Zoetis Target of Unusually High Options Trading (NYSE:ZTS)

Key Points

• Zoetis saw unusually heavy options activity on Monday, with 8,095 call options traded — about 59% above the normal daily volume.
• The stock slipped on the day and remains well below its highs, trading at $75.73 versus a 52-week high of $160.48, after the company recently missed quarterly EPS and revenue estimates.
• Zoetis continues to pay a dividend and attract mixed Wall Street views, with a $0.53 quarterly payout and an average analyst rating of “Hold” amid multiple target-price cuts.

Zoetis Inc. (NYSE:ZTS - Get Free Report) saw unusually large options trading on Monday. Stock investors bought 8,095 call options on the company. This represents an increase of approximately 59% compared to the typical daily volume of 5,087 call options.

Zoetis Stock Performance

NYSE ZTS traded down $0.83 during trading hours on Monday, hitting $75.73. The company had a trading volume of 1,489,667 shares, compared to its average volume of 5,627,050. The company has a quick ratio of 1.91, a current ratio of 3.15 and a debt-to-equity ratio of 2.80. The firm has a market cap of $31.75 billion, a P/E ratio of 12.56, a price-to-earnings-growth ratio of 1.19 and a beta of 0.75. Zoetis has a fifty-two week low of $71.47 and a fifty-two week high of $160.48. The business has a fifty day simple moving average of $77.33 and a 200-day simple moving average of $105.89.

Zoetis (NYSE:ZTS - Get Free Report) last announced 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 analyst estimates of $2.30 billion. Zoetis had a net margin of 27.80% and a return on equity of 66.85%. The business's revenue was up 2.9% compared to the same quarter last year. During the same period last year, the firm posted $1.48 EPS. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. Equities analysts predict that Zoetis will post 6.87 EPS for the current 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 given a dividend of $0.53 per share. The ex-dividend date is Monday, July 20th. This represents a $2.12 annualized dividend and a dividend yield of 2.8%. Zoetis's payout ratio is currently 35.16%.

Insider Transactions at Zoetis

In related news, Director Paul Bisaro bought 2,000 shares of the stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average price of $75.88 per share, for a total transaction of $151,760.00. Following the completion of the purchase, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Michael B. Mccallister bought 3,000 shares of Zoetis stock in a transaction dated Monday, May 11th. The shares were purchased at an average cost of $77.76 per share, for a total transaction of $233,280.00. Following the completion of the transaction, the director owned 24,524 shares of the company's stock, valued at approximately $1,906,986.24. This represents a 13.94% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 11,650 shares of company stock valued at $886,384 over the last quarter. Company insiders own 0.22% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. J. Stern & Co. LLP increased its stake in Zoetis by 12,431.2% during the 4th quarter. J. Stern & Co. LLP now owns 24,069,492 shares of the company's stock valued at $3,028,423,000 after buying an additional 23,877,416 shares during the period. Norges Bank bought a new position in shares of Zoetis in the fourth quarter valued at approximately $734,425,000. Vanguard Group Inc. boosted its holdings in shares of 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 in the last quarter. Ruane Cunniff & Goldfarb L.P. acquired a new stake in Zoetis in the first quarter worth approximately $286,660,000. Finally, Nordea Investment Management AB lifted its position in Zoetis by 79.2% in the fourth quarter. Nordea Investment Management AB now owns 4,932,787 shares of the company's stock worth $622,222,000 after purchasing an additional 2,179,578 shares during the period. Institutional investors and hedge funds own 92.80% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. UBS Group lowered their target price on Zoetis from $130.00 to $99.00 and set a "neutral" rating for the company in a research note on Friday, May 8th. Stifel Nicolaus reduced their price target on Zoetis from $95.00 to $85.00 and set a "hold" rating for the company in a report on Friday, June 26th. Morgan Stanley restated an "overweight" rating and set a $115.00 price objective on shares of Zoetis in a research note on Friday, May 15th. Wall Street Zen downgraded Zoetis from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, HSBC cut 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. Eight investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $120.83.

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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