Doximity (NASDAQ:DOCS) Shares Gap Down on Analyst Downgrade

Doximity, Inc. (NASDAQ:DOCS)’s stock price gapped down prior to trading on Friday after Wells Fargo & Company lowered their price target on the stock from $55.00 to $45.00. The stock had previously closed at $33.32, but opened at $23.69. Wells Fargo & Company currently has an overweight rating on the stock. Doximity shares last traded at $24.7350, with a volume of 4,463,314 shares trading hands.

Several other research analysts have also recently issued reports on DOCS. Canaccord Genuity Group set a $48.00 price objective on Doximity in a research report on Thursday, January 8th. Barclays began coverage on shares of Doximity in a research note on Monday, December 8th. They set an “overweight” rating and a $63.00 price target on the stock. KeyCorp cut their price target on shares of Doximity from $75.00 to $60.00 and set an “overweight” rating for the company in a report on Thursday, January 8th. Morgan Stanley reduced their price objective on shares of Doximity from $65.00 to $49.00 and set an “overweight” rating for the company in a research note on Friday. Finally, BTIG Research lowered their target price on shares of Doximity from $80.00 to $50.00 and set a “buy” rating on the stock in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $51.39.

Doximity News Summary

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.

Institutional Trading of Doximity

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of Doximity by 4.1% during the 4th 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 in the last quarter. William Blair Investment Management LLC grew its holdings in Doximity by 11.7% during the 3rd quarter. William Blair Investment Management LLC now owns 5,829,169 shares of the company’s stock valued at $426,404,000 after buying an additional 609,775 shares during the last quarter. Capital World Investors increased its position in Doximity by 25.7% during the third quarter. Capital World Investors now owns 5,381,431 shares of the company’s stock worth $393,652,000 after buying an additional 1,101,848 shares in the last quarter. Geode Capital Management LLC increased its position in Doximity by 7.7% during the second quarter. Geode Capital Management LLC now owns 3,639,898 shares of the company’s stock worth $223,829,000 after buying an additional 261,319 shares in the last quarter. Finally, Franklin Resources Inc. raised its holdings in shares of Doximity by 6.2% in the third quarter. Franklin Resources Inc. now owns 3,357,505 shares of the company’s stock worth $245,601,000 after acquiring an additional 194,912 shares during the last quarter. Hedge funds and other institutional investors own 87.19% of the company’s stock.

Doximity Price Performance

The firm has a market capitalization of $5.23 billion, a PE ratio of 27.75, a P/E/G ratio of 4.10 and a beta of 1.39. The company has a 50-day moving average price of $42.69 and a 200-day moving average price of $56.68.

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

Doximity announced that its Board of Directors has approved a share repurchase program on Thursday, February 5th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to purchase up to 8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

About Doximity

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.