NEW YORK (TheStreet) -- Shares of Zoetis (ZTS) jumped higher moments before the close on Tuesday, when it was revealed that hedge fund manager Bill Ackman took a $2 billion stake in the company. The stock is slightly lower in Wednesday's trading session.
Ackman is joined by another hedge fund, Sachem Head Capital Management, in the stake, which is approximately 10% of the now $22 billion animal pharmaceutical company.
Watch the video below for more details on Bill Ackman's stake in Zoetis:
"I have loved Zoetis, they are just the best," Jim Cramer, the co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Cramer's Mad Dash" segment.
He pointed out that Citigroup raised its price target on Zoetis to $49 from $44. Bank of America also raised its target to $49 from $41.
Ackman & Co. could make a push for an acquisition, Cramer reasoned, reminding viewers that the hedge fund manager also has a stake in Valeant Pharmaceuticals (VRX) . Valeant could become an acquirer, or at least that's what Ackman could push for.
Fundamentally speaking, not much has changed at the company since the stock was in the mid-$30s, he said. If a takeover deal does eventually get done for Zoetis, it will be done for more than $44 per share.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.