Zacks Investment Research upgraded shares of Dr. Reddy’s Laboratories Ltd (NYSE:RDY) from a strong sell rating to a hold rating in a research note issued to investors on Friday.
According to Zacks, “Dr. Reddy’s enjoys a strong position in the generics market. The company is also working with Merck Serono to develop and commercialize a portfolio of biosimilar compounds in oncology, primarily focused on MAbs. Dr. Reddy’s efforts to create a strong position in the biosimilar market are laudable. However, Dr. Reddy’s top-line is under pressure due to continuous price increases, plus supply constraints impacting the North America Generics business. Sales are declining in North America mainly due to stiff competition for valganciclovir, decitabine and azacitidine, coupled with discontinuation of the McNeil business. Sales of these two products are expected to suffer by competition in the coming quarters. The company also faces a fierce rivalry by other generic players. Shares of the company have underperformed the Zacks categorized Medical Generics Drugs industry year to date.”
Separately, Deutsche Bank AG upgraded shares of Dr. Reddy’s Laboratories from a sell rating to a hold rating in a research report on Monday, May 15th. Three research analysts have rated the stock with a sell rating and two have assigned a hold rating to the company’s stock. The stock currently has a consensus rating of Sell and a consensus price target of $41.90.
Shares of Dr. Reddy’s Laboratories (NYSE:RDY) traded up 0.50% on Friday, reaching $41.88. 344,504 shares of the company’s stock traded hands. The firm has a market capitalization of $6.94 billion, a price-to-earnings ratio of 37.66 and a beta of 0.35. Dr. Reddy’s Laboratories has a 52 week low of $37.03 and a 52 week high of $54.58. The company has a 50 day moving average price of $40.51 and a 200 day moving average price of $42.25.
The business also recently declared a dividend, which was paid on Monday, July 17th. Shareholders of record on Monday, July 17th were given a dividend of $0.29 per share. The ex-dividend date was Thursday, July 13th. Dr. Reddy’s Laboratories’s dividend payout ratio (DPR) is 26.61%.
Hedge funds have recently added to or reduced their stakes in the company. Allianz Asset Management AG increased its stake in Dr. Reddy’s Laboratories by 26.3% in the fourth quarter. Allianz Asset Management AG now owns 25,812 shares of the company’s stock worth $1,168,000 after buying an additional 5,368 shares during the period. Sei Investments Co. increased its stake in Dr. Reddy’s Laboratories by 6.0% in the first quarter. Sei Investments Co. now owns 164,816 shares of the company’s stock worth $6,617,000 after buying an additional 9,400 shares during the period. Comerica Bank increased its stake in Dr. Reddy’s Laboratories by 9.0% in the fourth quarter. Comerica Bank now owns 9,802 shares of the company’s stock worth $427,000 after buying an additional 806 shares during the period. Karp Capital Management Corp bought a new stake in Dr. Reddy’s Laboratories during the first quarter worth approximately $5,893,000. Finally, Russell Investments Group Ltd. bought a new stake in Dr. Reddy’s Laboratories during the fourth quarter worth approximately $1,228,000. Institutional investors own 15.20% of the company’s stock.
About Dr. Reddy’s Laboratories
Dr. Reddy’s Laboratories Limited is a pharmaceutical company that is engaged in providing medicines. The Company operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The Global Generics segment includes manufacturing and marketing prescription and over-the-counter finished pharmaceutical products ready for consumption by the patient, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics).
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