Zoetis Inc. (NYSE:ZTS) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Zoetis currently carries a consensus analyst rating of "Hold" from 17 brokerages, with eight buy ratings, eight hold ratings, and one sell rating. The average 12-month price target is about $120.83.
• The company recently reported Q1 earnings that missed expectations, posting $1.53 EPS versus the $1.60 estimate and revenue of $2.26 billion versus $2.30 billion expected. Zoetis also guided FY2026 EPS at $6.85 to $7.00.
• Zoetis announced a quarterly dividend of $0.53 per share, payable September 1, with a 2.8% annualized yield. The stock has also seen insider buying, while ongoing securities class-action lawsuits remain an overhang.

Shares of Zoetis Inc. (NYSE:ZTS - Get Free Report) have earned an average rating of "Hold" from the seventeen research firms that are currently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and eight have assigned a buy rating to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $120.8333.

Several equities analysts have issued reports on the company. HSBC dropped their target price on Zoetis from $140.00 to $95.00 and set a "buy" rating on the stock in a research report on Monday, July 6th. Morgan Stanley restated an "overweight" rating and issued a $115.00 price target on shares of Zoetis in a research note on Friday, May 15th. Argus reaffirmed a "hold" rating on shares of Zoetis in a report on Wednesday, May 27th. TD Cowen cut their price objective on Zoetis from $150.00 to $104.00 and set a "buy" rating for the company in a research report on Tuesday, June 30th. Finally, JPMorgan Chase & Co. reduced their target price on Zoetis from $190.00 to $130.00 and set an "overweight" rating for the company in a report on Friday, May 8th.

Key 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

Insider Buying and Selling

In related news, Director Paul Bisaro acquired 2,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average price of $75.88 per share, with a total value of $151,760.00. Following the completion of the acquisition, the director owned 27,862 shares in the company, valued at approximately $2,114,168.56. This represents a 7.73% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Michael B. Mccallister purchased 3,000 shares of Zoetis stock in a transaction dated Monday, May 11th. The shares were bought 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 in the company, valued at approximately $1,906,986.24. This trade represents a 13.94% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have purchased 11,650 shares of company stock valued at $886,384. Corporate insiders own 0.22% of the company's stock.

Hedge Funds Weigh In On Zoetis

A number of institutional investors have recently modified their holdings of ZTS. Vanguard Group Inc. boosted its holdings in Zoetis by 12.9% in the fourth quarter. Vanguard Group Inc. now owns 47,780,974 shares of the company's stock valued at $6,011,802,000 after acquiring an additional 5,474,210 shares during the last quarter. J. Stern & Co. LLP increased its stake in Zoetis by 12,431.2% during the fourth quarter. J. Stern & Co. LLP now owns 24,069,492 shares of the company's stock worth $3,028,423,000 after acquiring an additional 23,877,416 shares during the last quarter. State Street Corp raised its holdings in shares of Zoetis by 0.8% in the 4th quarter. State Street Corp now owns 19,796,891 shares of the company's stock worth $2,490,845,000 after purchasing an additional 149,382 shares during the period. Geode Capital Management LLC raised its holdings in shares of Zoetis by 1.7% in the 4th quarter. Geode Capital Management LLC now owns 11,327,679 shares of the company's stock worth $1,420,294,000 after purchasing an additional 189,235 shares during the period. Finally, Norges Bank acquired a new position in shares of Zoetis in the 4th quarter valued at about $734,425,000. Institutional investors and hedge funds own 92.80% of the company's stock.

Zoetis Stock Down 0.6%

Shares of NYSE:ZTS opened at $76.44 on Friday. The company has a market cap of $32.05 billion, a price-to-earnings ratio of 12.68, a PEG ratio of 1.20 and a beta of 0.75. The firm's 50-day simple moving average is $77.33 and its 200-day simple moving average is $106.03. 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 has a fifty-two week low of $71.47 and a fifty-two week high of $160.48.

Zoetis (NYSE:ZTS - Get Free Report) last posted 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 firm had revenue of $2.26 billion for the quarter, compared to analysts' expectations of $2.30 billion. Zoetis had a return on equity of 66.85% and a net margin of 27.80%.The company's revenue for the quarter was up 2.9% on a year-over-year basis. During the same period in the prior year, the company earned $1.48 earnings per share. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. As a group, equities research analysts predict that Zoetis will post 6.87 earnings per share for the current year.

Zoetis Announces Dividend

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

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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