Harvey Investment Co. LLC has expanded its holdings in Zoetis Inc. (NYSE: ZTS) by 15.8% during the third quarter of 2023. This increase is documented in the firm’s latest 13F filing with the Securities and Exchange Commission (SEC). Following the acquisition of an additional 5,810 shares, Harvey Investment Co. LLC now owns a total of 42,623 shares, valued at approximately $6.24 million at the end of the reporting period.
A trend of increased investment in Zoetis has emerged among several institutional investors. Notably, Norges Bank made a significant move by purchasing a new stake in Zoetis during the second quarter, valued at around $809.49 million. Additionally, Mitsubishi UFJ Asset Management Co. Ltd. increased its stake by an impressive 113%, acquiring 1,995,491 shares and bringing its total to 3,761,920 shares worth $586.67 million.
Other notable investors include Corient Private Wealth LLC, which raised its holdings in Zoetis by 85.9%, now owning 2,578,593 shares valued at $400.62 million, and Impax Asset Management Group plc, which raised its position by 362.6%, now holding 1,176,996 shares worth $182.71 million. Furthermore, Swedbank AB increased its stake by 60.4% during the third quarter, now owning 2,436,888 shares valued at $356.57 million. Overall, institutional investors control approximately 92.8% of Zoetis’s stock.
Analysts Weigh In on Zoetis Stock
Recent analyses from various financial institutions have provided mixed reviews on Zoetis stock. On November 18, 2023, Stifel Nicolaus lowered its price objective from $140.00 to $130.00 while maintaining a “hold” rating. In contrast, The Goldman Sachs Group upgraded Zoetis to a “buy” rating on December 15, 2023.
Additionally, KeyCorp initiated coverage on Zoetis with a “sector weight” rating on November 20, 2023. Weiss Ratings reiterated a “sell (d+)” rating on December 29, 2023, while Barclays issued an “equal weight” rating with a target price of $136.00 on December 8, 2023. Currently, six analysts rate the stock as a “buy,” seven as a “hold,” and one as a “sell.” The consensus rating is “hold” with an average target price of $160.18, according to data from MarketBeat.com.
Zoetis Financial Performance and Dividend Increase
On November 4, 2023, Zoetis reported its quarterly earnings, revealing an earnings per share (EPS) of $1.70, surpassing analysts’ expectations of $1.62 by $0.08. The company generated $2.40 billion in revenue, slightly below the anticipated $2.42 billion. Compared to the same quarter last year, the revenue increased by 0.5%, with the previous year’s EPS at $1.58.
Looking ahead, Zoetis has set its guidance for the fiscal year 2025 at an EPS of $6.30 to $6.40. Research analysts expect the company to post an EPS of $6.07 for the current fiscal year.
In addition to its financial performance, Zoetis has announced an increase in its quarterly dividend. The company will pay a dividend of $0.53 per share on March 3, 2024, to shareholders recorded on January 20, 2024. This new dividend reflects an increase from the previous rate of $0.50 per share, resulting in an annualized dividend of $2.12 and a yield of 1.7%. The company’s dividend payout ratio stands at 33.67%.
Founded from the animal health division of Pfizer, Zoetis Inc. has established itself as a global leader in animal health, providing a diverse array of products and services aimed at improving the health and productivity of both companion animals and livestock.
