On May 23, 2023, Kristin Peck, CEO of Zoetis Inc (ZTS, Financial), sold 13,000 shares of the company's stock. This recent transaction is part of a broader trend of insider selling at Zoetis Inc, with 8 insider sells over the past year and no insider buys during the same period.
Who is Kristin Peck of Zoetis Inc?
Kristin Peck has been the Chief Executive Officer of Zoetis Inc since January 2020. She joined the company in 2012 and has held various leadership positions, including Executive Vice President and Group President, U.S. Operations, Business Development, and Strategy. Under her leadership, Zoetis has continued to grow and expand its global presence in the animal health industry.
Zoetis Inc's Business Description
Zoetis Inc is a global leader in the discovery, development, manufacture, and commercialization of animal health medicines and vaccines. The company's products are designed to help veterinarians, livestock producers, and pet owners to improve the health and well-being of their animals. Zoetis serves customers in more than 100 countries and has a diverse portfolio of products for both livestock and companion animals, including anti-infectives, vaccines, parasiticides, diagnostics, and other pharmaceutical products.
Insider Trading Analysis
Over the past year, Kristin Peck has sold a total of 23,000 shares and purchased 0 shares. This recent sale of 13,000 shares is a notable transaction, as it may indicate her sentiment towards the company's stock and its future prospects. The lack of insider buying over the past year, combined with the 8 insider sells, could be a cause for concern for some investors.
It is essential to consider the relationship between insider trading and stock price. While insider selling can sometimes be a bearish signal, it is not always indicative of a company's future performance. Insiders may sell shares for various reasons, such as personal financial needs or portfolio diversification. Therefore, it is crucial to analyze the broader context of the company's financial health and market conditions before drawing conclusions based on insider trading activity.
Valuation
On the day of Kristin Peck's recent sale, shares of Zoetis Inc were trading at $176.56 apiece, giving the stock a market cap of $76,359.41 million. The price-earnings ratio is 37.30, which is higher than the industry median of 22.39 but lower than the company's historical median price-earnings ratio.
With a price of $176.56 and a GuruFocus Value of $202.14, Zoetis Inc has a price-to-GF-Value ratio of 0.87. This means the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, while the recent insider selling activity at Zoetis Inc, including Kristin Peck's sale of 13,000 shares, may raise concerns for some investors, it is essential to consider the company's overall financial health and market conditions. The stock is currently trading at a modestly undervalued level based on its GF Value, which could present an opportunity for investors looking to enter the animal health industry.
