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

Doximity, Inc. (NASDAQ:DOCS)’s stock price gapped down before the market opened on Friday after Morgan Stanley lowered their price target on the stock from $65.00 to $49.00. The stock had previously closed at $33.32, but opened at $23.69. Morgan Stanley 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. Raymond James Financial reissued a “strong-buy” rating on shares of Doximity in a research report on Monday, December 29th. BMO Capital Markets initiated coverage on shares of Doximity in a report on Thursday, November 13th. They set a “market perform” rating and a $55.00 price objective for the company. Canaccord Genuity Group set a $48.00 target price on shares of Doximity in a research note on Thursday, January 8th. Barclays began coverage on shares of Doximity in a report on Monday, December 8th. They issued an “overweight” rating and a $63.00 target price on the stock. Finally, Needham & Company LLC reduced their price objective on Doximity from $75.00 to $55.00 and set a “buy” rating on the stock in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, Doximity has a consensus rating of “Moderate Buy” and an average target price of $55.37.

Key Headlines Impacting Doximity

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Board authorized a $500 million buyback (up to ~8% of shares), a clear signal management views the stock as undervalued and a direct source of support for the equity. RTT News
• Positive Sentiment: Q3 results: EPS slightly beat (reported $0.46 vs. ~ $0.45 consensus) and revenue grew ~9.8% YoY with strong margins and engagement metrics (record workflow monthly users and early traction for AI products). These fundamentals help support longer‑term thesis. BusinessWire
• Positive Sentiment: JPMorgan upgraded DOCS from underweight to neutral and set a $40 target, reflecting some stabilization in sell‑side sentiment. Finviz
• Neutral Sentiment: Industry recognition: Doximity ranked #1 in KLAS telehealth video platform for the fifth consecutive year — positive credibility but limited immediate market impact. 01net
• Neutral Sentiment: Earnings call transcript published for deeper read of management commentary and metrics — useful for investors parsing guidance drivers. Seeking Alpha
• Negative Sentiment: Management issued Q4 and FY revenue guidance below Street expectations (Q4 ~$143–144M vs. ~$150M consensus; FY ~$642.5–643.5M vs. ~$645M consensus), which was the primary catalyst for the after‑hours selloff. BusinessWire Benzinga
• Negative Sentiment: Multiple firms sharply lowered price targets (Truist $62→$37, BTIG $80→$50, Needham $75→$55, Morgan Stanley $65→$49) despite many keeping buy/overweight ratings — signals reduced near‑term conviction and pressure on sentiment. Benzinga The Fly TickerReport
• Negative Sentiment: After‑hours headlines and coverage flagged a steep post‑earnings drop (multiple outlets reported large declines), which can amplify intraday selling pressure and volatility. Benzinga MSN

Institutional Trading of Doximity

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DOCS. Whittier Trust Co. of Nevada Inc. increased its stake in Doximity by 59.5% in the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 480 shares of the company’s stock valued at $35,000 after purchasing an additional 179 shares in the last quarter. Louisiana State Employees Retirement System increased its stake in Doximity by 0.5% during the 2nd quarter. Louisiana State Employees Retirement System now owns 37,600 shares of the company’s stock worth $2,306,000 after buying an additional 200 shares during the period. Oregon Public Employees Retirement Fund boosted its position in Doximity by 0.7% in the 3rd quarter. Oregon Public Employees Retirement Fund now owns 27,500 shares of the company’s stock valued at $2,012,000 after buying an additional 200 shares during the last quarter. Fairvoy Private Wealth LLC grew its stake in shares of Doximity by 1.1% during the third quarter. Fairvoy Private Wealth LLC now owns 19,253 shares of the company’s stock valued at $1,408,000 after acquiring an additional 206 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Doximity by 0.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 38,978 shares of the company’s stock worth $2,262,000 after purchasing an additional 210 shares during the last quarter. Hedge funds and other institutional investors own 87.19% of the company’s stock.

Doximity Price Performance

The company has a fifty day moving average of $43.16 and a two-hundred day moving average of $56.92. The stock has a market capitalization of $4.65 billion, a P/E ratio of 24.88, a price-to-earnings-growth 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 EPS for the quarter, beating 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 last year, the business earned $0.45 EPS. Doximity’s quarterly revenue was up 9.8% compared to the same quarter last year. As a group, equities research analysts predict that Doximity, Inc. will post 0.99 EPS for the current fiscal year.

Doximity announced that its Board of Directors has authorized a share repurchase plan on Thursday, February 5th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 8% of its stock through open market purchases. Stock repurchase plans are typically a sign 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.