Dr. Reddy’s Laboratories (NYSE:RDY) Hits New 12-Month Low After Earnings Miss

Shares of Dr. Reddy’s Laboratories Ltd (NYSE:RDY) reached a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $12.19 and last traded at $11.9350, with a volume of 5648 shares changing hands. The stock had previously closed at $12.56.

The company reported $0.06 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.03). The company had revenue of $850.26 million for the quarter, compared to analyst estimates of $850.56 million. Dr. Reddy’s Laboratories had a return on equity of 9.48% and a net margin of 10.15%.

Key Stories Impacting Dr. Reddy’s Laboratories

Here are the key news stories impacting Dr. Reddy’s Laboratories this week:

• Negative Sentiment: Dr. Reddy’s fiscal first-quarter earnings and revenue came in below estimates, with weaker North America generics sales weighing on results and contributing to the selloff. Dr. Reddy’s Q1 Earnings and Revenues Miss Estimates, Stock Down
• Negative Sentiment: Reuters reported that quarterly profit slumped more than expected, as muted sales of a key generic oncology drug and pricing pressure in the U.S. market hurt profitability. Indian drugmaker Dr Reddy’s posts quarterly profit slump
• Negative Sentiment: Investor sentiment was also hurt by reports of a semaglutide setback and concerns that potential U.S. tariff threats could add further pressure to future earnings. Why Dr. Reddy’s sank: Profit plunge, semaglutide setback and Trump’s tariff threat

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. The Goldman Sachs Group cut Dr. Reddy’s Laboratories from a “neutral” rating to a “sell” rating in a research report on Thursday, April 23rd. Weiss Ratings lowered Dr. Reddy’s Laboratories from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 11th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce”.

Institutional Investors Weigh In On Dr. Reddy’s Laboratories

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. lifted its holdings in Dr. Reddy’s Laboratories by 67.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,047 shares of the company’s stock valued at $29,000 after purchasing an additional 821 shares in the last quarter. Russell Investments Group Ltd. raised its position in shares of Dr. Reddy’s Laboratories by 803.8% during the 4th quarter. Russell Investments Group Ltd. now owns 3,091 shares of the company’s stock worth $43,000 after purchasing an additional 2,749 shares during the last quarter. Larson Financial Group LLC raised its position in shares of Dr. Reddy’s Laboratories by 81.5% during the 4th quarter. Larson Financial Group LLC now owns 3,173 shares of the company’s stock worth $45,000 after purchasing an additional 1,425 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in Dr. Reddy’s Laboratories by 71.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,100 shares of the company’s stock valued at $47,000 after buying an additional 1,294 shares in the last quarter. Finally, Public Employees Retirement System of Ohio acquired a new stake in Dr. Reddy’s Laboratories in the 4th quarter worth about $66,000. Hedge funds and other institutional investors own 3.85% of the company’s stock.

Dr. Reddy’s Laboratories Trading Up 3.9%

The company has a 50 day simple moving average of $13.53 and a 200 day simple moving average of $13.65. The company has a market capitalization of $9.87 billion, a PE ratio of 26.88, a price-to-earnings-growth ratio of 1.75 and a beta of 0.25. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.34 and a current ratio of 1.80.

About Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories Ltd. is an India‐based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company’s core activities include the development and commercialization of cost‐effective generic treatments for branded drugs that have lost patent protection, along with in‐house research into innovative molecule development.