Price Action To Observe: What Next for Dr.Reddy’s Laboratories Ltd (ADR) After Today’s Gap Up?

Price Action To Observe: What Next for Dr.Reddy's Laboratories Ltd (ADR) After Today's Gap Up?

The stock of Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) gapped up by $0.52 today and has $66.85 target or 41.00% above today’s $47.41 share price. The 5 months technical chart setup indicates low risk for the $8.14 billion company. The gap was reported on Oct, 4 by Barchart.com. If the $66.85 price target is reached, the company will be worth $3.34 billion more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 2.13% or $0.99 during the last trading session, hitting $47.41. About 152,733 shares traded hands. Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) has risen 6.18% since March 1, 2016 and is uptrending. It has underperformed by 6.03% the S&P500.

Analysts await Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) to report earnings on November, 3.

Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) Ratings Coverage

Out of 5 analysts covering Dr. Reddy’s (NYSE:RDY), 0 rate it a “Buy”, 3 “Sell”, while 2 “Hold”. This means 0 are positive. Dr. Reddy’s has been the topic of 5 analyst reports since November 10, 2015 according to StockzIntelligence Inc. As per Wednesday, July 27, the company rating was downgraded by Jefferies. The firm has “Neutral” rating given on Tuesday, November 10 by Citigroup. The stock of Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) earned “Reduce” rating by HSBC on Wednesday, July 27. The firm earned “Sell” rating on Wednesday, December 2 by Deutsche Bank. Goldman Sachs initiated the stock with “Neutral” rating in Monday, May 2 report.

According to Zacks Investment Research, “Doctor Reddy’s is an emerging global pharmaceutical company with proven research capabilities. They are vertically integrated with a presence across the pharmaceutical value chain. They produce finished dosage forms, active pharmaceutical ingredients and biotechnology products and market them globally, with focus on India, US, Europe and Russia. They conduct research in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infection”

More news for Dr.Reddy’s Laboratories Ltd (ADR) (NYSE:RDY) were recently published by: Marketwatch.com, which released: “Dr. Reddy’s Laboratories Ltd. ADR” on January 20, 2010. Fool.com‘s article titled: “Dr. Reddy’s Laboratories Ltd (ADR) Is Tanking Today — Here’s Why” and published on July 26, 2016 is yet another important article.

RDY Company Profile

Dr. Reddy’s Laboratories Limited, incorporated on February 24, 1984, is a pharmaceutical firm that is engaged in providing medicines. The Firm operates in three divisions: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The Global Generics segment consists of its business of 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). PSAI segment includes the Company’s business of manufacturing and marketing active pharmaceutical ingredients and intermediates (API) or bulk drugs. Proprietary Products segment focuses on the research, development and manufacture of differentiated formulations and new chemical entities (NCEs). These products fall within the dermatology and neurology therapeutic areas, and are marketed and sold through its subsidiary, Promius Pharma, LLC. Others include the activities of its subsidiary, Aurigene Discovery Technologies Limited, a discovery-stage biotechnology firm developing therapies in the fields of oncology and inflammation.

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