Doximity, Inc. (NYSE:DOCS) Director Timothy S. Cabral has sold a significant number of shares in the company, according to a recent SEC filing. On June 12, 2024, Cabral sold 10,000 shares of Doximity's Class A Common Stock at a price of $30.0 per share, totaling $300,000.
This transaction was executed automatically under a pre-established trading plan known as Rule 10b5-1, which allows company insiders to sell shares at predetermined times to avoid any accusations of insider trading. The plan had been adopted by Cabral earlier in the year on February 15, 2024.
In addition to the sale, the filing indicated that Cabral also converted an equal number of Class B Common Stock shares to Class A shares at no cost on the same date. This conversion is allowed at any time at the holder's discretion, according to company bylaws, and happens automatically upon certain conditions such as a sale, as was the case here.
Cabral's transactions did not stop at sales and conversions. The filing also revealed that on June 12, Cabral exercised options to buy 10,000 shares of Doximity's stock. These options were part of a stock option grant that vests monthly over a period of 36 months, provided Cabral continues his service relationship with the company. The options had been granted on September 2, 2020, with an exercise price of $2.21 per share and are set to expire on September 1, 2030.
Following these transactions, Cabral's direct ownership in the company has been adjusted to 10,258 shares of Class A Common Stock and 468,786 shares of Derivative Securities, which are primarily stock options.
Doximity, headquartered in San Francisco, California, operates in the computer programming services industry and is known for its professional network for physicians and other healthcare professionals. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol DOCS.
In other recent news, Doximity, the healthcare technology firm, outperformed its fourth-quarter revenue guidance, reporting $118 million and a robust 13% year-on-year growth. The company's fiscal year 2024 revenue reached $475 million, with an adjusted EBITDA margin of 48% in Q4, exceeding expectations. To demonstrate its financial health, Doximity announced a $500 million share buyback program and plans to continue investing in AI and commercialization.
The company's future revenue for Q1 2025 is projected to be between $119.5 million and $120.5 million, and for the full fiscal year, it's expected to be between $506 million and $518 million. However, Barclays (LON:BARC) and Truist Securities maintained a neutral stance on the stock, with a price target of $31.00, citing cautious optimism about the company's financial prospects.
These recent developments indicate that Doximity is on a positive trajectory, despite the deceleration in revenue growth in its health systems segment. The company's strategic decisions, such as the share repurchase authorization, demonstrate confidence in its future performance.
InvestingPro Insights
In light of the recent transactions by Doximity, Inc. (NYSE:DOCS) Director Timothy S. Cabral, investors might be interested in the company's financial health and market performance. Doximity is currently demonstrating robust financial metrics, with a gross profit margin of 89.34% for the last twelve months as of Q4 2024, which underscores the company's efficiency in managing its cost of goods sold relative to its revenue.
Moreover, the company has shown a positive trajectory in its market performance, with a 1-month price total return of 25.9%, suggesting a strong recent uptrend in its stock value. This is complemented by the company's significant EBITDA growth of 35.54% during the same period, indicating robust earnings before interest, taxes, depreciation, and amortization, which can be a useful indicator of the company's financial performance.
Investors considering Doximity as part of their portfolio may find the following InvestingPro Tips particularly insightful: Management's active share buyback program indicates confidence in the company's value, while the company's cash reserves exceeding its debt levels suggest a strong balance sheet. Additionally, there are more InvestingPro Tips available, including six analysts revising their earnings upwards for the upcoming period and the company's impressive financial ratios. To explore these insights further, visit https://www.investing.com/pro/DOCS, and remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
It's noteworthy that Doximity does not pay dividends, which could be a strategic decision to reinvest earnings back into the company for growth or to support its share repurchase initiatives. With these factors in mind, investors can make more informed decisions regarding their interest in Doximity's stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.