Goldman Sachs Group Inc. Decreases Position in Dr. Reddy's Laboratories Ltd $RDY

Key Points

• Goldman Sachs Group Inc. has significantly reduced its stock position in Dr. Reddy's Laboratories by 82%, now holding only 220,173 shares after selling over 1 million shares during the first quarter.
• HSBC has upgraded Dr. Reddy's Laboratories from a "hold" rating to a "buy" rating and raised its target price from $14.44 to $16.90, indicating positive sentiment from analysts.
• Dr. Reddy's Laboratories increased its annual dividend to $0.0915 per share, reflecting a boost from the previous dividend amount and a yield of 62.4%.

Goldman Sachs Group Inc. lessened its holdings in shares of Dr. Reddy's Laboratories Ltd (NYSE:RDY - Free Report) by 82.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 220,173 shares of the company's stock after selling 1,001,652 shares during the period. Goldman Sachs Group Inc.'s holdings in Dr. Reddy's Laboratories were worth $2,904,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. National Bank of Canada FI boosted its holdings in shares of Dr. Reddy's Laboratories by 331.2% in the first quarter. National Bank of Canada FI now owns 71,000 shares of the company's stock valued at $936,000 after purchasing an additional 54,536 shares during the period. Bessemer Group Inc. lifted its holdings in Dr. Reddy's Laboratories by 10.3% during the first quarter. Bessemer Group Inc. now owns 863,880 shares of the company's stock worth $11,395,000 after buying an additional 81,024 shares during the period. Jump Financial LLC lifted its holdings in Dr. Reddy's Laboratories by 534.1% during the first quarter. Jump Financial LLC now owns 147,111 shares of the company's stock worth $1,940,000 after buying an additional 123,911 shares during the period. GAMMA Investing LLC increased its position in shares of Dr. Reddy's Laboratories by 971.5% during the first quarter. GAMMA Investing LLC now owns 72,848 shares of the company's stock worth $961,000 after purchasing an additional 66,049 shares in the last quarter. Finally, Two Sigma Advisers LP increased its position in shares of Dr. Reddy's Laboratories by 254.8% during the fourth quarter. Two Sigma Advisers LP now owns 33,000 shares of the company's stock worth $521,000 after purchasing an additional 23,700 shares in the last quarter. Hedge funds and other institutional investors own 3.85% of the company's stock.

Dr. Reddy's Laboratories Stock Performance

RDY traded up $0.03 during midday trading on Friday, hitting $14.86. 922,413 shares of the company were exchanged, compared to its average volume of 749,900. The company's 50 day simple moving average is $14.34 and its 200 day simple moving average is $14.17. The firm has a market capitalization of $12.41 billion, a price-to-earnings ratio of 22.52, a price-to-earnings-growth ratio of 6.01 and a beta of 0.32. 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 1-year low of $12.26 and a 1-year high of $16.19.

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.02. The company had revenue of $988.82 million for the quarter, compared to the consensus estimate 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, sell-side analysts predict that Dr. Reddy's Laboratories Ltd will post 0.8 earnings per share for the current year.

Dr. Reddy's Laboratories Increases Dividend

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

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on RDY shares. HSBC raised 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 research report on Thursday, June 5th. Hsbc Global Res raised Dr. Reddy's Laboratories from a "hold" rating to a "strong-buy" rating in a research report on Thursday, June 5th. Finally, Zacks Research raised Dr. Reddy's Laboratories from a "strong sell" rating to a "hold" rating in a research report on Friday, August 15th. One investment 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's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $16.95.

Dr. Reddy's Laboratories Profile

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.