BMO Capital Markets Cuts Doximity (NYSE:DOCS) Price Target to $20.00

Key Points

• BMO Capital Markets cut its price target on Doximity to $20 from $25 and kept a market perform rating, implying downside from the current share price.
• Doximity shares were down 11.1% in the session, opening at $23.52, as the market reacted to the lower target and mixed analyst sentiment.
• Despite the cautious outlook, Doximity recently reported earnings of $0.26 per share on 5.1% revenue growth to $145.37 million, though its guidance fell below analyst expectations.

Doximity (NYSE:DOCS - Get Free Report) had its price objective cut by BMO Capital Markets from $25.00 to $20.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a "market perform" rating on the stock. BMO Capital Markets' price objective points to a potential downside of 14.95% from the company's current price.

DOCS has been the topic of a number of other research reports. Freedom Capital raised shares of Doximity to a "strong-buy" rating in a research report on Tuesday, March 17th. Piper Sandler increased their price objective on shares of Doximity from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Friday, February 20th. The Goldman Sachs Group cut their price objective on shares of Doximity from $34.00 to $28.00 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Wells Fargo & Company set a $18.00 price objective on shares of Doximity and gave the stock an "equal weight" rating in a research report on Thursday. Finally, Truist Financial reissued a "hold" rating and set a $29.00 price objective (down from $37.00) on shares of Doximity in a research report on Monday, April 20th. Two analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and thirteen have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $32.95.

Doximity Stock Down 11.1%

DOCS stock opened at $23.52 on Thursday. The company has a market cap of $4.34 billion, a PE ratio of 19.60, a PEG ratio of 1.88 and a beta of 1.36. The stock's 50-day moving average is $24.27. Doximity has a 1 year low of $20.55 and a 1 year high of $76.51.

Doximity declared that its Board of Directors has authorized a stock buyback plan on Thursday, February 5th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 8% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board believes its shares are undervalued.

Insider Activity

In related news, Director Kira Scherer Wampler sold 9,000 shares of the firm's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $26.06, for a total value of $234,540.00. Following the transaction, the director owned 19,839 shares of the company's stock, valued at approximately $517,004.34. This trade represents a 31.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Siddharth Sitaram sold 2,427 shares of the firm's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $21.09, for a total transaction of $51,185.43. Following the completion of the transaction, the insider directly owned 86,705 shares in the company, valued at approximately $1,828,608.45. The trade was a 2.72% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders sold 18,055 shares of company stock worth $456,061. 31.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Doximity

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Doximity by 4.1% in the 4th quarter. Vanguard Group Inc. now owns 13,285,485 shares of the company's stock valued at $588,281,000 after buying an additional 518,916 shares during the last quarter. William Blair Investment Management LLC increased its stake in Doximity by 11.7% in 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 stake in Doximity by 5.1% in the 4th quarter. Capital World Investors now owns 5,654,875 shares of the company's stock valued at $250,398,000 after buying an additional 273,444 shares during the last quarter. Franklin Resources Inc. increased its stake in Doximity by 6.2% in the 3rd quarter. Franklin Resources Inc. now owns 3,357,505 shares of the company's stock valued at $245,601,000 after buying an additional 194,912 shares during the last quarter. Finally, Invesco Ltd. increased its stake in Doximity by 4.2% in the 4th quarter. Invesco Ltd. now owns 2,426,819 shares of the company's stock valued at $107,460,000 after buying an additional 98,519 shares during the last quarter. Hedge funds and other institutional investors own 87.19% of the company's stock.

Key Stories Impacting Doximity

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Doximity reported adjusted earnings of $0.26 per share, beating the lower analyst estimate of $0.17, and revenue rose 5.1% year over year to $145.37 million, showing the business is still growing. Doximity Earnings Report
• Neutral Sentiment: The company’s high margin profile remained intact, with a 23.84% return on equity and 37.54% net margin, suggesting continued operational efficiency. Fiscal Q4 Earnings Snapshot
• Negative Sentiment: Despite the earnings beat versus one estimate, Doximity missed the broader Zacks consensus of $0.28 per share, which may have disappointed traders looking for a stronger beat. Doximity Lags Q4 Earnings Estimates
• Negative Sentiment: More importantly for investors, Doximity’s first-quarter FY2027 revenue guidance of $151 million to $152 million came in below the $153.2 million consensus, and full-year FY2027 revenue guidance of $664 million to $676 million also missed the $696 million estimate, signaling a softer outlook. Doximity Q4 2026 Earnings Call Transcript
• Negative Sentiment: The stock also faced added caution from an insider sale earlier in the week, though it was disclosed as part of a pre-arranged 10b5-1 plan and tax withholding related to equity vesting. Insider Trade Disclosure

Doximity Company Profile

Doximity, trading as DOCS, operates a digital professional network and communications platform designed primarily for clinicians. Headquartered in San Francisco, the company connects physicians, nurse practitioners, physician assistants and other healthcare professionals, providing tools that streamline clinical communication, telehealth delivery and access to specialty-specific medical information. Its platform is positioned as a professional hub where clinicians manage their workflows, stay current with medical news and collaborate securely with peers.

The company’s offerings include secure messaging and video telehealth capabilities that enable clinicians to consult with patients and colleagues while protecting patient information.

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