Assenagon Asset Management S.A. has significantly trimmed its holdings in Dr. Reddy’s Laboratories by over 56% in the second quarter, as the Indian drugmaker faces cautious analyst sentiment and diverse institutional activity, reflecting increased investor caution amid recent earnings and stock performance challenges.
Assenagon Asset Management S.A. cut its stake in Dr. Reddy’s Laboratories by 56.6% in the second quarter, selling 77,617 shares and leaving it with 59,403 shares worth about $861,000, according to a filing tracked by HoldingsChannel and MarketBeat. The move comes as institutional ownership in the Indian drugmaker remains relatively modest overall, at 3.85% of outstanding stock, even as several other investors adjusted positions during the same period.
Among recent shifts, Aikya Investment Management raised its holding in the company, while Royal Bank of Canada and Bessemer Group also increased their positions, according to MarketBeat. B. Metzler seel. Sohn & Co. AG sharply expanded its stake, and Arrowstreet Capital opened a new position in the first quarter. Separate shareholding data published by Upstox shows that promoters held 26.64% of Dr. Reddy’s shares as of July 28, with foreign institutional investors owning 32.07% and mutual funds 13.16%.
The stock closed at $12.29 on Friday, near the lower end of its 12-month range of $11.36 to $15.67. Dr. Reddy’s most recent earnings report, released on July 23, showed profit of 6 cents a share, below Wall Street’s expectation of 9 cents, even as revenue came in broadly in line with forecasts at $850.26 million. Analysts have also turned more cautious: Goldman Sachs downgraded the stock to sell, Weiss Ratings cut it to hold (c-), and Wall Street Zen lowered its view to sell. On that basis, MarketBeat says the consensus rating is Reduce.
Founded in 1984, Dr. Reddy’s Laboratories is a multinational pharmaceutical company based in India, with operations spanning generic and proprietary medicines, active pharmaceutical ingredients, biosimilars and custom research and manufacturing services. Its product base covers areas including oncology, cardiovascular care, dermatology, gastroenterology and pain management.
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