Doximity (NYSE:DOCS) Sees Large Volume Increase on Better-Than-Expected Earnings

Doximity, Inc. (NYSE:DOCS) shares saw unusually-strong trading volume on Thursday following a stronger than expected earnings report. 11,636,551 shares changed hands during mid-day 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 (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.13. The company had revenue of $156.62 million during the quarter. Doximity had a net margin of 25.48% and a return on equity of 17.65%. The business’s revenue was up 7.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.36 EPS.

Key Stories 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, 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

Analyst Ratings Changes

A number of equities analysts have commented on DOCS shares. Morgan Stanley reduced their price objective on Doximity from $49.00 to $35.00 and set an “overweight” rating on the stock in a research note on Thursday, May 14th. Truist Financial restated a “hold” rating and issued a $19.00 target price (down from $29.00) on shares of Doximity in a research note on Thursday, May 14th. BTIG Research cut Doximity from a “buy” rating to a “neutral” rating in a report on Thursday, May 14th. Barclays reiterated an “equal weight” rating and set a $20.00 price target (down from $38.00) on shares of Doximity in a research report on Thursday, May 14th. Finally, Robert W. Baird reissued a “neutral” rating and set a $18.00 price objective (down from $40.00) on shares of Doximity in a report on Thursday, May 14th. Two equities 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 company. Based on data from MarketBeat.com, Doximity currently has an average rating of “Hold” and a consensus target price of $31.86.

Insider Activity

In related news, insider Siddharth Sitaram sold 2,444 shares of the firm’s stock in a transaction dated Monday, June 8th. The stock was 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 in the company, valued at $1,851,309.46. This trade represents a 2.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 owned by company insiders.

Hedge Funds Weigh In On Doximity

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

Doximity Stock Performance

The stock has a fifty day simple moving average of $21.28 and a 200-day simple moving average of $24.37. The stock has a market cap of $5.00 billion, a P/E ratio of 32.18, a PEG ratio of 7.50 and a beta of 1.29.

Doximity Company Profile

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.