Doximity (NYSE:DOCS) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Doximity from “hold” to “strong sell,” adding to a generally cautious analyst backdrop. The broader Street consensus remains “Hold,” with a consensus price target of $30.62.
• The stock fell 2% and was trading around $21.09, well below its 52-week high of $76.51. Doximity also has a market cap of about $3.86 billion and a 50-day moving average of $22.78.
• Insider and institutional activity has been mixed: insiders have sold shares recently, while institutions continue to hold the majority of the stock at 87.19%. The company also has an active $500 million share buyback program authorized earlier this year.

Doximity (NYSE:DOCS - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Tuesday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Wells Fargo & Company restated an "equal weight" rating and issued a $18.00 target price (down from $32.00) on shares of Doximity in a report on Thursday, May 14th. Piper Sandler raised their target price on Doximity from $40.00 to $42.00 and gave the company an "overweight" rating in a report on Friday, February 20th. Canaccord Genuity Group dropped their target price on Doximity from $34.00 to $30.00 and set a "buy" rating on the stock in a report on Thursday, May 14th. KeyCorp lowered Doximity from an "overweight" rating to a "sector weight" rating in a report on Thursday, May 14th. Finally, Robert W. Baird restated a "neutral" rating and issued a $18.00 target price (down from $40.00) on shares of Doximity in a report on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $30.62.

Doximity Stock Down 2.0%

Shares of Doximity stock opened at $21.09 on Tuesday. Doximity has a 52 week low of $17.15 and a 52 week high of $76.51. The firm has a 50 day moving average price of $22.78. The firm has a market capitalization of $3.86 billion, a PE ratio of 21.30, a PEG ratio of 3.66 and a beta of 1.30.

Doximity announced that its Board of Directors has approved a share buyback program on Thursday, February 5th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Kira Scherer Wampler sold 9,000 shares of Doximity stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $26.06, for a total transaction of $234,540.00. Following the sale, the director directly owned 19,839 shares in the company, valued at approximately $517,004.34. This trade represents a 31.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Siddharth Sitaram sold 2,309 shares of Doximity stock in a transaction 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 sale, the insider owned 89,396 shares in the company, valued at $2,303,734.92. This trade represents a 2.52% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 16,055 shares of company stock worth $404,061 over the last quarter. 31.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Doximity

A number of hedge funds have recently bought and sold shares of DOCS. Northwestern Mutual Wealth Management Co. lifted its holdings in Doximity by 99.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 796 shares of the company's stock worth $35,000 after acquiring an additional 397 shares during the period. Toth Financial Advisory Corp lifted its holdings in Doximity by 100.0% during the fourth quarter. Toth Financial Advisory Corp now owns 1,000 shares of the company's stock worth $44,000 after acquiring an additional 500 shares during the period. Atlantic Union Bankshares Corp lifted its holdings in Doximity by 136.9% during the third quarter. Atlantic Union Bankshares Corp now owns 616 shares of the company's stock worth $45,000 after acquiring an additional 356 shares during the period. Parallel Advisors LLC lifted its holdings in Doximity by 111.0% during the first quarter. Parallel Advisors LLC now owns 2,560 shares of the company's stock worth $60,000 after acquiring an additional 1,347 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its holdings in Doximity by 937.7% during the first quarter. EverSource Wealth Advisors LLC now owns 2,833 shares of the company's stock worth $66,000 after acquiring an additional 2,560 shares during the period. 87.19% of the stock is currently owned by institutional investors.

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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