Zoetis (NYSE:ZTS) Stock Price Down 6.2% on Analyst Downgrade

Key Points

• Zoetis shares fell 6.2% to about $72.51 after JPMorgan cut its price target from $130 to $115, despite maintaining an overweight rating. The stock traded on volume 35% above its average.
• Recent analyst sentiment has weakened: the consensus rating is now “Hold”, with an average price target of $115.92, while several firms have lowered their targets.
• Zoetis beat second-quarter earnings expectations but slightly missed revenue forecasts and cut its 2026 guidance to $6.15–$6.25 in adjusted EPS and $9.1–$9.3 billion in revenue, citing weaker companion-animal demand, pricing sensitivity and increased competition.

Zoetis Inc. (NYSE:ZTS - Get Free Report)'s stock price fell 6.2% on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $130.00 to $115.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Zoetis traded as low as $72.34 and last traded at $72.5090. 7,805,101 shares were traded during trading, an increase of 35% from the average session volume of 5,760,366 shares. The stock had previously closed at $77.27.

Other equities analysts have also recently issued research reports about the company. Morgan Stanley set a $85.00 target price on Zoetis in a research note on Friday. UBS Group decreased their price target on shares of Zoetis from $99.00 to $85.00 and set a "neutral" rating for the company in a report on Monday, July 27th. HSBC lowered their price objective on shares of Zoetis from $140.00 to $95.00 and set a "buy" rating on the stock in a research report on Monday, July 6th. Citigroup dropped their price objective on shares of Zoetis from $145.00 to $112.00 and set a "buy" rating on the stock in a research note on Monday, May 18th. Finally, Weiss Ratings downgraded shares of Zoetis from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, June 12th. Seven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $115.92.

Insider Buying and Selling

In other news, Director Paul Bisaro acquired 2,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average price of $75.88 per share, for a total transaction of $151,760.00. Following the completion of the acquisition, the director owned 27,862 shares of the company's stock, valued at approximately $2,114,168.56. This represents a 7.73% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Frank A. Damelio acquired 6,650 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average cost of $75.39 per share, for a total transaction of $501,343.50. Following the transaction, 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 position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have bought 11,650 shares of company stock worth $886,384. Insiders own 0.22% of the company's stock.

Trending Headlines about Zoetis

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Q2 earnings beat estimates: Zoetis reported adjusted earnings of $1.87 per share, ahead of the approximately $1.85 consensus and up from $1.76 a year earlier. However, revenue of $2.47 billion slightly missed expectations and was essentially flat year over year. Zoetis Surpasses Q2 Earnings Estimates
• Neutral Sentiment: Finance leadership change: Zoetis appointed James “Jay” Saccaro as executive vice president and chief financial officer, with reports also describing an expanded chief operating officer role. The change could support execution, but it is unlikely to offset the near-term demand concerns. Zoetis Appoints Jay Saccaro
• Negative Sentiment: 2026 guidance was cut materially: Zoetis now expects adjusted earnings per share of $6.15-$6.25, below the roughly $6.87 analyst consensus, and revenue of $9.1-$9.3 billion versus estimates near $9.8 billion. The reduced forecast signals that management expects softer growth and lower profitability for the year. Zoetis Q2 Earnings Beat, Revenue Miss, 2026 View Cut
• Negative Sentiment: Companion Animal weakness deepened: Management cited lower veterinary traffic, greater customer price sensitivity and increased competition. Zoetis plans additional promotions to defend market share, which may pressure pricing and margins. ZTS Q2 Earnings Call Flags Deeper Companion Animal Pressure

Institutional Investors Weigh In On Zoetis

Large investors have recently bought and sold shares of the business. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Zoetis during the 2nd quarter worth about $25,000. Dunhill Financial LLC raised its stake in shares of Zoetis by 519.3% in the 2nd quarter. Dunhill Financial LLC now owns 353 shares of the company's stock valued at $25,000 after acquiring an additional 296 shares in the last quarter. Prosperity Bancshares Inc acquired a new stake in Zoetis in the 4th quarter worth approximately $25,000. Cassaday & Co Wealth Management LLC bought a new stake in Zoetis during the first quarter worth approximately $28,000. Finally, Root Financial Partners LLC grew its holdings in Zoetis by 66.5% during the first quarter. Root Financial Partners LLC now owns 258 shares of the company's stock valued at $30,000 after purchasing an additional 103 shares during the last quarter. 92.80% of the stock is currently owned by institutional investors.

Zoetis Stock Performance

The company has a market cap of $30.43 billion, a price-to-earnings ratio of 12.00, a P/E/G ratio of 1.16 and a beta of 0.74. 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 has a fifty day simple moving average of $76.76 and a 200 day simple moving average of $100.95.

Zoetis (NYSE:ZTS - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.85 by $0.02. Zoetis had a net margin of 27.80% and a return on equity of 66.85%. The business had revenue of $2.47 billion during the quarter, compared to analysts' expectations of $2.50 billion. During the same period in the previous year, the company earned $1.76 earnings per share. Zoetis's revenue for the quarter was down .2% on a year-over-year basis. Zoetis has set its FY 2026 guidance at 6.150-6.250 EPS. On average, sell-side analysts expect that Zoetis Inc. will post 6.87 earnings per share for the current fiscal year.

Zoetis Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, July 20th will be paid a $0.53 dividend. The ex-dividend date is Monday, July 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.9%. Zoetis's payout ratio is presently 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.

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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