Doximity (NYSE:DOCS) Sees Unusually-High Trading Volume on Strong Earnings

Shares of Doximity, Inc. (NYSE:DOCS) saw an uptick in trading volume on Thursday after the company announced better than expected quarterly earnings. Approximately 11,636,551 shares were traded during trading, an increase of 213% from the previous session’s volume of 3,719,476 shares.The stock last traded at $20.4110 and had previously closed at $21.63.

The company reported $0.29 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.13. Doximity had a return on equity of 17.65% and a net margin of 25.48%.The business had revenue of $156.62 million during the quarter. During the same period last year, the firm posted $0.36 EPS. Doximity’s quarterly revenue was up 7.3% compared to the same quarter last year.

Doximity News Roundup

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Doximity reported fiscal Q1 revenue of $156.6 million, up 7.3% year over year, and adjusted earnings of $0.29 per share. Revenue exceeded expectations, while the company’s profitability and 30.4% net margin remained notable. Doximity earnings report
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $671 million-$681 million, slightly above the analyst consensus of $670.4 million. The outlook reflects anticipated demand from pharmaceutical customers and continued adoption of Doximity’s AI capabilities. Doximity Q1 earnings and guidance
• Positive Sentiment: The CEO said Doximity’s clinical AI search generates roughly 10 times more revenue than it costs to operate, while AI-driven engagement is outperforming expectations. Investors view this as a potential source of future monetization that is not fully reflected in current forecasts. CNBC Doximity AI report
• Positive Sentiment: Analysts raised their targets: Piper Sandler maintained an overweight rating and lifted its target to $47 from $42, while JPMorgan raised its target to $31 from $26 but retained a neutral rating. Analyst target changes
• Neutral Sentiment: Doximity’s addition or reclassification within the Russell 1000 may broaden institutional visibility and affect index-related trading, but it does not directly change the company’s fundamentals. Russell 1000 reclassification
• Negative Sentiment: Adjusted earnings fell from $0.36 per share a year earlier, and some estimates showed a slight earnings miss. Higher AI investment is pressuring margins, while critics argue the rally may have moved ahead of near-term fundamentals and could reverse. Doximity rally analysis

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Wells Fargo & Company reiterated an “equal weight” rating and set a $18.00 price target (down from $32.00) on shares of Doximity in a research report on Thursday, May 14th. Canaccord Genuity Group set a $36.00 target price on Doximity in a research note on Friday. JPMorgan Chase & Co. lifted their target price on shares of Doximity from $26.00 to $31.00 and gave the company a “neutral” rating in a report on Friday. Mizuho reduced their price target on shares of Doximity from $34.00 to $26.00 and set a “neutral” rating on the stock in a research report on Thursday, May 14th. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $47.00 target price (up from $42.00) on shares of Doximity in a report on Friday. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $31.86.

Insider Buying and Selling at Doximity

In other news, insider Siddharth Sitaram sold 2,444 shares of Doximity stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $20.41, for a total value of $49,882.04. Following the transaction, the insider owned 90,706 shares of the company’s stock, valued at $1,851,309.46. The trade was a 2.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 31.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Doximity

Several hedge funds and other institutional investors have recently bought and sold shares of DOCS. Northwestern Mutual Wealth Management Co. increased its stake in Doximity by 99.5% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 796 shares of the company’s stock valued at $35,000 after buying an additional 397 shares during the last quarter. Parallel Advisors LLC increased its stake in shares of Doximity by 111.0% in the first quarter. Parallel Advisors LLC now owns 2,560 shares of the company’s stock valued at $60,000 after buying an additional 1,347 shares during the period. EverSource Wealth Advisors LLC boosted its position in Doximity by 937.7% during the first quarter. EverSource Wealth Advisors LLC now owns 2,833 shares of the company’s stock valued at $66,000 after acquiring an additional 2,560 shares during the last quarter. Farther Finance Advisors LLC increased its holdings in Doximity by 35.7% in the fourth quarter. Farther Finance Advisors LLC now owns 1,539 shares of the company’s stock worth $68,000 after purchasing an additional 405 shares in the last quarter. Finally, Leonteq Securities AG boosted its position in shares of Doximity by 65.6% during the 1st quarter. Leonteq Securities AG now owns 2,912 shares of the company’s stock worth $68,000 after purchasing an additional 1,154 shares in the last quarter. 87.19% of the stock is currently owned by institutional investors and hedge funds.

Doximity Trading Up 32.4%

The firm has a market cap of $5.00 billion, a price-to-earnings ratio of 32.18, a P/E/G ratio of 7.50 and a beta of 1.29. The firm’s 50-day moving average is $21.28 and its 200-day moving average is $24.37.

About Doximity

Doximity, trading as DOCS, operates a digital professional network and communications platform designed primarily for clinicians. Headquartered in San Francisco, the company connects physicians, nurse practitioners, physician assistants and other healthcare professionals, providing tools that streamline clinical communication, telehealth delivery and access to specialty-specific medical information. Its platform is positioned as a professional hub where clinicians manage their workflows, stay current with medical news and collaborate securely with peers.

The company’s offerings include secure messaging and video telehealth capabilities that enable clinicians to consult with patients and colleagues while protecting patient information.