Doximity's (DOCS) "Buy" Rating Reaffirmed at Needham & Company LLC

Key Points

• Needham reaffirmed its Buy rating on Doximity and set a $41 price target, implying about 23% upside from the prior close.
• Analyst views are mixed overall: MarketBeat reports a consensus rating of Hold and an average price target of $30.73.
• Doximity’s latest fiscal Q2 results beat estimates, and its revenue outlook for Q3 and FY2027 was ahead of analyst expectations; however, year-over-year revenue growth was modest at 3.6%.

Doximity (NYSE:DOCS - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at Needham & Company LLC in a research note issued to investors on Friday, Benzinga reports. They currently have a $41.00 price target on the stock. Needham & Company LLC's target price points to a potential upside of 23.04% from the company's previous close.

DOCS has been the topic of several other reports. Evercore set a $35.00 target price on Doximity in a research report on Tuesday, September 29th. Zacks Research raised Doximity from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Wells Fargo & Company cut Doximity from an "equal weight" rating to an "underweight" rating and set a $18.00 price target for the company. in a research report on Monday, August 10th. Truist Financial boosted their price target on Doximity from $19.00 to $24.00 and gave the company a "hold" rating in a research note on Thursday, August 13th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $38.00 price objective on shares of Doximity in a report on Friday, October 16th. Eight research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $30.73.

Doximity Trading Down 3.9%

Shares of Doximity stock opened at $33.32 on Friday. The firm's 50 day simple moving average is $28.95 and its two-hundred day simple moving average is $25.55. The firm has a market capitalization of $5.94 billion, a price-to-earnings ratio of 39.20, a PEG ratio of 27.12 and a beta of 1.29. Doximity has a 12-month low of $17.15 and a 12-month high of $64.55.

Doximity (NYSE:DOCS - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.16 by $0.13. The business had revenue of $156.62 million during the quarter. Doximity had a net margin of 25.48% and a return on equity of 18.06%. The company's quarterly revenue was up 7.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.36 earnings per share. On average, sell-side analysts predict that Doximity will post 0.74 EPS for the current fiscal year.

Insider Activity

In related news, CAO Siddharth Sitaram sold 2,613 shares of Doximity stock in a transaction that occurred on Wednesday, October 14th. The stock was sold at an average price of $30.68, for a total transaction of $80,166.84. Following the transaction, the chief accounting officer owned 101,432 shares in the company, valued at approximately $3,111,933.76. This trade represents a 2.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Phoebe Yang sold 1,290 shares of the business's stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $26.71, for a total transaction of $34,455.90. Following the completion of the transaction, the director owned 24,744 shares of the company's stock, valued at approximately $660,912.24. This trade represents a 4.96% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 13,750 shares of company stock worth $386,310 over the last ninety days. Corporate insiders own 31.80% of the company's stock.

Institutional Investors Weigh In On Doximity

Hedge funds and other institutional investors have recently modified their holdings of the company. Signaturefd LLC raised its stake in Doximity by 10.4% in the third quarter. Signaturefd LLC now owns 4,205 shares of the company's stock valued at $119,000 after buying an additional 397 shares in the last quarter. Nisa Investment Advisors LLC boosted its holdings in shares of Doximity by 59.9% in the 3rd quarter. Nisa Investment Advisors LLC now owns 1,855 shares of the company's stock valued at $53,000 after buying an additional 695 shares in the last quarter. Apella Capital LLC boosted its holdings in shares of Doximity by 1.4% in the 3rd quarter. Apella Capital LLC now owns 59,488 shares of the company's stock valued at $1,647,000 after buying an additional 802 shares in the last quarter. GAMMA Investing LLC grew its position in shares of Doximity by 19.8% in the 3rd quarter. GAMMA Investing LLC now owns 5,834 shares of the company's stock valued at $165,000 after buying an additional 963 shares during the last quarter. Finally, Pictet Asset Management Holding SA grew its position in shares of Doximity by 6.4% in the 1st quarter. Pictet Asset Management Holding SA now owns 19,224 shares of the company's stock valued at $448,000 after buying an additional 1,156 shares during the last quarter. 87.19% of the stock is currently owned by institutional investors and hedge funds.

Doximity News Summary

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Fiscal Q2 revenue was $174.5 million, up 3.6% year over year and above estimates; earnings of $0.36 per share also beat consensus. Doximity forecast Q3 revenue of $195–$196 million and FY2027 revenue of $678–$683 million, both ahead of analyst expectations. Fiscal Q2 results
• Positive Sentiment: Management cited record engagement, a 51% adjusted EBITDA margin, and more than 190 health systems purchasing its AI suite. The earnings-call report also describes AI search as an eight-figure business, signaling potential to expand beyond Doximity’s established offerings. Q2 earnings call highlights
• Neutral Sentiment: Despite beating estimates, Doximity’s quarterly EPS declined from $0.45 a year earlier, while revenue growth was 3.6%. This slower year-over-year pace may help explain why the results did not reassure investors, despite the slightly higher-than-expected outlook. Sales beat estimates but shares faced pressure
• Negative Sentiment: Multiple law firms are publicizing a securities class action with a November 16 lead-plaintiff deadline. The complaint alleges Doximity overstated the Newsfeed product’s contribution to revenue growth and its competitive position; these claims have not been established in court. The litigation adds uncertainty. Class action deadline notice

Doximity Company Profile

Doximity, Inc operates a digital platform designed for medical professionals in the United States. Its network connects physicians, nurse practitioners, physician assistants, pharmacists and other healthcare professionals, providing tools for professional communication, collaboration and career development.

The company offers services including secure messaging, telehealth, digital faxing, physician scheduling and professional networking. Doximity also provides medical news and educational content, as well as recruiting and job-search resources for healthcare professionals.

Doximity generates additional revenue through digital marketing and engagement solutions for pharmaceutical companies, healthcare organizations and health systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.