Exploring Zoetis Inc. (ZTS) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind Zoetis Inc. (ZTS), the world's leading animal health company with a revenue of $8.5 billion in 2023? As of December 30, 2024, institutional investors hold a significant stake in the company, with The Vanguard Group, Inc. holding 9.27% of shares, and BlackRock, Inc. with 8.68%. But what does this mean for the company’s direction and stability, especially considering the recent share price decline of 3.41% from $151.94 on April 17, 2024, to $146.76 as of April 16, 2025? Let’s delve into the investor profile of Zoetis to understand who is buying, who is selling, and, most importantly, why.

Zoetis Inc. (ZTS) Who Invests in Zoetis Inc. and Why?

Understanding the investor profile of Zoetis Inc. (ZTS) provides valuable insights into the market's perception of the company. Investors are attracted to Zoetis for a variety of reasons, influenced by the company's financial health, growth prospects, and position in the animal health industry. Let's explore the key investor types, their motivations, and typical investment strategies.

Key Investor Types

The investor base of Zoetis Inc. is diverse, including:

• Retail Investors: Individuals who invest in Zoetis shares for personal investment portfolios.
• Institutional Investors: These include mutual funds, pension funds, insurance companies, and other large entities that manage investments on behalf of others.
• Hedge Funds: Investment partnerships that use pooled funds and employ different strategies to earn active return, or alpha, for their investors.

Investment Motivations

Different factors attract investors to Zoetis Inc. These often include:

• Growth Prospects: The animal health market is expanding, driven by increased pet ownership and rising demand for livestock production. Zoetis is well-positioned to capitalize on these trends.
• Dividends: Zoetis distributes dividends, making it attractive to income-seeking investors.
• Market Position: As a leading player in the animal health industry, Zoetis benefits from brand recognition, a broad product portfolio, and a global presence.

Investment Strategies

Investors in Zoetis may employ various strategies, such as:

• Long-Term Holding: Many investors view Zoetis as a stable, long-term investment due to its consistent performance and growth potential.
• Short-Term Trading: Some investors engage in short-term trading strategies to profit from price fluctuations in Zoetis shares.
• Value Investing: Value investors may be attracted to Zoetis if they believe the company is undervalued by the market.

To further illustrate the composition of Zoetis Inc.'s investor base, consider the following hypothetical breakdown:

Understanding these investor profiles, motivations, and strategies can provide a clearer picture of market sentiment toward Zoetis Inc. and its potential for future growth. For more insights into the company's financial performance, check out Breaking Down Zoetis Inc. (ZTS) Financial Health: Key Insights for Investors.

Zoetis Inc. (ZTS) Institutional Ownership and Major Shareholders of Zoetis Inc. (ZTS)

Institutional investors and major shareholders play a significant role in Zoetis Inc. (ZTS), influencing its stock price and corporate strategy. Examining their holdings and recent activities provides valuable insights into the market's perception of the company.

Here's an overview of Zoetis Inc.'s (ZTS) institutional ownership and major shareholders:

• Top Institutional Investors: These are the firms holding the largest stakes in Zoetis Inc. (ZTS).
• Changes in Ownership: Tracking whether these investors have increased or decreased their positions recently is crucial.
• Impact of Institutional Investors: Understanding how these large investors affect the company's stock price and strategic decisions is essential.

As of the latest available data, the top institutional holders of Zoetis Inc. (ZTS) include:

• Vanguard Group Inc: As of March 31, 2025, Vanguard Group Inc. holds 32,978,497 shares, representing 7.15% ownership.
• BlackRock Fund Advisors: As of March 31, 2025, BlackRock Fund Advisors holds 27,743,886 shares, representing 6.02% ownership.
• State Street Global Advisors: As of March 31, 2025, State Street Global Advisors holds 14,725,093 shares, representing 3.19% ownership.
• Wellington Management Company: As of March 31, 2025, Wellington Management Company holds 13,274,323 shares, representing 2.88% ownership.
• Geode Capital Management LLC: As of March 31, 2025, Geode Capital Management LLC holds 5,938,568 shares, representing 1.29% ownership.

Examining recent changes in ownership can reveal investor sentiment. For instance, significant increases in holdings by institutional investors may indicate a positive outlook for Zoetis Inc. (ZTS), while decreases may suggest concerns about the company's future performance.

Institutional investors play a pivotal role in Zoetis Inc.'s (ZTS) stock price and strategic direction. Their substantial holdings can lead to significant trading activity, influencing short-term price movements. Moreover, these investors often engage with company management, providing insights and guidance on strategic decisions.

Here is a detailed table of Zoetis Inc.'s (ZTS) major shareholders:

Understanding the composition and activities of Zoetis Inc.'s (ZTS) major shareholders is crucial for investors seeking to make informed decisions. By monitoring changes in institutional ownership and analyzing the impact of these investors, stakeholders can gain a deeper understanding of the company's market dynamics and strategic direction.

To gain more insights into the company's goals and values, check out: Mission Statement, Vision, & Core Values of Zoetis Inc. (ZTS).

Zoetis Inc. (ZTS) Key Investors and Their Impact on Zoetis Inc. (ZTS)

Understanding who invests in Zoetis Inc. (ZTS) and why can offer valuable insights into the company's stability, growth potential, and strategic direction. Key investors can significantly influence company decisions and stock performance through their investment activities and engagement with management.

Institutional investors represent a significant portion of Zoetis Inc.'s (ZTS) shareholder base. As of December 31, 2024, institutional investors held approximately 85% of Zoetis Inc.'s (ZTS) outstanding shares. These investors include mutual funds, pension funds, hedge funds, and other financial institutions, demonstrating broad confidence in the company's long-term prospects.

Here are some of the notable institutional investors in Zoetis Inc. (ZTS):

• Vanguard Group: As one of the largest asset managers globally, Vanguard holds a substantial position in Zoetis Inc. (ZTS). Their investment reflects a belief in the company's consistent performance and growth within the animal health industry.
• BlackRock Fund Advisors: BlackRock, another leading asset manager, maintains a significant stake in Zoetis Inc. (ZTS). Their investment underscores confidence in Zoetis Inc.'s (ZTS) market leadership and innovation.
• State Street Corporation: State Street, known for its index funds and ETFs, also holds a notable position in Zoetis Inc. (ZTS). This investment indicates Zoetis Inc.'s (ZTS) inclusion in major market indices and its appeal to passive investment strategies.
• Capital World Investors: As a large investment firm, Capital World Investors has a considerable stake in Zoetis Inc. (ZTS), suggesting a positive outlook on the company's international growth and market strategies.

These major investors often engage with Zoetis Inc.'s (ZTS) management regarding company strategy, financial performance, and corporate governance. Their influence can drive changes in company policy, investment decisions, and strategic initiatives.

Recent trading activities by these major investors can provide insights into current sentiment and potential stock movements. For instance:

• Buying Activity: Increased buying activity by institutional investors may signal confidence in Zoetis Inc.'s (ZTS) future performance, possibly driven by positive earnings reports, new product launches, or favorable market trends.
• Selling Activity: Conversely, significant selling activity could indicate concerns about Zoetis Inc.'s (ZTS) prospects, potentially triggered by factors such as regulatory changes, increased competition, or macroeconomic headwinds.

Analyzing these movements can help investors understand the broader market sentiment toward Zoetis Inc. (ZTS) and anticipate potential shifts in stock valuation.

Hedge funds and activist investors can also play a role in Zoetis Inc.'s (ZTS) investor landscape. While specific activist campaigns may vary, these investors often seek to influence company strategy to unlock shareholder value.

Key areas of focus for activist investors might include:

• Operational Efficiency: Pushing for cost reductions, process improvements, and enhanced productivity.
• Capital Allocation: Advocating for strategic investments, divestitures, or share buybacks to optimize capital deployment.
• Corporate Governance: Promoting changes to board composition, executive compensation, or shareholder rights to improve governance practices.

Notable activist investments and their outcomes can provide valuable lessons for understanding how investor activism can shape corporate strategy and performance.

Understanding the composition and activities of Zoetis Inc.'s (ZTS) investor base is crucial for assessing the company's stability and growth potential. Monitoring the moves of key institutional investors, analyzing trading patterns, and understanding the influence of activist shareholders can provide a comprehensive view of market sentiment and potential future performance. For more insights into Zoetis Inc.'s (ZTS) strategic direction, see: Mission Statement, Vision, & Core Values of Zoetis Inc. (ZTS).

Zoetis Inc. (ZTS) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions to key investor activities is crucial for assessing the potential future performance of Zoetis Inc. (ZTS). Here's an overview of the current investor landscape:

Investor Sentiment:

Currently, analysts have a 'Slightly Bullish' outlook on Zoetis, noting 10 positive and 6 negative indicators. Strengths include low volatility, superior returns on equity and assets, and positive cash flows, suggesting stability and profitability. However, high valuations and leverage, alongside limited dividend growth, represent potential downsides for conservative investors.

Recent data indicates mixed sentiment among Indian investors:

• Investment in Zoetis shares from India has grown by 44.83% over the past 30 days, indicating increased transactional activity.
• However, search interest for Zoetis stock from India has decreased by -53% in the same period, reflecting a downward trend in search activity.

Major Shareholders:

Institutional investors hold a significant portion of Zoetis stock. As of December 30, 2024, the largest shareholders include:

• Vanguard Group Inc: 9.27%
• BlackRock, Inc: 8.68%
• State Street Global Advisors, Inc: 4.45%
• State Farm Insurance Companies, Asset Management Arm: 3.59%
• AllianceBernstein L.P: 2.65%
• Geode Capital Management, LLC: 2.38%

These institutions collectively hold a substantial number of shares, influencing the stock's stability and direction.

Recent Market Reactions:

Zoetis' stock price has experienced some volatility. As of April 16, 2025, the share price was $146.76, a 3.41% decline from $151.94 on April 17, 2024.

Recent market activity includes:

• A -1.16% adjustment in the stock price, closing at $163.11 on a recent trading day.
• The stock has gained 0.02% over the past month, outperforming the Medical sector's loss of 2.45% and the S&P 500's loss of 2.79% during the same period.

Analyst Perspectives:

Analysts' opinions on Zoetis vary, with price targets ranging from $165.00 to $242.00. The average price target is $204.88, representing a potential 37.81% increase from the current price of $148.67. Current analyst recommendations show:

• 86% Buy
• 13% Hold
• 0% Sell

However, some analysts have lowered their price targets in recent months, reflecting concerns about market dynamics and company performance.

Institutional Activity:

Recent 13F filings indicate significant activity among institutional investors:

• Douglas Lane & Associates, LLC added 75,157 shares of ZTS to their portfolio.
• COMGEST GLOBAL INVESTORS S.A.S. added 147,154 shares.
• MIZUHO SECURITIES USA LLC reduced their holdings by 4,822,240 shares (-99.1%) in Q4 2024.
• ALLIANCEBERNSTEIN L.P. decreased their position by 3,579,168 shares (-23.3%) in Q4 2024.
• WELLINGTON MANAGEMENT GROUP LLP added 3,059,255 shares (+78.5%) in Q4 2024.
• BANK OF AMERICA CORP /DE/ reduced their stake by 2,862,078 shares (-19.9%) in Q4 2024.

These changes reflect ongoing adjustments in investment strategies and sentiment toward Zoetis.

Earnings and Revenue Estimates:

Analysts project the following for Zoetis:

• Next quarter's earnings per share (EPS) estimate: $1.42 (range of $1.34 to $1.60).
• Next quarter's sales forecast: $2.20 billion (range of $2.16 billion to $2.25 billion).
• Full-year earnings estimate: $6.08 per share, a +2.7% change from the preceding year.
• Full-year revenue estimate: $9.31 billion, a +0.59% change from the preceding year.

These estimates indicate a generally positive outlook, with potential for continued growth.

Valuation:

Zoetis is currently trading at a Forward P/E ratio of 27.15, which is a premium compared to its industry's average of 15.51. The PEG ratio is 2.91, also higher than the industry average, suggesting a higher valuation relative to expected earnings growth.

Insider Trading:

Insiders at Zoetis have been primarily selling shares. In the past 6 months, there have been 0 purchases and 5 sales by insiders, including:

• ROBERT J POLZER (Executive Vice President) sold 3,477 shares for an estimated $617,028.
• WILLIE M REED sold 1,210 shares for an estimated $201,029.

Overall, Zoetis Inc. faces a mix of positive growth prospects and challenges related to market volatility and valuation. Monitoring these factors is essential for making informed investment decisions. For more insights into the company's strategic direction, you might find this link helpful: Mission Statement, Vision, & Core Values of Zoetis Inc. (ZTS).