Dr. Reddy’s Laboratories (NYSE:RDY) Stock Jumps 4.8% After Strong Earnings

Dr. Reddy’s Laboratories Ltd (NYSE:RDY)’s share price traded up 4.8% during mid-day trading on Monday following a better than expected earnings announcement. The company traded as high as $13.80 and last traded at $13.8420. Approximately 731,928 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 2,521,505 shares. The stock had previously closed at $13.21.

The company reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.02. Dr. Reddy’s Laboratories had a net margin of 8.56% and a return on equity of 7.89%. The company had revenue of $903.89 million during the quarter, compared to the consensus estimate of $894.94 million.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Citigroup upgraded Dr. Reddy’s Laboratories from a “sell” rating to a “buy” rating and increased their target price for the company from $1,040.00 to $1,450.00 in a research note on Tuesday, September 29th. JPMorgan Chase & Co. raised shares of Dr. Reddy’s Laboratories from an “underweight” rating to a “neutral” rating in a report on Monday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Dr. Reddy’s Laboratories in a research note on Wednesday. BNP Paribas Exane upgraded shares of Dr. Reddy’s Laboratories to an “outperform” rating and set a $14.80 price objective on the stock in a research note on Monday, October 12th. Finally, Jefferies Financial Group raised shares of Dr. Reddy’s Laboratories from an “underperform” rating to a “hold” rating and set a $13.90 price objective for the company in a report on Sunday. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $492.90.

Hedge Funds Weigh In On Dr. Reddy’s Laboratories

Several hedge funds and other institutional investors have recently made changes to their positions in RDY. Royal Bank of Canada boosted its position in shares of Dr. Reddy’s Laboratories by 4.6% in the 1st quarter. Royal Bank of Canada now owns 9,984,082 shares of the company’s stock valued at $138,293,000 after purchasing an additional 434,805 shares during the period. Bessemer Group Inc. raised its stake in shares of Dr. Reddy’s Laboratories by 28.4% during the 1st quarter. Bessemer Group Inc. now owns 1,823,285 shares of the company’s stock worth $25,253,000 after purchasing an additional 403,219 shares in the last quarter. Quantinno Capital Management LP grew its stake in shares of Dr. Reddy’s Laboratories by 71.2% in the 1st quarter. Quantinno Capital Management LP now owns 637,094 shares of the company’s stock valued at $8,824,000 after buying an additional 264,856 shares in the last quarter. B. Metzler seel. Sohn & Co. AG increased its holdings in Dr. Reddy’s Laboratories by 18.9% in the second quarter. B. Metzler seel. Sohn & Co. AG now owns 434,529 shares of the company’s stock worth $6,296,000 after buying an additional 69,044 shares during the last quarter. Finally, Sei Investments Co. increased its holdings in Dr. Reddy’s Laboratories by 79.3% in the first quarter. Sei Investments Co. now owns 436,731 shares of the company’s stock worth $6,049,000 after buying an additional 193,174 shares during the last quarter. 3.85% of the stock is currently owned by institutional investors and hedge funds.

Dr. Reddy’s Laboratories Stock Up 4.6%

The stock has a market cap of $11.53 billion, a price-to-earnings ratio of 37.30, a P/E/G ratio of 2.75 and a beta of 0.29. The business has a fifty day moving average of $12.35 and a 200 day moving average of $12.91. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.90 and a quick ratio of 1.39.

About Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories Limited is a global pharmaceutical company headquartered in Hyderabad, India. Founded in 1984 by Dr. Kallam Anji Reddy, the company develops, manufactures and markets medicines intended to make healthcare more accessible.

Its business includes generic prescription drugs, active pharmaceutical ingredients, biosimilars, specialty products and over-the-counter consumer healthcare products. Dr. Reddy’s offers medicines across therapeutic areas such as cardiovascular care, diabetes, oncology, gastrointestinal health, pain management and dermatology.

The company serves patients and healthcare providers in India, the United States, Europe and a range of other international markets, including emerging markets.