Zoetis Sees Unusually High Options Volume (NYSE:ZTS)

Key Points

• Zoetis saw unusually heavy options activity on Thursday, with traders buying 6,728 call options — about 63% above its typical daily volume.
• The stock rose 3.5% to $80.29, though it still trades well below its 50-day and 200-day moving averages, reflecting continued weakness versus earlier levels.
• Sentiment remains mixed: Zoetis recently missed quarterly earnings and revenue expectations, while new class-action lawsuit headlines and several analyst target cuts have added pressure, even as the company continues paying a quarterly dividend of $0.53 per share.

Zoetis Inc. (NYSE:ZTS - Get Free Report) saw unusually large options trading on Thursday. Traders bought 6,728 call options on the company. This is an increase of 63% compared to the typical daily volume of 4,127 call options.

Zoetis Trading Up 3.5%

NYSE:ZTS traded up $2.70 during midday trading on Thursday, hitting $80.29. 2,885,419 shares of the company traded hands, compared to its average volume of 5,306,981. The firm's fifty day moving average is $101.99 and its 200-day moving average is $116.09. Zoetis has a 12-month low of $72.38 and a 12-month high of $171.52. The firm has a market capitalization of $33.66 billion, a P/E ratio of 13.31, a P/E/G ratio of 1.25 and a beta of 0.75. The company has a current ratio of 3.15, a quick ratio of 1.91 and a debt-to-equity ratio of 2.80.

Zoetis (NYSE:ZTS - Get Free Report) last released its quarterly earnings results 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 company had revenue of $2.26 billion for the quarter, compared to analysts' expectations of $2.30 billion. During the same quarter in the previous year, the company posted $1.48 EPS. The business's quarterly revenue was up 2.9% on a year-over-year basis. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. On average, sell-side analysts predict that Zoetis will post 6.89 EPS for the current 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 issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 2.6%. The ex-dividend date is Monday, July 20th. Zoetis's dividend payout ratio is presently 35.16%.

Key Headlines Impacting Zoetis

Here are the key news stories impacting Zoetis this week:

• Negative Sentiment: Multiple law firms announced or promoted class-action lawsuits against Zoetis, alleging false and/or misleading statements to investors and setting a July 27, 2026 lead-plaintiff deadline. These headlines increase uncertainty and can weigh on the stock as investors assess potential legal costs and reputational damage. Article: Shareholder Alert Bernstein Liebhard LLP Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Zoetis Inc. (ZTS)
• Negative Sentiment: Additional investor-rights firms continued to publicize the lawsuit, suggesting the issue is broadening and keeping legal risk in focus for shareholders. Article: INVESTOR NOTICE: Robbins Geller Rudman & Dowd LLP Announces that Zoetis Inc. (ZTS) Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
• Negative Sentiment: Commentary from Jim Cramer saying he feels “something not well” at Zoetis and preferring a rival added to sentiment headwinds, reinforcing the cautious tone around the stock. Article: Jim Cramer Says He Feels 'Something Not Well' At Zoetis, Names A Rival As His Pick
• Neutral Sentiment: Zoetis released its 2025 Sustainability Report, highlighting progress under its Driven to Care strategy and its next-phase goals. The update is positive for long-term ESG positioning, but it is unlikely to offset the near-term litigation-driven pressure on the shares. Article: Zoetis Releases 2025 Sustainability Report: Advancing Sustainability in Animal Health for a Better Future

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the company. UBS Group decreased their price objective on Zoetis from $130.00 to $99.00 and set a "neutral" rating on the stock in a report on Friday, May 8th. Wall Street Zen downgraded Zoetis from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. JPMorgan Chase & Co. lowered their target price on Zoetis from $190.00 to $130.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Bank of America increased their target price on Zoetis from $135.00 to $140.00 and gave the company a "neutral" rating in a research report on Friday, February 13th. Finally, William Blair reiterated an "outperform" rating on shares of Zoetis in a research report on Monday, March 2nd. Six equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Zoetis presently has a consensus rating of "Hold" and a consensus target price of $133.92.

Insider Buying and Selling

In other Zoetis news, Director Paul Bisaro purchased 2,000 shares of the 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 acquisition, the director owned 27,862 shares in the company, valued at approximately $2,114,168.56. This trade represents a 7.73% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Michael B. Mccallister purchased 3,000 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was acquired at an average cost of $77.76 per share, for a total transaction of $233,280.00. Following the completion of the acquisition, the director owned 24,524 shares in the company, valued at $1,906,986.24. This represents a 13.94% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have acquired 11,650 shares of company stock valued at $886,384. Corporate insiders own 0.22% of the company's stock.

Institutional Trading of Zoetis

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Global Wealth Strategies & Associates purchased a new stake in Zoetis in the fourth quarter worth $25,000. Prosperity Bancshares Inc purchased a new stake in Zoetis in the fourth quarter worth $25,000. Cassaday & Co Wealth Management LLC purchased a new stake in Zoetis in the first quarter worth $28,000. Lodestone Wealth Management LLC purchased a new stake in Zoetis in the fourth quarter worth $30,000. Finally, Root Financial Partners LLC increased its stake in Zoetis by 66.5% in the first quarter. Root Financial Partners LLC now owns 258 shares of the company's stock worth $30,000 after purchasing an additional 103 shares during the period. Hedge funds and other institutional investors own 92.80% of the company's stock.

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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