Doximity (NYSE:DOCS) Given New $27.00 Price Target at Needham & Company LLC

Key Points

• Needham cut its price target on Doximity from $55 to $27, while keeping a buy rating. The new target still implies about 14.8% upside from the current share price.
• Doximity shares fell 11.1% to open at $23.52 amid broader analyst caution. Several firms have recently lowered targets or ratings, and the stock now carries a consensus rating of Moderate Buy with an average target price of $33.60.
• The company reported better-than-expected adjusted EPS of $0.26 and revenue growth of 5.1% year over year to $145.37 million, but its forward guidance missed estimates, which likely weighed on sentiment.

Doximity (NYSE:DOCS - Get Free Report) had its price target dropped by analysts at Needham & Company LLC from $55.00 to $27.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's price objective suggests a potential upside of 14.82% from the company's current price.

Several other equities research analysts have also issued reports on DOCS. BTIG Research lowered Doximity from a "buy" rating to a "neutral" rating in a report on Thursday. JPMorgan Chase & Co. reduced their target price on Doximity from $40.00 to $33.00 and set a "neutral" rating for the company in a report on Friday, February 20th. Royal Bank Of Canada restated an "outperform" rating and issued a $44.00 target price on shares of Doximity in a report on Monday, March 9th. Canaccord Genuity Group set a $34.00 price target on Doximity and gave the stock a "buy" rating in a report on Monday, February 9th. Finally, BMO Capital Markets set a $25.00 price target on Doximity in a report on Friday, February 6th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $33.60.

Doximity Trading Down 11.1%

Shares of Doximity stock opened at $23.52 on Thursday. The firm has a market cap of $4.34 billion, a price-to-earnings ratio of 19.60, a price-to-earnings-growth ratio of 1.88 and a beta of 1.36. Doximity has a 52-week low of $20.55 and a 52-week high of $76.51. The firm's 50-day moving average price is $24.27.

Doximity announced that its board has initiated a share repurchase plan on Thursday, February 5th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Kira Scherer Wampler sold 9,000 shares of the business's stock in a transaction that occurred 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. The trade was a 31.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Siddharth Sitaram sold 2,309 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were 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 approximately $2,303,734.92. This represents a 2.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Over the last 90 days, insiders have sold 18,055 shares of company stock worth $456,061. 31.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Doximity

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted 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 acquiring an additional 518,916 shares during the last quarter. Aubrey Capital Management Ltd bought a new position in Doximity in the third quarter valued at about $4,572,000. UBS Group AG lifted its stake in 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 during the period. Blair William & Co. IL lifted its stake in 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 during the period. Finally, William Blair Investment Management LLC lifted its stake in 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 during the period. Institutional investors and hedge funds own 87.19% of the company's stock.

Key Headlines 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

About Doximity

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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