Zoetis Inc. (NYSE:ZTS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday.
According to Zacks, “Zoetis, one of the leading global animal health companies, is focused on both livestock and companion animals. The company’s companion animal business should continue to perform well. Zoetis' raised guidance for 2016, on the back of a strong performance in the first half of the year, is encouraging. Further, Zoetis’ efforts at boosting operational efficiency bode well. We are positive on Zoetis’ recent acquisition of Scandinavian Micro Biodevices, which should expand its offerings in the growing veterinary diagnostics segment of the animal health market. We expect to see more of such acquisitions/deals at the company as it continues to focus on the strategy of acquiring complementary businesses and products. However, performance of the livestock business is concerning. Moreover, headwinds remain in the form of disease outbreaks and stiff competition in the animal health space. Pipeline setbacks remain a concern as well.”
ZTS has been the topic of several other reports. Bank of America Corp. began coverage on shares of Zoetis in a report on Thursday, September 29th. They set a “buy” rating and a $60.00 target price on the stock. Citigroup Inc. raised their target price on shares of Zoetis from $50.00 to $53.00 and gave the stock a “neutral” rating in a report on Thursday, August 4th. Credit Suisse Group AG reaffirmed an “outperform” rating and set a $60.00 target price on shares of Zoetis in a report on Tuesday, August 23rd. Argus increased their price target on shares of Zoetis from $54.00 to $58.00 and gave the stock a “below average” rating in a research report on Friday, September 9th. Finally, Barclays PLC increased their price target on shares of Zoetis from $45.00 to $49.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 4th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating, eight have given a buy rating and two have given a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average price target of $55.27.
Zoetis (NYSE:ZTS) traded down 1.17% during trading on Thursday, reaching $51.57. The company’s stock had a trading volume of 1,005,558 shares. The company’s 50 day moving average price is $51.28 and its 200 day moving average price is $48.65. The company has a market cap of $25.53 billion, a P/E ratio of 40.16 and a beta of 1.01. Zoetis has a 52 week low of $38.26 and a 52 week high of $52.64.
Zoetis (NYSE:ZTS) last announced its earnings results on Wednesday, August 3rd. The company reported $0.49 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.44 by $0.05. Zoetis had a net margin of 13.15% and a return on equity of 77.58%. The company had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.17 billion. During the same period last year, the firm earned $0.43 earnings per share. The business’s revenue for the quarter was up 2.8% on a year-over-year basis. On average, equities analysts anticipate that Zoetis will post $1.91 earnings per share for the current fiscal year.
In other news, insider Heidi C. Chen sold 32,097 shares of Zoetis stock in a transaction on Thursday, September 1st. The shares were sold at an average price of $50.98, for a total transaction of $1,636,305.06. Following the transaction, the insider now owns 46,060 shares in the company, valued at $2,348,138.80. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Michael B. Mccallister purchased 2,000 shares of the business’s stock in a transaction dated Tuesday, September 6th. The shares were acquired at an average price of $51.34 per share, for a total transaction of $102,680.00. The disclosure for this purchase can be found here. Insiders own 0.05% of the company’s stock.
Institutional investors have recently modified their holdings of the company. Virginia Retirement System acquired a new position in shares of Zoetis during the first quarter worth approximately $340,000. Los Angeles Capital Management & Equity Research Inc. increased its position in shares of Zoetis by 198.1% in the first quarter. Los Angeles Capital Management & Equity Research Inc. now owns 44,720 shares of the company’s stock worth $1,982,000 after buying an additional 29,720 shares in the last quarter. Ngam Advisors L.P. increased its position in shares of Zoetis by 33.7% in the first quarter. Ngam Advisors L.P. now owns 106,578 shares of the company’s stock worth $4,724,000 after buying an additional 26,872 shares in the last quarter. Prudential Financial Inc. increased its position in shares of Zoetis by 1.3% in the first quarter. Prudential Financial Inc. now owns 562,712 shares of the company’s stock worth $24,946,000 after buying an additional 7,120 shares in the last quarter. Finally, Franklin Resources Inc. increased its position in shares of Zoetis by 18.4% in the first quarter. Franklin Resources Inc. now owns 76,090 shares of the company’s stock worth $3,374,000 after buying an additional 11,804 shares in the last quarter. Institutional investors own 93.12% of the company’s stock.
Zoetis Company Profile
Zoetis Inc is engaged in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The Company has a diversified business, marketing products across over eight core species: cattle, swine, poultry, sheep and fish (collectively, livestock), and dogs, cats and horses (collectively, companion animals), and within over five product categories: anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals.
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