Dr. Reddy's Laboratories (NYSE:RDY) Sets New 1-Year Low - Time to Sell?

Key Points

• Dr. Reddy's hit a new 52-week low of $12.81 and was last trading around $12.8650, down roughly 1.8% on heavy volume.
• Weiss Ratings downgraded the stock from a Buy to a Hold, and analysts' consensus is a Hold with a target price of $16.90.
• The company reported Q3 EPS of $0.16 in line with estimates and revenue of $969.8M, with a low debt-to-equity (0.03) and solid net margin (16.41%), while analysts forecast 0.63 EPS for the current year.

Dr. Reddy's Laboratories Ltd (NYSE:RDY - Get Free Report) shares reached a new 52-week low during trading on Tuesday . The company traded as low as $12.81 and last traded at $12.8650, with a volume of 1267119 shares changing hands. The stock had previously closed at $13.09.

Analysts Set New Price Targets

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

Dr. Reddy's Laboratories Trading Down 1.8%

The stock has a market capitalization of $10.73 billion, a price-to-earnings ratio of 16.70, a PEG ratio of 20.75 and a beta of 0.35. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.38 and a current ratio of 1.88. The business has a 50-day moving average of $13.91 and a 200-day moving average of $13.89.

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 analysts' consensus estimates 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 analysts' expectations of $963.84 million. As a group, research analysts forecast that Dr. Reddy's Laboratories Ltd will post 0.63 EPS for the current year.

Institutional Trading of Dr. Reddy's Laboratories

A number of hedge funds have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in Dr. Reddy's Laboratories by 13.6% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,341 shares of the company's stock worth $89,000 after acquiring an additional 760 shares during the period. EWA LLC lifted its position in Dr. Reddy's Laboratories by 7.0% during the 4th quarter. EWA LLC now owns 12,465 shares of the company's stock worth $175,000 after acquiring an additional 818 shares during the period. Rockefeller Capital Management L.P. lifted its position in 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 acquiring an additional 821 shares during the period. Summit Global Investments lifted its position in Dr. Reddy's Laboratories by 0.7% during the 3rd quarter. Summit Global Investments now owns 124,364 shares of the company's stock worth $1,739,000 after acquiring an additional 856 shares during the period. Finally, Stifel Financial Corp lifted its position in 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 acquiring an additional 861 shares during the period. 3.85% of the stock is owned by institutional investors and hedge funds.

About Dr. Reddy's Laboratories

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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