Dr. Reddy’s Laboratories (NYSE:RDY) Stock Price Up 4.8% After Strong Earnings

Dr. Reddy’s Laboratories Ltd (NYSE:RDY)’s share price shot up 4.8% during trading on Monday following a stronger than expected earnings report. The stock traded as high as $13.80 and last traded at $13.8420. 731,928 shares changed hands during trading, a decline of 71% from the average daily volume of 2,521,505 shares. The stock had previously closed at $13.21.

The company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.02. Dr. Reddy’s Laboratories had a return on equity of 7.89% and a net margin of 8.56%. The firm had revenue of $903.89 million during the quarter, compared to analyst estimates of $894.94 million.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Citigroup upgraded shares of Dr. Reddy’s Laboratories from a “sell” rating to a “buy” rating and upped their target price for the company from $1,040.00 to $1,450.00 in a research note on Tuesday, September 29th. Jefferies Financial Group upgraded shares of Dr. Reddy’s Laboratories from an “underperform” rating to a “hold” rating and set a $13.90 price target on the stock in a research report on Sunday. JPMorgan Chase & Co. upgraded shares of Dr. Reddy’s Laboratories from an “underweight” rating to a “neutral” rating in a report on Monday. BNP Paribas Exane raised shares of Dr. Reddy’s Laboratories to an “outperform” rating and set a $14.80 price objective for the company in a research report on Monday, October 12th. Finally, Wall Street Zen raised shares of Dr. Reddy’s Laboratories from a “sell” rating to a “hold” rating in a research report on Saturday, October 17th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $492.90.

Institutional Investors Weigh In On Dr. Reddy’s Laboratories

A number of large investors have recently bought and sold shares of RDY. Royal Bank of Canada raised its holdings in shares of Dr. Reddy’s Laboratories by 4.6% in the first quarter. Royal Bank of Canada now owns 9,984,082 shares of the company’s stock valued at $138,293,000 after buying an additional 434,805 shares during the last quarter. Bessemer Group Inc. increased its position in Dr. Reddy’s Laboratories by 28.4% in the 1st quarter. Bessemer Group Inc. now owns 1,823,285 shares of the company’s stock valued at $25,253,000 after acquiring an additional 403,219 shares in the last quarter. Nykredit A S acquired a new stake in Dr. Reddy’s Laboratories in the 2nd quarter valued at about $2,000,000. Quantinno Capital Management LP increased its position in Dr. Reddy’s Laboratories by 71.2% in the 1st quarter. Quantinno Capital Management LP now owns 637,094 shares of the company’s stock valued at $8,824,000 after acquiring an additional 264,856 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new position in shares of Dr. Reddy’s Laboratories in the first quarter worth about $1,422,000. 3.85% of the stock is currently owned by institutional investors.

Dr. Reddy’s Laboratories Stock Performance

The stock’s 50 day simple moving average is $12.35 and its two-hundred day simple moving average is $12.91. The company has a market capitalization of $11.53 billion, a P/E ratio of 37.30, a P/E/G ratio of 2.75 and a beta of 0.29. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.90 and a quick ratio of 1.39.

About Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories Limited is a global pharmaceutical company headquartered in Hyderabad, India. Founded in 1984 by Dr. Kallam Anji Reddy, the company develops, manufactures and markets medicines intended to make healthcare more accessible.

Its business includes generic prescription drugs, active pharmaceutical ingredients, biosimilars, specialty products and over-the-counter consumer healthcare products. Dr. Reddy’s offers medicines across therapeutic areas such as cardiovascular care, diabetes, oncology, gastrointestinal health, pain management and dermatology.

The company serves patients and healthcare providers in India, the United States, Europe and a range of other international markets, including emerging markets.