SAN FRANCISCO, CA - Doximity , Inc. (NYSE:DOCS) Director Wampler Kira Scherer has sold shares of the company's stock, according to a recent Form 4 filing with the Securities and Exchange Commission. The transactions, which took place on August 1, 2024, involved the sale of 2,500 shares of Class A Common Stock at an average price of $28.182, totaling approximately $70,455.
The sales were executed automatically under a Rule 10b5-1 trading plan, which was adopted by Scherer on August 24, 2023. This plan allows corporate insiders to establish pre-arranged plans to buy or sell a specified number of shares at a predetermined time. The weighted-average price of the shares sold by Scherer ranged from $27.94 to $28.42 per share.
The SEC filing also revealed that on the same day, Scherer converted an equal number of Class B Common Stock shares to Class A Common Stock. This conversion is in line with Doximity's policy that allows holders of Class B Common Stock to convert their shares into Class A Common Stock at any time.
Following the reported transactions, Scherer's ownership in Doximity stands at 10,258 shares of Class A Common Stock. The filing did not indicate any additional purchases of stock.
Investors often monitor insider buying and selling as it can provide insights into a company's performance and insider perspectives on the stock's value. However, it is important to note that trading activity by insiders can be subject to various motivations and does not necessarily signal a company's future performance.
Doximity, headquartered in San Francisco, California, specializes in computer programming services and is known for its leading digital platform for medical professionals. The company's shares are traded on the New York Stock Exchange under the ticker symbol DOCS.
In other recent news, Doximity Inc (NYSE:DOCS). has outperformed its fourth-quarter revenue guidance, reporting $118 million and a year-on-year growth of 13%, resulting in $475 million for fiscal year 2024. The company's adjusted EBITDA margin was 48%, with $56 million reported in Q4. Doximity also launched a new $500 million share buyback program. For the first quarter of 2025, the company projects revenue between $119.5 million and $120.5 million, and $506 million to $518 million for the full fiscal year.
Wells Fargo downgraded Doximity's shares from Equal Weight to Underweight and reduced the price target to $19.00 due to concerns over the company's growth trajectory. Barclays, on the other hand, maintained an Equalweight rating with a steady price target of $31.00. Truist Securities increased the stock's price target to $31.00 from the previous $29.00, maintaining a Hold rating.
In other company developments, Doximity's recent partnership with Perplexity aims to enhance its platform, potentially increasing its appeal to physicians. These recent developments signify the evolving landscape for Doximity in the healthcare technology sector.
InvestingPro Insights
In light of the recent insider trading activity at Doximity, Inc. (NYSE:DOCS), investors may find additional context from InvestingPro metrics and tips valuable. According to InvestingPro, Doximity has been demonstrating financial strength and growth potential. The company's gross profit margin for the last twelve months as of Q4 2024 stands at an impressive 89.34%, highlighting efficient operations and a strong market position. Additionally, the management's confidence in the company's future is evident as they have been aggressively buying back shares, which can be a positive signal regarding the company's valuation and future performance.
Moreover, Doximity's market capitalization is currently at $5 billion USD, and it holds a Price/Earnings (P/E) ratio of 34.85, which adjusts to 32.2 when looking at the last twelve months as of Q4 2024. This is complemented by a Price/Earnings to Growth (PEG) ratio of 0.96, indicating that the stock may be trading at a reasonable level relative to its near-term earnings growth. It's noteworthy that six analysts have revised their earnings upwards for the upcoming period, which suggests potential optimism about the company's future earnings capacity.
For investors seeking a deeper dive into Doximity's financials and future prospects, there are additional InvestingPro Tips available. In fact, there are 10 more tips listed on InvestingPro that can provide further insights into Doximity's performance and stock valuation. To explore these valuable tips, interested parties can visit https://www.investing.com/pro/DOCS for a comprehensive analysis.
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