SFE Investment Counsel Reduces Stake in Zoetis Inc. (NYSE:ZTS)

SFE Investment Counsel has recently reported a reduction in its holdings of Zoetis Inc. (NYSE:ZTS) by 6.9% during the fourth quarter. This information was revealed in their most recent 13F filing with the Securities and Exchange Commission (SEC). Post sale, the fund holds 25,556 shares of Zoetis after selling off 1,905 shares during the quarter.

At the end of the latest fiscal quarter, SFE Investment Counsel's investment in Zoetis was valued at approximately $4,164,000.

Other Hedge Fund Activities

Several other hedge funds have also adjusted their positions in Zoetis recently. AMF Tjanstepension AB increased its stake by 23.4% in the third quarter and now owns 105,376 shares, valued at $20,594,000, after acquiring 20,001 shares. Exchange Traded Concepts LLC significantly raised its stake by 4,582.9%, buying an additional 1,604 shares for a total of 1,639 shares valued at $320,000. CX Institutional increased its ownership by 6.3%, resulting in 8,142 shares worth $1,591,000 after purchasing 482 additional shares.

Creative Planning also boosted its holdings by 8.6%, leading to a total of 90,401 shares valued at $17,663,000 after adding 7,170 shares during the quarter. Moreover, 626 Financial LLC initiated a new investment in Zoetis, estimated at roughly $212,000.

Overall, institutional investors now own about 92.80% of Zoetis's stock.

Zoetis Stock Performance

On Thursday, Zoetis shares opened at $173.99. The stock exhibits a 50-day simple moving average of $169.08 and a 200-day simple moving average of $179.08. With a market capitalization of $78.50 billion, the company has a price-to-earnings (PE) ratio of 32.70, a price/earnings to growth (P/E/G) ratio of 2.77, and a beta of 0.90. In the past year, Zoetis's stock has fluctuated between a low of $144.80 and a high of $200.53. The firm maintains a debt-to-equity ratio of 1.26, a current ratio of 3.69, and a quick ratio of 2.27.

Earnings Report

Zoetis's latest earnings results were announced on February 13th. The company reported an earnings per share (EPS) of $1.40 for the quarter, surpassing the expected EPS of $1.37 by $0.03. Zoetis recorded a net margin of 26.55% and a return on equity of 51.98%. Analysts predict that the company will achieve an average EPS of 5.9 for the current fiscal year.

Dividend Announcement

In addition, Zoetis has disclosed a quarterly dividend of $0.50 per share, payable on June 3rd to shareholders on record as of April 21st. The ex-dividend date is also April 21st. This dividend translates to an annualized payment of $2.00 and provides a yield of 1.15%. The dividend payout ratio for Zoetis stands at 37.59%.

Insider Transactions

In recent insider transactions, Roxanne Lagano, the Executive Vice President, sold 326 shares of Zoetis on February 11th at an average price of $171.18, totaling $55,804.68. Following this sale, she holds 16,107 shares of the company, valued at approximately $2,757,196.26, reflecting a 1.98% decrease in her ownership. This transaction has been disclosed in a legal filing with the SEC.

Analysts' Price Targets

Market analysts have recently updated their ratings for Zoetis. Piper Sandler reduced its price target from $210.00 to $200.00 while maintaining an "overweight" rating. Similarly, Morgan Stanley lowered its price target from $248.00 to $243.00, while also rating the stock as "overweight." Leerink Partners initiated coverage with an "outperform" rating and a price objective of $215.00, and UBS Group began coverage, issuing a "neutral" rating with a target price of $196.00. Stifel Nicolaus has also decreased its price target from $210.00 to $180.00 while retaining a "buy" rating on the stock. The consensus reflects strong market confidence in the company, with notable buy ratings noted by analysts.

About Zoetis

Zoetis Inc. specializes in animal health, focusing on the discovery, development, production, and distribution of a wide range of medicines, vaccines, and diagnostic products for animals. The company’s products cater to a variety of species, including livestock like cattle, pigs, and sheep, as well as companion animals such as dogs and cats.

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