Dr. Reddy's Laboratories Ltd $RDY Shares Sold by Causeway Capital Management LLC

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 lessened 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 filing with the Securities & Exchange Commission. The fund 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 quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Wells Fargo & Company MN lifted its stake in shares of Dr. Reddy's Laboratories by 495.6% during the 4th quarter. Wells Fargo & Company MN now owns 7,826 shares of the company's stock worth $124,000 after purchasing an additional 6,512 shares during the period. Invesco Ltd. grew its holdings in Dr. Reddy's Laboratories by 451.6% in the 4th quarter. Invesco Ltd. now owns 203,404 shares of the company's stock valued at $3,212,000 after buying an additional 166,526 shares during the period. Marshall Wace LLP purchased a new stake in Dr. Reddy's Laboratories in the 4th quarter valued at about $213,000. First Trust Advisors LP purchased a new stake in Dr. Reddy's Laboratories in the 4th quarter valued at about $1,002,000. Finally, Dimensional Fund Advisors LP grew its holdings in Dr. Reddy's Laboratories by 405.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 5,361,013 shares of the company's stock valued at $84,643,000 after buying an additional 4,301,212 shares during the period. Institutional investors and hedge funds own 3.85% of the company's stock.

Wall Street Analyst Weigh In

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

Dr. Reddy's Laboratories Trading Down 0.1%

Shares of NYSE:RDY traded down $0.02 during trading on Friday, reaching $14.20. 920,285 shares of the stock were exchanged, compared to its average volume of 1,055,166. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.36 and a current ratio of 1.89. Dr. Reddy's Laboratories Ltd has a 12-month low of $12.26 and a 12-month high of $16.71. The firm has a market cap of $11.85 billion, a price-to-earnings ratio of 21.51, a price-to-earnings-growth ratio of 5.74 and a beta of 0.29. The firm's 50-day moving average price is $14.49 and its 200 day moving average price is $14.04.

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The company reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.02. The business 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%. On average, sell-side analysts anticipate that Dr. Reddy's Laboratories Ltd will post 0.8 earnings per share for the current fiscal year.

Dr. Reddy's Laboratories Increases Dividend

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