Dr. Reddy's Laboratories (NYSE:RDY) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Dr. Reddy's Laboratories to “sell” from “hold,” adding to a more bearish analyst tone on the stock. Goldman Sachs and Weiss Ratings also recently lowered their views, and MarketBeat shows a consensus rating of “Reduce”.
• The company’s latest quarterly results missed earnings expectations, reporting $0.06 EPS versus the $0.09 estimate, while revenue came in roughly in line at $850.26 million. Analysts still expect full-year EPS of $0.51.
• Shares were trading at $11.78, near the lower end of their 52-week range of $11.36 to $15.67, and below both the 50-day and 200-day moving averages. The company has a market cap of about $9.83 billion and a very low debt-to-equity ratio of 0.03.

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

Other research analysts have also recently issued reports about the stock. The Goldman Sachs Group cut shares of Dr. Reddy's Laboratories from a "neutral" rating to a "sell" rating in a report on Thursday, April 23rd. Weiss Ratings cut Dr. Reddy's Laboratories from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Reduce".

Dr. Reddy's Laboratories Price Performance

NYSE:RDY opened at $11.78 on Friday. The company has a market cap of $9.83 billion, a P/E ratio of 26.76, a P/E/G ratio of 2.17 and a beta of 0.25. The firm's fifty day moving average price is $13.49 and its two-hundred day moving average price is $13.63. Dr. Reddy's Laboratories has a one year low of $11.36 and a one year high of $15.67. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.90 and a quick ratio of 1.34.

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) last posted its earnings results on Tuesday, July 21st. The company reported $0.06 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.03). The company had revenue of $850.26 million for the quarter, compared to analyst estimates of $850.56 million. Dr. Reddy's Laboratories had a return on equity of 9.49% and a net margin of 10.15%. Equities analysts expect that Dr. Reddy's Laboratories will post 0.51 earnings per share for the current year.

Institutional Investors Weigh In On Dr. Reddy's Laboratories

A number of large investors have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Dr. Reddy's Laboratories by 13.6% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,341 shares of the company's stock valued at $89,000 after acquiring an additional 760 shares in the last quarter. EWA LLC lifted its position in shares of Dr. Reddy's Laboratories by 7.0% during the 4th quarter. EWA LLC now owns 12,465 shares of the company's stock valued at $175,000 after acquiring an additional 818 shares during the period. Rockefeller Capital Management L.P. grew its holdings in shares of Dr. Reddy's Laboratories by 67.0% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,047 shares of the company's stock worth $29,000 after purchasing an additional 821 shares in the last quarter. Stifel Financial Corp grew its holdings in shares of Dr. Reddy's Laboratories by 3.8% during the 4th quarter. Stifel Financial Corp now owns 23,464 shares of the company's stock worth $329,000 after purchasing an additional 861 shares in the last quarter. Finally, Groupama Asset Managment increased its position in shares of Dr. Reddy's Laboratories by 1.7% in the fourth quarter. Groupama Asset Managment now owns 55,419 shares of the company's stock worth $778,000 after purchasing an additional 912 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.

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