Dr. Reddy’s Laboratories (NYSE:RDY) Sets New 12-Month Low – Time to Sell?

Dr. Reddy’s Laboratories Ltd (NYSE:RDY) reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $12.19 and last traded at $11.9350, with a volume of 5648 shares. The stock had previously closed at $12.56.

Analyst Ratings Changes

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

Dr. Reddy’s Laboratories Stock Down 5.7%

The company has a market cap of $9.88 billion, a P/E ratio of 20.53, a PEG ratio of 1.89 and a beta of 0.25. The stock has a 50-day moving average of $13.59 and a 200 day moving average of $13.68. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.80 and a quick ratio of 1.34.

Dr. Reddy’s Laboratories (NYSE:RDY) last posted its quarterly earnings data on Tuesday, May 12th. The company reported $0.06 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.03). Dr. Reddy’s Laboratories had a return on equity of 12.34% and a net margin of 12.90%.The firm had revenue of $852.55 million for the quarter, compared to the consensus estimate of $886.58 million. Research analysts anticipate that Dr. Reddy’s Laboratories Ltd will post 0.52 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Robeco Institutional Asset Management B.V. lifted its stake in Dr. Reddy’s Laboratories by 0.5% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 13,154,524 shares of the company’s stock worth $184,690,000 after purchasing an additional 70,018 shares during the last quarter. Royal Bank of Canada increased its stake in shares of Dr. Reddy’s Laboratories by 4.6% in the 1st quarter. Royal Bank of Canada now owns 9,984,082 shares of the company’s stock valued at $138,293,000 after purchasing an additional 434,805 shares during the last quarter. Morgan Stanley raised its holdings in shares of Dr. Reddy’s Laboratories by 41.2% during the 4th quarter. Morgan Stanley now owns 8,926,051 shares of the company’s stock worth $125,322,000 after buying an additional 2,603,897 shares in the last quarter. Aikya Investment Management Ltd raised its holdings in shares of Dr. Reddy’s Laboratories by 9.3% during the 4th quarter. Aikya Investment Management Ltd now owns 7,338,525 shares of the company’s stock worth $103,033,000 after buying an additional 623,518 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its holdings in shares of Dr. Reddy’s Laboratories by 3.7% during the 4th quarter. BNP Paribas Financial Markets now owns 4,152,566 shares of the company’s stock worth $58,302,000 after buying an additional 149,384 shares in the last quarter. 3.85% of the stock is owned by institutional investors.

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.