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Zoetis Inc. (NYSE:ZTS) Given Average Recommendation of "Hold" by Analysts

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Key Points

  • Zoetis has an average analyst recommendation of “Hold”, with 15 firms covering the stock: one sell, eight hold, and six buy ratings. The average 1-year price target is about $133.92.
  • Several analysts recently adjusted their views, including UBS cutting its target to $99 and JPMorgan lowering its target to $130, while Morgan Stanley and Bank of America maintained more constructive stances. The mixed actions reflect a cautious outlook on the stock.
  • Zoetis recently missed first-quarter earnings and revenue expectations and cut its full-year guidance, which has also sparked class action lawsuit activity and created a legal overhang for investors.
  • Five stocks we like better than Zoetis.

Shares of Zoetis Inc. (NYSE:ZTS - Get Free Report) have earned an average rating of "Hold" from the fifteen research firms that are currently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation and six have given a buy recommendation to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $133.9167.

Several equities research analysts recently weighed in on ZTS shares. UBS Group dropped their price target on Zoetis from $130.00 to $99.00 and set a "neutral" rating on the stock in a research report on Friday, May 8th. Bank of America raised their price objective on Zoetis from $135.00 to $140.00 and gave the company a "neutral" rating in a research report on Friday, February 13th. Morgan Stanley restated an "overweight" rating and set a $115.00 target price on shares of Zoetis in a report on Friday, May 15th. JPMorgan Chase & Co. reduced their target price on shares of Zoetis from $190.00 to $130.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Finally, Weiss Ratings lowered shares of Zoetis from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 27th.

View Our Latest Stock Analysis on Zoetis

Trending Headlines about Zoetis

Here are the key news stories impacting Zoetis this week:

Zoetis Price Performance

ZTS stock opened at $78.36 on Friday. Zoetis has a 1 year low of $72.38 and a 1 year high of $172.23. The company has a market cap of $32.85 billion, a P/E ratio of 12.99, a PEG ratio of 1.30 and a beta of 0.87. The firm has a 50-day moving average of $105.08 and a 200 day moving average of $117.31. The company has a debt-to-equity ratio of 2.80, a current ratio of 3.15 and a quick ratio of 1.91.

Zoetis (NYSE:ZTS - Get Free Report) last posted its quarterly earnings data 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 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 period in the previous year, the firm posted $1.48 earnings per share. The business's revenue was up 2.9% compared to the same quarter last year. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. On average, sell-side analysts forecast that Zoetis will post 6.88 EPS for the current year.

Zoetis Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders 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 (DPR) is currently 35.16%.

Insider Activity

In related news, Director Frank A. Damelio purchased 6,650 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The shares were bought at an average price of $75.39 per share, for a total transaction of $501,343.50. Following the purchase, the director directly owned 21,458 shares of the company's stock, valued at approximately $1,617,718.62. This represents a 44.91% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Paul Bisaro acquired 2,000 shares of Zoetis stock in a transaction that occurred on Wednesday, May 13th. The shares were bought at an average cost of $75.88 per share, with a total value of $151,760.00. Following the transaction, the director owned 27,862 shares in the company, valued at $2,114,168.56. This represents a 7.73% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 11,650 shares of company stock worth $886,384. Insiders own 0.22% of the company's stock.

Institutional Investors Weigh In On Zoetis

A number of institutional investors have recently modified their holdings of the stock. Allen Capital Group LLC increased its holdings in shares of Zoetis by 5.0% during the first quarter. Allen Capital Group LLC now owns 40,103 shares of the company's stock valued at $4,741,000 after acquiring an additional 1,926 shares in the last quarter. Glenmede Trust Co. NA raised its position in shares of Zoetis by 36.5% in the 1st quarter. Glenmede Trust Co. NA now owns 231,874 shares of the company's stock worth $27,410,000 after purchasing an additional 62,034 shares during the last quarter. Axiom Investment Management LLC bought a new position in Zoetis in the 1st quarter worth about $99,000. Summitry LLC bought a new position in Zoetis in the 1st quarter worth about $21,255,000. Finally, Segall Bryant & Hamill LLC purchased a new stake in Zoetis during the 1st quarter valued at about $10,036,000. 92.80% of the stock is owned by hedge funds and other institutional investors.

About Zoetis

(Get Free Report)

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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Analyst Recommendations for Zoetis (NYSE:ZTS)

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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