Dr. Reddy's Laboratories (NYSE:RDY) Rating Lowered to Sell at The Goldman Sachs Group

Key Points

• Goldman Sachs downgraded Dr. Reddy's from "neutral" to "sell" and Weiss Ratings cut it from "buy (b-)" to "hold (c+)," leaving the consensus analyst rating at Hold with an average price target of $16.90.
• The stock rose 5.7% to $13.58 on heavy volume despite the downgrades; market capitalization is about $11.33 billion, P/E 17.62, and a 52-week range of $12.77–$16.17.
• Quarterly results met expectations (EPS $0.16; revenue $969.8M vs. $963.8M est.) and showed solid profitability metrics (ROE 15.89%, net margin 16.41%).

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) was downgraded by research analysts at The Goldman Sachs Group from a "neutral" rating to a "sell" rating in a research report issued on Thursday, Marketbeat reports.

Separately, Weiss Ratings lowered Dr. Reddy's Laboratories from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, February 13th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Dr. Reddy's Laboratories currently has an average rating of "Hold" and an average price target of $16.90.

Dr. Reddy's Laboratories Stock Up 5.7%

NYSE RDY traded up $0.74 on Thursday, reaching $13.58. The company had a trading volume of 6,227,324 shares, compared to its average volume of 2,117,257. Dr. Reddy's Laboratories has a 52-week low of $12.77 and a 52-week high of $16.17. The stock has a market capitalization of $11.33 billion, a P/E ratio of 17.62, a P/E/G ratio of 19.84 and a beta of 0.35. The company's fifty day moving average is $13.86 and its 200 day moving average is $13.88. The company has a quick ratio of 1.38, a current ratio of 1.88 and a debt-to-equity ratio of 0.03.

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) last announced its earnings results on Wednesday, January 21st. The company reported $0.16 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.16. Dr. Reddy's Laboratories had a return on equity of 15.89% and a net margin of 16.41%.The firm had revenue of $969.81 million during the quarter, compared to analyst estimates of $963.84 million. Sell-side analysts anticipate that Dr. Reddy's Laboratories will post 0.63 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Dr. Reddy's Laboratories

A number of institutional investors have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in Dr. Reddy's Laboratories by 13.6% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,341 shares of the company's stock valued at $89,000 after buying an additional 760 shares during the last quarter. EWA LLC grew its holdings in Dr. Reddy's Laboratories by 7.0% in the fourth quarter. EWA LLC now owns 12,465 shares of the company's stock valued at $175,000 after purchasing an additional 818 shares during the period. Rockefeller Capital Management L.P. boosted its stake in shares of Dr. Reddy's Laboratories by 67.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,047 shares of the company's stock worth $29,000 after acquiring an additional 821 shares during the last quarter. Summit Global Investments lifted its position in Dr. Reddy's Laboratories by 0.7% during the third quarter. Summit Global Investments now owns 124,364 shares of the company's stock worth $1,739,000 after buying an additional 856 shares in the last quarter. Finally, Stifel Financial Corp lifted its position in Dr. Reddy's Laboratories by 3.8% during the fourth quarter. Stifel Financial Corp now owns 23,464 shares of the company's stock worth $329,000 after buying an additional 861 shares in the last quarter. Institutional investors 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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