Doximity (NYSE:DOCS) Shares Gap Up on Strong Earnings

Doximity, Inc. (NYSE:DOCS) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $20.66, but opened at $38.87. Doximity shares last traded at $32.7940, with a volume of 24,559,404 shares changing hands.

The company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.13. The firm had revenue of $156.62 million during the quarter. Doximity had a net margin of 30.40% and a return on equity of 20.40%. Doximity’s revenue was up 7.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.36 EPS.

Key Headlines Impacting Doximity

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, while adjusted earnings of $0.29 per share exceeded the broader consensus estimate of $0.16. The company also raised its fiscal 2027 revenue outlook to $671 million-$681 million, above the $670.4 million analyst forecast. CNBC article
• Positive Sentiment: Management said its AI-powered search tool is generating approximately 10 times more revenue than its operating cost. Analysts believe AI-related revenue is not included in the company’s current forecasts, creating the possibility of upside to guidance if adoption continues. Barron’s article
• Positive Sentiment: The favorable AI economics and potential for an additional growth stream overshadowed concerns about the quarter’s modest growth rate and drove a strong investor reaction despite the mixed earnings comparisons.
• Neutral Sentiment: Doximity forecast second-quarter revenue of $170 million-$171 million, roughly in line with the $171.1 million consensus estimate. The guidance supports steady growth but does not, by itself, represent a major upward surprise.
• Negative Sentiment: Reported earnings declined from $0.36 per share a year earlier, and some data providers characterized the $0.29 result as a slight miss against a $0.30 estimate. Second-quarter revenue guidance also sits marginally below consensus, leaving execution and AI monetization important to the stock’s elevated growth expectations. Zacks article

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Mizuho dropped their price objective on Doximity from $34.00 to $26.00 and set a “neutral” rating for the company in a report on Thursday, May 14th. Leerink Partners decreased their target price on Doximity from $31.00 to $25.00 and set an “outperform” rating for the company in a research report on Thursday, May 14th. KeyCorp cut Doximity from an “overweight” rating to a “sector weight” rating in a research note on Thursday, May 14th. Truist Financial reiterated a “hold” rating and issued a $19.00 price target (down from $29.00) on shares of Doximity in a research report on Thursday, May 14th. Finally, Citigroup lowered shares of Doximity to an “underperform” rating in a research note on Monday, June 29th. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $30.10.

Insider Buying and Selling

In related news, insider Siddharth Sitaram sold 2,444 shares of the firm’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $20.41, for a total transaction of $49,882.04. Following the sale, the insider owned 90,706 shares of the company’s stock, valued at approximately $1,851,309.46. This trade represents a 2.62% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed 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. Insiders own 31.80% of the company’s stock.

Institutional Investors Weigh In On Doximity

A number of hedge funds have recently modified their holdings of DOCS. Vanguard Group Inc. lifted its holdings in shares of Doximity by 4.1% during the 4th quarter. Vanguard Group Inc. now owns 13,285,485 shares of the company’s stock valued at $588,281,000 after purchasing an additional 518,916 shares in the last quarter. UBS Group AG increased its stake in Doximity by 26.5% during the 4th quarter. UBS Group AG now owns 680,260 shares of the company’s stock worth $30,122,000 after purchasing an additional 142,408 shares in the last quarter. Carmignac Gestion increased its stake in Doximity by 127.8% during the 1st quarter. Carmignac Gestion now owns 4,311,997 shares of the company’s stock worth $100,480,000 after purchasing an additional 2,418,971 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in Doximity by 325,436.6% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,298,891 shares of the company’s stock worth $57,515,000 after buying an additional 1,298,492 shares during the period. Finally, Rhenman & Partners Asset Management AB raised its holdings in Doximity by 174.1% during the 4th quarter. Rhenman & Partners Asset Management AB now owns 372,750 shares of the company’s stock worth $16,505,000 after buying an additional 236,750 shares during the period. Institutional investors and hedge funds own 87.19% of the company’s stock.

Doximity Price Performance

The stock’s 50 day simple moving average is $21.16 and its two-hundred day simple moving average is $24.35. The stock has a market cap of $5.80 billion, a P/E ratio of 32.99, a price-to-earnings-growth ratio of 7.85 and a beta of 1.29.

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.