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

Zoetis Inc. (NYSE:ZTS) was the target of some unusual options trading on Monday. Investors acquired 8,095 call options on the stock. This represents an increase of approximately 59% compared to the average daily volume of 5,087 call options.

Zoetis Stock Down 1.1%

NYSE:ZTS traded down $0.83 during trading hours on Monday, hitting $75.73. 1,489,667 shares of the stock traded hands, compared to its average volume of 5,627,050. The firm has a 50 day moving average price of $77.33 and a 200 day moving average price of $105.89. The company has a current ratio of 3.15, a quick ratio of 1.91 and a debt-to-equity ratio of 2.80. Zoetis has a fifty-two week low of $71.47 and a fifty-two week high of $160.48. The firm has a market cap of $31.75 billion, a price-to-earnings ratio of 12.56, a PEG ratio of 1.19 and a beta of 0.75.

Zoetis (NYSE:ZTS) last released its earnings results on Thursday, May 7th. The company reported $1.53 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.60 by ($0.07). The business had revenue of $2.26 billion during the quarter, compared to analysts’ expectations of $2.30 billion. Zoetis had a net margin of 27.80% and a return on equity of 66.85%. Zoetis’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.48 EPS. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS. Equities research analysts anticipate that Zoetis will post 6.87 earnings per share for the current year.

Zoetis Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, July 20th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Monday, July 20th. This represents a $2.12 dividend on an annualized basis and a yield of 2.8%. Zoetis’s payout ratio is presently 35.16%.

Insider Activity

In other news, Director Michael B. Mccallister bought 3,000 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were purchased at an average cost of $77.76 per share, with a total value of $233,280.00. Following the completion of the acquisition, the director directly owned 24,524 shares in the company, valued at approximately $1,906,986.24. The trade was a 13.94% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Frank A. Damelio purchased 6,650 shares of the company’s stock in a transaction on Wednesday, May 13th. The stock was acquired at an average price of $75.39 per share, for a total transaction of $501,343.50. Following the completion of the transaction, the director owned 21,458 shares of the company’s stock, valued at $1,617,718.62. This represents a 44.91% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 11,650 shares of company stock worth $886,384 over the last 90 days. 0.22% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zoetis

A number of hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC raised its stake in shares of Zoetis by 180.4% in the 4th quarter. Brighton Jones LLC now owns 4,629 shares of the company’s stock valued at $754,000 after acquiring an additional 2,978 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of Zoetis by 6.2% during the 1st quarter. Empowered Funds LLC now owns 11,293 shares of the company’s stock worth $1,859,000 after buying an additional 657 shares during the period. Intech Investment Management LLC grew its position in shares of Zoetis by 17.2% in the first quarter. Intech Investment Management LLC now owns 8,347 shares of the company’s stock valued at $1,374,000 after purchasing an additional 1,224 shares during the last quarter. Sivia Capital Partners LLC grew its holdings in Zoetis by 73.8% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,348 shares of the company’s stock valued at $522,000 after buying an additional 1,422 shares during the last quarter. Finally, Glenview Trust co grew its stake in shares of Zoetis by 11.8% in the second quarter. Glenview Trust co now owns 4,780 shares of the company’s stock worth $745,000 after acquiring an additional 506 shares during the last quarter. Institutional investors and hedge funds own 92.80% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on ZTS. HSBC reduced their price objective on shares of Zoetis from $140.00 to $95.00 and set a “buy” rating for the company in a research report on Monday, July 6th. Morgan Stanley reissued an “overweight” rating and set a $115.00 target price on shares of Zoetis in a research note on Friday, May 15th. Barclays reduced their target price on shares of Zoetis from $136.00 to $85.00 and set an “equal weight” rating for the company in a report on Wednesday, July 1st. TD Cowen decreased their price target on shares of Zoetis from $150.00 to $104.00 and set a “buy” rating on the stock in a research report on Tuesday, June 30th. Finally, Wall Street Zen cut Zoetis from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Eight equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target 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.