Dr. Reddy’s Laboratories (NYSE:RDY) Sets New 1-Year High – Still a Buy?

Dr. Reddy’s Laboratories Ltd (NYSE:RDY)’s stock price reached a new 52-week high during trading on Friday . The company traded as high as $15.49 and last traded at $15.5580, with a volume of 131211 shares trading hands. The stock had previously closed at $15.25.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on RDY shares. The Goldman Sachs Group downgraded shares of Dr. Reddy’s Laboratories from a “neutral” rating to a “sell” rating in a research note on Thursday, April 23rd. Weiss Ratings cut shares of Dr. Reddy’s Laboratories from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Reduce”.

Dr. Reddy’s Laboratories Stock Up 2.0%

The firm has a market cap of $12.98 billion, a price-to-earnings ratio of 26.84, a PEG ratio of 2.02 and a beta of 0.27. The firm has a 50 day moving average of $13.45 and a 200 day moving average of $13.72. The company has a quick ratio of 1.34, a current ratio of 1.80 and a debt-to-equity ratio of 0.03.

Dr. Reddy’s Laboratories (NYSE:RDY) last issued its quarterly earnings results on Tuesday, May 12th. The company reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.03). The business had revenue of $852.55 million during the quarter, compared to analyst estimates of $886.58 million. Dr. Reddy’s Laboratories had a net margin of 12.90% and a return on equity of 12.34%. As a group, sell-side analysts predict that Dr. Reddy’s Laboratories Ltd will post 0.53 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Invesco Ltd. lifted its position in shares of Dr. Reddy’s Laboratories by 7.6% during the 2nd quarter. Invesco Ltd. now owns 253,342 shares of the company’s stock valued at $3,808,000 after acquiring an additional 17,907 shares during the period. EverSource Wealth Advisors LLC increased its stake in Dr. Reddy’s Laboratories by 71.7% in the second quarter. EverSource Wealth Advisors LLC now owns 3,100 shares of the company’s stock valued at $47,000 after purchasing an additional 1,294 shares in the last quarter. First Trust Advisors LP increased its stake in Dr. Reddy’s Laboratories by 23.3% in the second quarter. First Trust Advisors LP now owns 65,652 shares of the company’s stock valued at $987,000 after purchasing an additional 12,390 shares in the last quarter. Sei Investments Co. raised its holdings in shares of Dr. Reddy’s Laboratories by 37.3% during the second quarter. Sei Investments Co. now owns 124,136 shares of the company’s stock valued at $1,866,000 after purchasing an additional 33,747 shares during the period. Finally, Quantinno Capital Management LP raised its holdings in shares of Dr. Reddy’s Laboratories by 92.6% during the second quarter. Quantinno Capital Management LP now owns 235,044 shares of the company’s stock valued at $3,533,000 after purchasing an additional 112,988 shares during the period. Institutional investors and hedge funds own 3.85% of the company’s stock.

Dr. Reddy’s Laboratories Company Profile

Dr. Reddy’s Laboratories Ltd. is an India‐based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company’s core activities include the development and commercialization of cost‐effective generic treatments for branded drugs that have lost patent protection, along with in‐house research into innovative molecule development.