Causeway Capital Management LLC Decreases Stock Position in Dr. Reddy's Laboratories Ltd $RDY

Key Points

• Causeway Capital Management LLC has significantly reduced its holdings in Dr. Reddy's Laboratories, selling 394,866 shares and lowering its ownership by 73.2% in the 1st quarter.
• Meanwhile, Royal Bank of Canada and Dimensional Fund Advisors LP substantially increased their positions in the company, with Royal Bank boosting its stake by 403.1% and Dimensional by 405.9% during the 4th quarter.
• Dr. Reddy's Laboratories recently reported a 12-month low of $12.26 and a high of $16.77, with earnings per share of $0.20 for the last quarter, surpassing analysts' expectations.

Causeway Capital Management LLC decreased its position in shares of Dr. Reddy's Laboratories Ltd (NYSE:RDY - Free Report) by 73.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 144,439 shares of the company's stock after selling 394,866 shares during the quarter. Causeway Capital Management LLC's holdings in Dr. Reddy's Laboratories were worth $1,905,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Costello Asset Management INC bought a new position in Dr. Reddy's Laboratories in the 1st quarter valued at approximately $26,000. Legacy Advisors LLC acquired a new stake in Dr. Reddy's Laboratories in the 1st quarter valued at $41,000. Tower Research Capital LLC TRC grew its position in Dr. Reddy's Laboratories by 623.6% in the 4th quarter. Tower Research Capital LLC TRC now owns 3,032 shares of the company's stock valued at $48,000 after purchasing an additional 2,613 shares during the period. Allworth Financial LP grew its position in Dr. Reddy's Laboratories by 28.4% in the 1st quarter. Allworth Financial LP now owns 3,504 shares of the company's stock valued at $49,000 after purchasing an additional 776 shares during the period. Finally, Cullen Frost Bankers Inc. purchased a new position in Dr. Reddy's Laboratories during the 1st quarter worth $62,000. 3.85% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

RDY has been the topic of a number of recent analyst reports. Wall Street Zen upgraded Dr. Reddy's Laboratories from a "hold" rating to a "buy" rating in a research note on Thursday, May 8th. Zacks Research raised Dr. Reddy's Laboratories from a "strong sell" rating to a "hold" rating in a report on Friday, August 15th. Hsbc Global Res raised Dr. Reddy's Laboratories from a "hold" rating to a "strong-buy" rating in a research note on Thursday, June 5th. Finally, HSBC upgraded Dr. Reddy's Laboratories from a "hold" rating to a "buy" rating and upped their target price for the company from $14.44 to $16.90 in a report on Thursday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, Dr. Reddy's Laboratories presently has an average rating of "Moderate Buy" and a consensus target price of $16.95.

Dr. Reddy's Laboratories Price Performance

RDY traded down $0.02 on Friday, hitting $14.20. 920,285 shares of the company's stock traded hands, compared to its average volume of 1,808,328. The firm has a market cap of $11.85 billion, a price-to-earnings ratio of 21.51, a P/E/G ratio of 5.75 and a beta of 0.29. The company's 50 day simple moving average is $14.51 and its 200-day simple moving average is $14.04. The company has a current ratio of 1.89, a quick ratio of 1.36 and a debt-to-equity ratio of 0.01. Dr. Reddy's Laboratories Ltd has a one year low of $12.26 and a one year high of $16.71.

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The company reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.02. The firm had revenue of $988.82 million during the quarter, compared to analysts' expectations of $88.27 billion. Dr. Reddy's Laboratories had a return on equity of 17.25% and a net margin of 16.99%. As a group, research analysts anticipate that Dr. Reddy's Laboratories Ltd will post 0.8 EPS for the current year.

Dr. Reddy's Laboratories Increases Dividend

The company also recently disclosed an annual dividend, which was paid on Wednesday, August 6th. Stockholders of record on Thursday, July 10th were issued a $0.0915 dividend. This is a boost from Dr. Reddy's Laboratories's previous annual dividend of $0.08. This represents a dividend yield of 62.4%. The ex-dividend date of this dividend was Friday, July 25th. Dr. Reddy's Laboratories's dividend payout ratio is currently 10.61%.

About Dr. Reddy's Laboratories

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. The company's Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business.