Mesirow Financial Investment Management Inc. Increases Stake in Zoetis Inc.

Mesirow Financial Investment Management Inc. has significantly increased its investment in Zoetis Inc. (NYSE:ZTS - Free Report) by 105.5% in the third quarter of this year. According to their latest 13F filing with the Securities and Exchange Commission, the firm now owns 82,298 shares of Zoetis after acquiring an additional 42,258 shares during this period. As of their most recent report, the value of Mesirow Financial's holdings in Zoetis stands at approximately $16.08 million.

Several other hedge funds have also modified their positions in Zoetis. For instance, Prevail Innovative Wealth Advisors LLC raised its stake by 24.5% in the first quarter, now owning 18,977 shares valued at $3.21 million after an additional purchase of 3,738 shares. M&G Plc also entered a new position worth about $19.82 million in the same quarter. Additionally, Cetera Investment Advisers increased its stake by a remarkable 275.2% in the first quarter, owning 96,085 shares worth around $16.26 million after acquiring 70,476 shares. Sei Investments Co. boosted its holdings by 19.6%, holding 370,069 shares valued at $62.62 million after purchasing 60,698 shares. Furthermore, Acadian Asset Management LLC increased its stake by 49.6%, now possessing 25,051 shares valued at $4.24 million after acquiring 8,302 shares. Overall, about 92.80% of Zoetis stocks are owned by institutional investors.

Changes in Analyst Ratings

The stock has also seen various updates from research analysts. BTIG Research raised its price target for Zoetis from $220.00 to $225.00 and maintained a 'buy' rating as of August 12. Following suit, Piper Sandler uplifted their target from $195.00 to $210.00, giving it an 'overweight' rating on August 14. In a report dated August 9, Argus upgraded Zoetis to a 'strong-buy' rating while Stifel Nicolaus increased their target price from $200.00 to $210.00 on September 18. Most recently, JPMorgan Chase & Co. raised its price target on Zoetis from $225.00 to $230.00, reiterating an 'overweight' rating on October 11. In total, ten investment analysts have given the stock a 'buy' rating, while one has deemed it a strong buy. According to MarketBeat, the stock currently holds an average rating of 'Buy' with a consensus price target of $221.44.

Current Performance of Zoetis Stock

As of Friday, Zoetis stock opened at $176.82. The company has a 50-day moving average price of $188.15, and a 200-day moving average of $179.35. With a debt-to-equity ratio of 1.26, a quick ratio of 2.09, and a current ratio of 3.69, Zoetis presents a varied financial picture. The stock has recorded a 52-week low of $144.80 and a high of $201.92, with a market capitalization of $79.78 billion. The price-to-earnings ratio sits at 33.24, while the PEG ratio is 2.71. The stock has a beta of 0.90, indicating lower volatility compared to the market.

Earnings Results and Upcoming Dividend

On November 4, Zoetis announced its recent earnings results, reporting earnings per share (EPS) of $1.58 for the quarter, surpassing analyst expectations of $1.46 by $0.12. The company achieved a net margin of 26.55% and a return on equity of 51.98%. Revenue for the quarter came in at $2.40 billion, beating estimates of $2.29 billion. This marks an increase of 11.6% year-over-year compared to the prior year’s EPS of $1.36. Analysts anticipate that Zoetis Inc. will report an EPS of 5.9 for the current year.

Moreover, Zoetis has also recently declared its quarterly dividend, scheduled to be distributed on December 3. Shareholders who are on record as of October 31 will receive a dividend of $0.432, with an ex-dividend date on that same day. This dividend reflects an annualized yield of 0.98%, representing a total yearly payout of $1.73. Currently, the company has a payout ratio of 32.52%.

About Zoetis Inc.

Zoetis Inc. is engaged in the discovery, development, manufacturing, and commercialization of a wide range of animal health medications, vaccines, and diagnostic products. The company primarily focuses on animals, including livestock such as cattle, swine, poultry, fish, and sheep, along with companion animals like dogs, cats, and horses.

Final Remarks

In summary, Mesirow Financial's increased investment in Zoetis is part of a broader trend among institutions reassessing their portfolios regarding this prominent player in the animal health sector. With positive earnings reports and favorable analyst ratings, Zoetis continues to attract attention in the stock market.

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