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

Doximity, Inc. (NASDAQ:DOCS) shares gapped down before the market opened 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.

A number of other equities analysts also recently weighed in on DOCS. Mizuho set a $45.00 target price on shares of Doximity in a report on Wednesday. KeyCorp decreased their price objective on shares of Doximity from $75.00 to $60.00 and set an “overweight” rating for the company in a research report on Thursday, January 8th. The Goldman Sachs Group upgraded shares of Doximity from a “neutral” rating to a “buy” rating and set a $49.00 price objective on the stock in a research note on Friday, January 9th. Royal Bank Of Canada began coverage on shares of Doximity in a research note on Thursday, January 8th. They issued an “outperform” rating and a $59.00 target price for the company. Finally, JPMorgan Chase & Co. upgraded Doximity from an “underweight” rating to a “neutral” rating and reduced their price target for the stock from $62.00 to $40.00 in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $51.39.

Trending Headlines about 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.

Institutional Investors Weigh In On Doximity

Hedge funds and other institutional investors have recently modified their holdings of the company. Voya Investment Management LLC grew its stake in shares of Doximity by 932.8% in the third quarter. Voya Investment Management LLC now owns 1,567,668 shares of the company’s stock valued at $114,267,000 after acquiring an additional 1,415,882 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Doximity by 325,436.6% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,298,891 shares of the company’s stock worth $57,515,000 after purchasing an additional 1,298,492 shares in the last quarter. Franklin Resources Inc. boosted its holdings in Doximity by 53.9% in the 2nd quarter. Franklin Resources Inc. now owns 3,162,593 shares of the company’s stock valued at $193,993,000 after purchasing an additional 1,108,162 shares during the period. Capital World Investors grew its position in shares of Doximity by 25.7% during the 3rd quarter. Capital World Investors now owns 5,381,431 shares of the company’s stock worth $393,652,000 after purchasing an additional 1,101,848 shares in the last quarter. Finally, Victory Capital Management Inc. grew its position in shares of Doximity by 525.3% during the 3rd quarter. Victory Capital Management Inc. now owns 1,096,965 shares of the company’s stock worth $80,243,000 after purchasing an additional 921,533 shares in the last quarter. Institutional investors and hedge funds own 87.19% of the company’s stock.

Doximity Stock Down 16.7%

The company’s fifty day moving average price is $42.69 and its 200 day moving average price is $56.69. The company has a market capitalization of $5.23 billion, a P/E ratio of 27.75, a PEG ratio of 4.10 and a beta of 1.39.

Doximity (NASDAQ:DOCS) last issued its quarterly earnings results on Thursday, February 5th. The company reported $0.46 earnings per share (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%.During the same quarter in the prior year, the company earned $0.45 EPS. The firm’s revenue for the quarter was up 9.8% on a year-over-year basis. Research analysts predict that Doximity, Inc. will post 0.99 earnings per share for the current fiscal year.

Doximity announced that its board has authorized a share repurchase plan on Thursday, February 5th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to repurchase up to 8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board 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.