SAN FRANCISCO—Kira Scherer Wampler, a director at Doximity, Inc. (NYSE:DOCS), reported the sale of 2,500 shares of Class A Common Stock on November 1, according to a recent SEC filing. The shares were sold at an average price of $42 each, amounting to a total transaction value of $105,000.
The transaction was executed under a Rule 10b5-1 trading plan, which was adopted by Wampler on August 24, 2023, allowing for predetermined trades to occur automatically.
Following the sale, Wampler's direct ownership of Doximity shares stands at 16,618. Additionally, the filing detailed a conversion of Class B Common Stock into Class A Common Stock, reflecting a common practice for holders of convertible shares.
Doximity, headquartered in San Francisco, is a technology company that provides a professional network for healthcare professionals.
In other recent news, Doximity has been the subject of multiple analyst adjustments. Barclays upgraded Doximity shares to Overweight, increasing the price target to $52.00 from $35.00, citing potential growth from the company's shift into self-service advertising sales and stabilization in the end market. BofA Securities and Jefferies also raised their price targets for Doximity to $45 and $43 respectively, with Jefferies maintaining a Buy rating. BofA's adjustment came after a survey reflected an uptick in advertising spend, while Jefferies highlighted the success of new product introductions and the Client Portal.
Canaccord Genuity also maintained a Buy rating, increasing its price target to $40 from $37, expressing confidence in Doximity's new Portal offering's potential impact on long-term growth. Truist Securities, meanwhile, increased its FY25 revenue estimate for Doximity to $522.8 million.
In other developments, Doximity recently re-elected two directors and ratified Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year ending March 31, 2025. These are the recent developments from Doximity, reflecting the company's strategic moves and the market's response.
InvestingPro Insights
Doximity's recent stock performance and financial metrics provide additional context to the insider sale reported by director Kira Scherer Wampler. According to InvestingPro data, Doximity's stock has shown remarkable strength, with a 93.2% price total return over the past year and a 75.8% return over the last six months. This upward trajectory has brought the stock price to 93.29% of its 52-week high, trading at $42.35 as of the last close.
The company's financial health appears robust, with InvestingPro Tips highlighting that Doximity holds more cash than debt on its balance sheet and boasts impressive gross profit margins. Indeed, the gross profit margin stands at a substantial 89.65% for the last twelve months as of Q1 2023, underscoring the company's efficient operations and strong market position in the healthcare professional network space.
However, investors should note that Doximity is trading at a high earnings multiple, with a P/E ratio of 49.25. This valuation suggests that the market has high growth expectations for the company, which is supported by its revenue growth of 12.99% over the last twelve months.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Doximity, providing a more comprehensive view of the company's financial position and market performance.
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