Zoetis (NYSE:ZTS) Shares Up 0.5% After Better-Than-Expected Earnings

Zoetis Inc. (NYSE:ZTS) shot up 0.5% on Friday following a stronger than expected earnings report. The stock traded as high as $171.69 and last traded at $168.00. 948,938 shares were traded during mid-day trading, a decline of 70% from the average session volume of 3,153,100 shares. The stock had previously closed at $167.23.

The company reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.34 by $0.04. The business had revenue of $2.19 billion for the quarter, compared to analyst estimates of $2.14 billion. Zoetis had a return on equity of 51.25% and a net margin of 27.43%. The company’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.31 earnings per share.

Zoetis Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 4th. Shareholders of record on Friday, April 19th will be issued a $0.432 dividend. This represents a $1.73 dividend on an annualized basis and a yield of 1.03%. The ex-dividend date of this dividend is Thursday, April 18th. Zoetis’s dividend payout ratio is 34.12%.

Analysts Set New Price Targets

Several equities research analysts have recently commented on ZTS shares. StockNews.com cut shares of Zoetis from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, February 20th. Barclays reduced their price target on shares of Zoetis from $260.00 to $230.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 23rd. Piper Sandler reiterated an “overweight” rating and issued a $195.00 price objective (down previously from $220.00) on shares of Zoetis in a research note on Tuesday, April 16th. The Goldman Sachs Group lifted their price target on Zoetis from $190.00 to $226.00 and gave the stock a “buy” rating in a report on Wednesday, January 17th. Finally, Stifel Nicolaus decreased their target price on Zoetis from $195.00 to $180.00 and set a “buy” rating for the company in a research report on Tuesday. Eight investment analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $216.13.

Insider Buying and Selling

In other news, EVP Roxanne Lagano sold 363 shares of the business’s stock in a transaction dated Monday, February 12th. The shares were sold at an average price of $197.74, for a total value of $71,779.62. Following the completion of the sale, the executive vice president now owns 20,417 shares of the company’s stock, valued at approximately $4,037,257.58. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last quarter, insiders sold 2,209 shares of company stock valued at $371,293. Insiders own 0.16% of the company’s stock.

Hedge Funds Weigh In On Zoetis

A number of large investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of Zoetis by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 40,334,966 shares of the company’s stock valued at $7,960,912,000 after buying an additional 536,477 shares during the period. Price T Rowe Associates Inc. MD raised its stake in Zoetis by 31.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,716,681 shares of the company’s stock worth $2,707,262,000 after acquiring an additional 3,244,074 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Zoetis by 2.5% in the third quarter. Wellington Management Group LLP now owns 12,344,692 shares of the company’s stock worth $2,147,730,000 after acquiring an additional 297,044 shares during the last quarter. Capital World Investors boosted its stake in shares of Zoetis by 0.6% in the 4th quarter. Capital World Investors now owns 9,064,158 shares of the company’s stock valued at $1,788,988,000 after purchasing an additional 57,798 shares in the last quarter. Finally, Northern Trust Corp lifted its stake in Zoetis by 3.3% in the 3rd quarter. Northern Trust Corp now owns 6,143,258 shares of the company’s stock valued at $1,068,804,000 after purchasing an additional 196,771 shares during the last quarter. 92.80% of the stock is currently owned by institutional investors and hedge funds.

Zoetis Stock Performance

The company has a market capitalization of $76.41 billion, a P/E ratio of 33.14, a PEG ratio of 2.48 and a beta of 0.86. The company has a fifty day moving average price of $169.48 and a two-hundred day moving average price of $178.89. The company has a debt-to-equity ratio of 1.32, a current ratio of 3.36 and a quick ratio of 2.00.

About Zoetis

Zoetis Inc engages in the discovery, development, manufacture, and commercialization of animal health medicines, vaccines, and diagnostic products and services in the United States and internationally. The company commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep and others; and companion animals comprising dogs, cats, and horses.