Zacks Investment Research Downgrades Zoetis (ZTS) to Sell

Zacks Investment Research cut shares of Zoetis (NYSE:ZTS) from a hold rating to a sell rating in a report issued on Saturday. Zacks Investment Research currently has $83.00 price objective on the stock.

According to Zacks, “Zoetis faces stiff competition from other animal health medicines and vaccines companies like Merck Animal Health (the animal health division of Merck), Elanco (the animal health division of Eli Lilly), Bayer Animal Health (the animal health division of Bayer) and Boehringer Ingelheim Animal Health (the animal health division of Boehringer Ingelheim). Disease outbreak among animals is a material cause of concern for Zoetis’ livestock products.In addition, companion animal health products are often directly prescribed and dispensed by veterinarians. The swine business is being impacted by competition for Fostera. These competitive pressures could adversely affect the company’s business and operating results. However, shares of the company have outperformed the industry in the last six months.”

Other equities research analysts also recently issued reports about the stock. Cantor Fitzgerald restated a buy rating and set a $75.00 price objective on shares of Zoetis in a research report on Tuesday, October 24th. Stifel Nicolaus restated a buy rating and set a $65.00 price objective on shares of Zoetis in a research report on Tuesday, October 24th. BidaskClub downgraded shares of Zoetis from a strong-buy rating to a buy rating in a research report on Wednesday, September 20th. Jefferies Group restated a buy rating on shares of Zoetis in a research report on Friday, November 10th. Finally, Cowen set a $80.00 price objective on shares of Zoetis and gave the stock a buy rating in a research report on Friday, November 17th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and fourteen have given a buy rating to the stock. The company presently has a consensus rating of Buy and an average price target of $73.00.

Zoetis (NYSE:ZTS) opened at $75.54 on Friday. Zoetis has a 1-year low of $52.00 and a 1-year high of $76.40. The company has a current ratio of 2.80, a quick ratio of 1.95 and a debt-to-equity ratio of 2.45. The company has a market capitalization of $36,810.00, a PE ratio of 39.76, a P/E/G ratio of 1.90 and a beta of 1.06.

Zoetis (NYSE:ZTS) last issued its quarterly earnings data on Thursday, November 2nd. The company reported $0.65 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.63 by $0.02. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.32 billion. Zoetis had a net margin of 18.29% and a return on equity of 62.39%. The business’s revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period last year, the business posted $0.52 earnings per share. analysts forecast that Zoetis will post 2.37 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 1st. Stockholders of record on Friday, January 19th will be given a $0.126 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.67%. This is an increase from Zoetis’s previous quarterly dividend of $0.11. The ex-dividend date of this dividend is Thursday, January 18th. Zoetis’s payout ratio is presently 22.11%.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ZTS. Northwestern Mutual Wealth Management Co. raised its position in Zoetis by 16.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,598 shares of the company’s stock valued at $100,000 after purchasing an additional 230 shares in the last quarter. Steward Partners Investment Advisory LLC acquired a new position in Zoetis during the third quarter valued at approximately $114,000. Harfst & Associates Inc. raised its position in Zoetis by 16.1% during the second quarter. Harfst & Associates Inc. now owns 1,878 shares of the company’s stock valued at $117,000 after purchasing an additional 260 shares in the last quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. raised its position in Zoetis by 251.9% during the third quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 1,900 shares of the company’s stock valued at $121,000 after purchasing an additional 1,360 shares in the last quarter. Finally, Shine Investment Advisory Services Inc. raised its position in Zoetis by 86.5% during the third quarter. Shine Investment Advisory Services Inc. now owns 2,242 shares of the company’s stock valued at $143,000 after purchasing an additional 1,040 shares in the last quarter. Institutional investors own 93.14% of the company’s stock.

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About Zoetis

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 business, commercializing products across eight core species: cattle, swine, poultry, sheep and fish (collectively, livestock) and dogs, cats and horses (collectively, companion animals), and within five product categories: anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals.

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