On May 23, 2023, Kristin Peck, CEO of Zoetis Inc (ZTS, Financial), sold 13,000 shares of the company's stock. This insider sell comes after a year in which Peck has sold a total of 23,000 shares and purchased none. In this article, we will take a closer look at Kristin Peck, Zoetis Inc, and the relationship between insider transactions and stock price.
Who is Kristin Peck of Zoetis Inc?
Kristin Peck is the Chief Executive Officer of Zoetis Inc, a leading global animal health company. She has been with the company since its inception in 2013 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 grown to become a global leader in animal health, providing innovative solutions to veterinarians, livestock producers, and pet owners.
Zoetis Inc's Business Description
Zoetis Inc is a global animal health company that discovers, develops, manufactures, and commercializes medicines, vaccines, and diagnostic products for both livestock and companion animals. The company's products are designed to improve the health and well-being of animals, as well as to support the veterinarians, livestock producers, and pet owners who care for them. Zoetis serves customers in more than 100 countries and has a diverse portfolio of products, including anti-infectives, vaccines, parasiticides, diagnostics, and other pharmaceutical products.
Analysis of Insider Buy/Sell and the Relationship with the Stock Price
Over the past year, there have been no insider buys for Zoetis Inc, while there have been 8 insider sells. This trend may raise concerns for some investors, as it could indicate that insiders are not confident in the company's future prospects. However, it is essential to consider other factors, such as the company's valuation and overall performance, before drawing any conclusions.
Valuation
On the day of Kristin Peck's recent sell, shares of Zoetis Inc were trading at $176.56 apiece, giving the stock a market cap of $76,128.354 million. The price-earnings ratio is 37.19, which is higher than the industry median of 22.3 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, 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 sell by Kristin Peck may raise some concerns, it is essential to consider the company's valuation and overall performance. Zoetis Inc's stock is currently trading at a modestly undervalued level, and the company has a strong track record of growth and innovation in the animal health industry. Investors should keep a close eye on the company's performance and any future insider transactions to make informed decisions about their investments.
