Investment Management LLC acquired a new position in shares of Zoetis Inc. (NYSE:ZTS - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 49,786 shares of the company's stock, valued at approximately $6,264,000.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Global Wealth Strategies & Associates purchased a new stake in shares of Zoetis in the fourth quarter valued at about $25,000. Lodestone Wealth Management LLC purchased a new stake in shares of Zoetis in the fourth quarter valued at about $30,000. KERR FINANCIAL PLANNING Corp purchased a new stake in shares of Zoetis in the third quarter valued at about $31,000. Holos Integrated Wealth LLC purchased a new stake in shares of Zoetis in the fourth quarter valued at about $32,000. Finally, Elyxium Wealth LLC purchased a new stake in shares of Zoetis in the fourth quarter valued at about $32,000. 92.80% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Michael B. Mccallister purchased 3,000 shares of the company's stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average price of $77.76 per share, with a total value of $233,280.00. Following the completion of the transaction, the director 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. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Frank A. Damelio purchased 6,650 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were bought at an average cost 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. The trade was a 44.91% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders purchased 11,650 shares of company stock valued at $886,384. Insiders own 0.22% of the company's stock.

Zoetis Stock Down 0.1%

Shares of NYSE ZTS opened at $81.26 on Monday. Zoetis Inc. has a 12-month low of $72.38 and a 12-month high of $172.23. The company has a market capitalization of $34.06 billion, a PE ratio of 13.48, a price-to-earnings-growth ratio of 1.33 and a beta of 0.87. 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's 50-day moving average is $108.11 and its two-hundred day moving average is $118.47.

Zoetis (NYSE:ZTS - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported $1.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.60 by ($0.07). The business had revenue of $2.26 billion during the quarter, compared to analysts' expectations of $2.30 billion. Zoetis had a net margin of 27.80% and a return on equity of 66.85%. The firm's revenue for the quarter was up 2.9% on a year-over-year basis. During the same period last year, the company earned $1.48 EPS. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. Equities analysts anticipate that Zoetis Inc. will post 6.88 EPS for the current fiscal year.

Zoetis Announces Dividend

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

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on ZTS shares. Bank of America lifted their target price on shares of Zoetis from $135.00 to $140.00 and gave the company a "neutral" rating in a report on Friday, February 13th. Weiss Ratings downgraded shares of Zoetis from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 27th. UBS Group lowered their target price 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. William Blair reaffirmed an "outperform" rating on shares of Zoetis in a report on Monday, March 2nd. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $115.00 target price on shares of Zoetis in a report on Friday, May 15th. Seven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $133.92.

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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