Zoetis (NYSE:ZTS) Stock Price Up 6% on Earnings Beat

Zoetis Inc. (NYSE:ZTS)’s share price traded up 6% on Thursday following a stronger than expected earnings report. The stock traded as high as $169.24 and last traded at $167.98. 1,649,248 shares traded hands during trading, a decline of 47% from the average session volume of 3,134,072 shares. The stock had previously closed at $158.50.

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

Zoetis Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 4th. Stockholders of record on Friday, April 19th will be paid a dividend of $0.432 per share. The ex-dividend date of this dividend is Thursday, April 18th. This represents a $1.73 dividend on an annualized basis and a dividend yield of 1.02%. Zoetis’s dividend payout ratio (DPR) is 34.12%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on ZTS shares. StockNews.com downgraded Zoetis from a “strong-buy” rating to a “buy” rating in a report on Tuesday, February 20th. The Goldman Sachs Group raised their price objective on shares of Zoetis from $190.00 to $226.00 and gave the company a “buy” rating in a research note on Wednesday, January 17th. Barclays lowered their target price 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 set a $195.00 price target (down from $220.00) on shares of Zoetis in a research report on Tuesday, April 16th. Finally, Stifel Nicolaus decreased their price target on Zoetis from $195.00 to $180.00 and set a “buy” rating on the stock in a research note on Tuesday. Eight equities research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, Zoetis currently has a consensus rating of “Buy” and a consensus target price of $216.13.

Insider Activity at Zoetis

In other news, EVP Roxanne Lagano sold 363 shares of the company’s stock in a transaction dated Monday, February 12th. The shares were sold at an average price of $197.74, for a total transaction of $71,779.62. Following the completion of the transaction, 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 filing with the SEC, which is available at this hyperlink. Over the last ninety days, insiders sold 2,209 shares of company stock worth $371,293. 0.16% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zoetis

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of Zoetis in the 4th quarter valued at $980,646,000. Price T Rowe Associates Inc. MD increased its holdings in Zoetis by 31.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,716,681 shares of the company’s stock valued at $2,707,262,000 after purchasing an additional 3,244,074 shares in the last quarter. Public Employees Retirement Association of Colorado purchased a new position in Zoetis in the fourth quarter valued at about $242,757,000. Vaughan Nelson Investment Management L.P. acquired a new position in shares of Zoetis during the third quarter worth about $176,219,000. Finally, CIBC Private Wealth Group LLC boosted its position in shares of Zoetis by 122.6% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,448,665 shares of the company’s stock worth $285,923,000 after buying an additional 797,884 shares during the period. 92.80% of the stock is currently owned by institutional investors and hedge funds.

Zoetis Trading Up 6.4 %

The firm has a market cap of $77.11 billion, a price-to-earnings ratio of 33.13, a price-to-earnings-growth ratio of 2.50 and a beta of 0.86. The company has a quick ratio of 2.00, a current ratio of 3.36 and a debt-to-equity ratio of 1.32. The business has a 50 day moving average price of $170.07 and a 200-day moving average price of $178.97.

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.