Zoetis climbs after unveiling $1.75 bln convertible offering for stock buybacks

Zoetis

15/12/2025 16:43

Updates stock activity

    ** Animal healthcare firm Zoetis' ZTS.N shares reverse premarket losses and last up 1.9% at $120.91 on Mon as it seeks capital to buy back stock

    ** Parsippany, New Jersey-based ZTS early Mon announced private offering of $1.75 bln convertible notes due June 2029

** It intends to use net offering proceeds to repurchase common stock no later than end of Q1 2026

** Co also plans to use proceeds to fund cost of capped calls, derivative transactions employed to help mitigate potential dilution

** With ~440.7 mln shares outstanding, ZTS has ~$53 bln current market cap

** Co last month trimmed its annual rev forecast on softer demand for its medicines and vaccines for pets and livestock, sending its shares to lowest in over 5 years

** With the moves on the session, ZTS shares down ~26% YTD and well underperforming ~13% advance in S&P 500 Healthcare index .SPXHC and 16% gain in S&P 500 .SPX

    ** Per latest LSEG data, 14 of 19 a
    nalysts rate shares "strong buy" or "buy", 5 have "hold"; median PT of $160 down from $197.50 on Sept 15

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))