Insider buying can provide investors with crucial insights. Insiders sell company stock for many reasons. But they only buy stock for one reason – they expect it to go up.
In this report, we are going to highlight some insider buying at Zoetis Inc (ZTS:US). Zoetis is a global animal health company that is engaged in the development, manufacture, and commercialization of animal health medicines, vaccines and diagnostic products. It is listed on the New York Stock Exchange and currently has a market capitalization of $75.7 billion.
Zoetis Inc: Insider Buying
Our records show that on 19 February, Zoetis board member Robert Scully purchased 7,590 shares in the company at a price of $164.68 per share. This transaction cost the insider approximately $1.2 million.
This insider transaction is worth highlighting due to the fact that Scully – who has been on the Zoetis board since 2013 – has significant experience in the investment management industry. Previously he held several top positions at Morgan Stanley, including Co-President of the firm, Chairman of global capital markets and Vice Chairman of investment banking. Prior to joining Morgan Stanley, he served as a managing director at Lehman Brothers and at Salomon Brothers. This experience means he is likely to have a good understanding of the stock’s potential.
Zoetis’ fourth-quarter results were solid. For the quarter, revenue came in at $1.8 billion, up 8% year on year, while earnings per share came in at $0.75 versus $0.80 last year. Meanwhile, for the full year 2020, the company reported revenue of $6.7 billion, up 7% year on year, and EPS of $3.42, up from $3.11 in 2019.
In terms of guidance, management said that it expects growth to accelerate.
"Looking forward, we believe this momentum sets us up for a strong 2021, even amidst ongoing COVID-19 uncertainty. We expect to continue growing revenue faster than the market in 2021 driven by continued strength in pet care; ongoing expansion in markets outside the U.S., most notably China; and acceleration of our diagnostics portfolio penetration. As a result, we are guiding to full-year operational growth of 9% to 11% in revenue," said CEO Kristin Peck.
In light of the confident tone from management, we see the insider buying here as a bullish signal.