Doximity (NASDAQ:DOCS) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Doximity reported quarterly earnings of $0.36 per share, surpassing analysts' expectations of $0.31, and saw a 15.2% increase in revenue year-over-year.
• Shares of Doximity gapped up from a previous closing price of $58.55 to an opening price of $63.01, reflecting positive market response to the earnings report.
• The stock currently has a consensus rating of "Moderate Buy" among analysts, with a target price averaging $65.68 as several brokerages have upgraded their ratings.

Doximity, Inc. (NASDAQ:DOCS - Get Free Report) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $58.55, but opened at $63.01. Doximity shares last traded at $65.97, with a volume of 735,878 shares traded.

The company reported $0.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.05. Doximity had a return on equity of 21.75% and a net margin of 36.60%. Doximity's revenue was up 15.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.28 EPS.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on DOCS. Robert W. Baird dropped their target price on Doximity from $87.00 to $65.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 20th. Needham & Company LLC upped their target price on Doximity from $67.00 to $75.00 and gave the company a "buy" rating in a research report on Friday. Morgan Stanley reduced their target price on Doximity from $71.00 to $60.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 24th. Canaccord Genuity Group upped their target price on Doximity from $50.00 to $59.00 and gave the company a "hold" rating in a research report on Friday. Finally, JPMorgan Chase & Co. reduced their target price on Doximity from $63.00 to $60.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 27th. Ten research analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, Doximity presently has a consensus rating of "Moderate Buy" and an average target price of $66.68.

Insider Buying and Selling at Doximity

In other Doximity news, Director Timothy S. Cabral sold 10,000 shares of Doximity stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $60.00, for a total transaction of $600,000.00. Following the completion of the transaction, the director owned 6,360 shares in the company, valued at approximately $381,600. This trade represents a 61.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Kira Scherer Wampler sold 2,000 shares of Doximity stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $57.09, for a total value of $114,180.00. Following the transaction, the director owned 16,618 shares of the company's stock, valued at $948,721.62. The trade was a 10.74% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 31,000 shares of company stock worth $1,825,940. Insiders own 31.30% of the company's stock.

Hedge Funds Weigh In On Doximity

Institutional investors and hedge funds have recently modified their holdings of the business. Ballentine Partners LLC purchased a new position in shares of Doximity in the 1st quarter valued at about $201,000. Wealth Enhancement Advisory Services LLC increased its stake in shares of Doximity by 196.6% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 13,570 shares of the company's stock valued at $787,000 after purchasing an additional 8,995 shares in the last quarter. Range Financial Group LLC purchased a new position in shares of Doximity in the 1st quarter valued at about $916,000. New York State Teachers Retirement System increased its stake in shares of Doximity by 10.9% in the 1st quarter. New York State Teachers Retirement System now owns 113,145 shares of the company's stock valued at $6,566,000 after purchasing an additional 11,078 shares in the last quarter. Finally, Wells Fargo & Company MN increased its stake in shares of Doximity by 3.3% in the 4th quarter. Wells Fargo & Company MN now owns 368,941 shares of the company's stock valued at $19,698,000 after purchasing an additional 11,811 shares in the last quarter. Hedge funds and other institutional investors own 87.19% of the company's stock.

Doximity Stock Performance

The company has a 50 day moving average of $59.21 and a two-hundred day moving average of $60.03. The stock has a market cap of $12.53 billion, a PE ratio of 66.71, a price-to-earnings-growth ratio of 4.10 and a beta of 1.36.

Doximity Company Profile

Doximity, Inc operates a cloud-based digital platform for medical professionals in the United States. The company's platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with the latest medical news and research, and manage their careers.