Stock Repurchase Program Authorized by Doximity (NASDAQ:DOCS) Board

Doximity (NASDAQ:DOCS) announced that its board has approved a share repurchase program on Thursday, February 5th, RTT News reports. The company plans to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

Doximity Trading Down 16.7%

DOCS stock opened at $27.75 on Friday. The firm has a 50 day moving average of $42.69 and a 200-day moving average of $56.69. The firm has a market capitalization of $5.23 billion, a P/E ratio of 27.75, a price-to-earnings-growth ratio of 4.10 and a beta of 1.39. Doximity has a 12 month low of $23.66 and a 12 month high of $85.21.

Doximity (NASDAQ:DOCS) last posted its earnings results on Thursday, February 5th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.01. Doximity had a net margin of 36.60% and a return on equity of 21.75%. During the same period in the previous year, the firm posted $0.45 EPS. The firm’s quarterly revenue was up 9.8% on a year-over-year basis. Sell-side analysts predict that Doximity will post 0.99 EPS for the current year.

Wall Street Analysts Forecast Growth

DOCS has been the subject of several research reports. JPMorgan Chase & Co. raised Doximity from an “underweight” rating to a “neutral” rating and reduced their price objective for the company from $62.00 to $40.00 in a report on Friday. Piper Sandler cut their price target on Doximity from $70.00 to $40.00 and set an “overweight” rating for the company in a research note on Friday. Mizuho set a $45.00 price objective on Doximity in a research note on Wednesday. Wells Fargo & Company dropped their price objective on shares of Doximity from $55.00 to $45.00 and set an “overweight” rating on the stock in a report on Friday. Finally, BTIG Research reduced their target price on shares of Doximity from $80.00 to $50.00 and set a “buy” rating for the company in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $51.39.

Key Headlines Impacting Doximity

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Q3 results beat consensus on both revenue and EPS and the company highlighted record engagement and early AI product adoption — positives for long‑term monetization. Read More.
• Positive Sentiment: Board authorized a $500 million buyback (up to ~8% of shares), which signals management believes the stock is undervalued and should support shares over time. Read More.
• Positive Sentiment: Product recognition: Doximity ranked #1 in KLAS telehealth video platform for the 5th consecutive year — supportive for competitive positioning in telehealth and workflow products. Read More.
• Neutral Sentiment: Several sell‑side firms cut price targets (Truist, BTIG, Needham, Morgan Stanley) but largely kept buy/overweight ratings; JPMorgan moved to neutral with a lower target — analysts remain mixed on near‑term growth while some still see upside. Read More.
• Negative Sentiment: Management lowered FY26 revenue guidance and Q4 revenue guidance came in below Street expectations; guidance cut plus margin compression were cited as the main reasons for the sharp after‑hours decline. Read More.
• Negative Sentiment: Management flagged pharma budget delays and a cautious outlook that could weigh on near‑term revenue cadence; investors reacted to weaker forward visibility. Read More.

Doximity Company Profile

Doximity, Inc, headquartered in San Francisco, California, operates the leading professional medical network for healthcare professionals in the United States. Founded in 2011 by Jeff Tangney and Shari Buck, the company set out to create a secure digital environment where physicians, nurse practitioners and physician assistants can collaborate, share information and stay current with clinical news. Doximity went public in June 2021 and trades on the NASDAQ under the ticker symbol “DOCS.”

The core offering of Doximity is its HIPAA-compliant communication platform, which includes a secure messaging system, digital fax services and telehealth capabilities.