Doximity (NYSE:DOCS) Downgraded by Robert W. Baird to "Hold"

Key Points

• Robert W. Baird downgraded Doximity from “strong-buy” to “hold,” adding to a wave of more cautious analyst views on the stock. BTIG also cut its rating to neutral and several firms lowered price targets.
• The stock has sold off sharply, with shares opening at $17.94 and trading near their 52-week low of $17.15, far below the 52-week high of $76.51.
• Despite analyst concerns, Doximity recently beat adjusted EPS estimates and posted 5.1% revenue growth, but its forward guidance came in below Wall Street expectations, raising worries about slower growth ahead.

Doximity (NYSE:DOCS - Get Free Report) was downgraded by stock analysts at Robert W. Baird from a "strong-buy" rating to a "hold" rating in a note issued to investors on Thursday,Zacks.com reports.

Other analysts have also recently issued research reports about the stock. BTIG Research cut shares of Doximity from a "buy" rating to a "neutral" rating in a research note on Thursday. The Goldman Sachs Group dropped their price target on Doximity from $28.00 to $24.00 and set a "neutral" rating for the company in a research report on Thursday. Loop Capital set a $31.00 price objective on shares of Doximity in a research note on Tuesday, March 17th. Barclays set a $20.00 target price on Doximity in a report on Thursday. Finally, Leerink Partners dropped their price target on shares of Doximity from $31.00 to $25.00 and set an "outperform" rating for the company in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and thirteen have given a Hold rating to the company. According to data from MarketBeat, Doximity presently has an average rating of "Moderate Buy" and a consensus price target of $30.62.

Doximity Trading Down 23.3%

Shares of Doximity stock opened at $17.94 on Thursday. The stock has a market cap of $3.31 billion, a price-to-earnings ratio of 18.12, a PEG ratio of 1.66 and a beta of 1.36. Doximity has a twelve month low of $17.15 and a twelve month high of $76.51. The company has a 50-day simple moving average of $24.09.

Doximity announced that its board has authorized a stock repurchase program on Thursday, February 5th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 8% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Doximity

In other Doximity news, insider Siddharth Sitaram sold 2,309 shares of the business's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $25.77, for a total value of $59,502.93. Following the completion of the sale, the insider owned 89,396 shares in the company, valued at approximately $2,303,734.92. The trade was a 2.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 Kira Scherer Wampler sold 9,000 shares of the company's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $26.06, for a total transaction of $234,540.00. Following the completion of the sale, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 18,055 shares of company stock valued at $456,061 in the last 90 days. Insiders own 31.30% of the company's stock.

Institutional Trading of Doximity

Several institutional investors and hedge funds have recently added to or reduced their stakes in DOCS. Vanguard Group Inc. increased its holdings in Doximity by 4.1% in the fourth 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 in the last quarter. Aubrey Capital Management Ltd purchased a new position in shares of Doximity in the third quarter valued at $4,572,000. UBS Group AG increased its position in shares of Doximity by 26.5% in the fourth quarter. UBS Group AG now owns 680,260 shares of the company's stock valued at $30,122,000 after buying an additional 142,408 shares in the last quarter. Blair William & Co. IL increased its position in shares of Doximity by 1,990.7% in the third quarter. Blair William & Co. IL now owns 362,740 shares of the company's stock valued at $26,534,000 after buying an additional 345,390 shares in the last quarter. Finally, William Blair Investment Management LLC increased its position in shares of Doximity by 11.7% in the third 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 in the last quarter. 87.19% of the stock is owned by hedge funds and other institutional investors.

Doximity News Summary

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Doximity reported adjusted earnings of $0.26 per share, topping 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
• Positive Sentiment: Management highlighted ongoing AI investment and strong cash generation, which could support longer-term product growth if monetization improves. Doximity Earnings Call
• Neutral Sentiment: Truist maintained a Hold rating while lowering its target to $19, signaling caution but not a full bearish call. Truist Hold Rating
• Neutral Sentiment: Several firms also trimmed price targets, including JPMorgan to $28, Needham to $27, Mizuho to $26, and BMO to $20, reflecting more conservative expectations after earnings. JPMorgan Price Target Cut
• Negative Sentiment: Doximity missed the broader earnings consensus, posting $0.26 per share versus expectations for $0.28, which likely disappointed traders looking for a cleaner beat. Doximity Lags Q4 Earnings Estimates
• Negative Sentiment: More importantly, first-quarter FY2027 revenue guidance of $151 million to $152 million and full-year FY2027 revenue guidance of $664 million to $676 million both came in below Wall Street estimates, pointing to a softer outlook. Doximity Q4 2026 Earnings Call Transcript
• Negative Sentiment: Analyst sentiment deteriorated further, with BTIG downgrading the stock and multiple firms cutting targets, adding to concerns about slowing growth and margin pressure from AI spending. BTIG Downgrades Doximity
• Negative Sentiment: Investors also noted an insider share sale and heavy put-option activity, which may be reinforcing the bearish tone around the stock. Insider Sale 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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