Zoetis (NYSE:ZTS) Shares Up 6% After Strong Earnings

Zoetis Inc. (NYSE:ZTS - Get Free Report)'s share price was up 6% on Thursday following a better than expected earnings announcement. The stock traded as high as $169.24 and last traded at $167.98. Approximately 1,649,248 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 3,134,072 shares. The stock had previously closed at $158.50.

The company reported $1.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.34 by $0.04. Zoetis had a return on equity of 51.25% and a net margin of 27.43%. The business had revenue of $2.19 billion during the quarter, compared to the consensus estimate of $2.14 billion. During the same period last year, the business posted $1.31 earnings per share. The business's revenue for the quarter was up 9.5% on a year-over-year basis.

Zoetis Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 4th. Stockholders of record on Friday, April 19th will be given a $0.432 dividend. This represents a $1.73 dividend on an annualized basis and a dividend yield of 1.03%. The ex-dividend date is Thursday, April 18th. Zoetis's dividend payout ratio is currently 34.12%.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on ZTS shares. StockNews.com downgraded Zoetis from a "strong-buy" rating to a "buy" rating in a research report on Tuesday, February 20th. The Goldman Sachs Group increased their target price on Zoetis from $190.00 to $226.00 and gave the stock a "buy" rating in a research report on Wednesday, January 17th. Stifel Nicolaus lowered their target price on Zoetis from $195.00 to $180.00 and set a "buy" rating on the stock in a research report on Tuesday. Barclays reduced their price objective on Zoetis from $260.00 to $230.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 23rd. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $195.00 target price (down previously from $220.00) on shares of Zoetis in a research report on Tuesday, April 16th. Eight equities research analysts have rated the stock with a buy rating, According to MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $216.13.

Insiders Place Their Bets

In related news, EVP Roxanne Lagano sold 923 shares of the business's stock in a transaction that occurred on Monday, March 18th. The shares were sold at an average price of $173.33, for a total transaction of $159,983.59. Following the completion of the transaction, the executive vice president now owns 15,723 shares in the company, valued at $2,725,267.59. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders have sold 2,209 shares of company stock worth $371,293 in the last quarter. 0.16% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zoetis

Hedge funds have recently added to or reduced their stakes in the company. Blue Bell Private Wealth Management LLC grew its position in shares of Zoetis by 222.5% in the 4th quarter. Blue Bell Private Wealth Management LLC now owns 129 shares of the company's stock valued at $25,000 after buying an additional 89 shares during the last quarter. Webster Bank N. A. lifted its holdings in shares of Zoetis by 89.1% during the first quarter. Webster Bank N. A. now owns 174 shares of the company's stock worth $29,000 after buying an additional 82 shares during the last quarter. Independence Bank of Kentucky lifted its stake in shares of Zoetis by 371.4% in the 4th quarter. Independence Bank of Kentucky now owns 165 shares of the company's stock valued at $33,000 after purchasing an additional 130 shares during the period. Private Wealth Management Group LLC acquired a new position in Zoetis during the fourth quarter valued at approximately $33,000. Finally, Ramirez Asset Management Inc. acquired a new stake in shares of Zoetis during the third quarter valued at about $35,000. 92.80% of the stock is currently owned by hedge funds and other institutional investors.

Zoetis Trading Up 5.5 %

The firm has a 50-day moving average price of $170.07 and a 200-day moving average price of $178.97. The company has a current ratio of 3.36, a quick ratio of 2.00 and a debt-to-equity ratio of 1.32. The stock has a market capitalization of $76.48 billion, a PE ratio of 33.13, a price-to-earnings-growth ratio of 2.50 and a beta of 0.86.

About Zoetis

Zoetis Inc engages in the discovery, development, manufacture, and commercialization of animal health medicines, vaccines, and diagnostic products and services in the United States and internationally. The company commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep and others; and companion animals comprising dogs, cats, and horses.