Doximity (NYSE:DOCS) Lowered to Hold Rating by Wells Fargo & Company

Key Points

• Wells Fargo downgraded Doximity from “strong-buy” to “hold,” adding to a wave of more cautious analyst sentiment around the stock.
• Several firms also cut price targets after earnings, including JPMorgan, BMO, Goldman Sachs, and Needham, with MarketBeat noting a consensus rating of Moderate Buy and an average target of $30.62.
• Doximity’s shares were trading near $17.94, close to the 52-week low, even as the company announced a $500 million share buyback authorization and reported insider selling and high institutional ownership.

Doximity (NYSE:DOCS - Get Free Report) was downgraded by equities research analysts at Wells Fargo & Company from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

DOCS has been the subject of several other research reports. Barclays set a $20.00 price objective on shares of Doximity in a research note on Thursday. JPMorgan Chase & Co. dropped their price target on Doximity from $33.00 to $28.00 and set a "neutral" rating for the company in a research report on Thursday. BMO Capital Markets dropped their price target on Doximity from $25.00 to $20.00 and set a "market perform" rating for the company in a research report 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. Finally, Needham & Company LLC dropped their target price on Doximity from $55.00 to $27.00 and set a "buy" rating for the company in a report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $30.62.

Doximity Price Performance

Shares of DOCS opened at $17.94 on Thursday. Doximity has a one year low of $17.15 and a one year high of $76.51. The stock has a market capitalization of $3.31 billion, a PE ratio of 18.12, a price-to-earnings-growth ratio of 1.66 and a beta of 1.36. The stock's 50 day moving average price is $24.09.

Doximity declared that its Board of Directors has authorized a stock buyback program on Thursday, February 5th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to reacquire up to 8% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, Director Kira Scherer Wampler sold 9,000 shares of the stock in a transaction that occurred 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 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Siddharth Sitaram sold 2,427 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $21.09, for a total transaction of $51,185.43. Following the transaction, the insider directly owned 86,705 shares of the company's stock, valued at $1,828,608.45. The trade was a 2.72% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 18,055 shares of company stock valued at $456,061. 31.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Whittier Trust Co. of Nevada Inc. boosted its holdings in Doximity by 59.5% during the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 480 shares of the company's stock valued at $35,000 after acquiring an additional 179 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Doximity by 0.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 38,978 shares of the company's stock valued at $2,262,000 after acquiring an additional 210 shares during the period. Rakuten Securities Inc. grew its holdings in shares of Doximity by 14.0% in the third quarter. Rakuten Securities Inc. now owns 1,763 shares of the company's stock valued at $129,000 after purchasing an additional 217 shares in the last quarter. BOKF NA grew its holdings in shares of Doximity by 5.3% in the third quarter. BOKF NA now owns 5,356 shares of the company's stock valued at $392,000 after purchasing an additional 269 shares in the last quarter. Finally, Northwestern Mutual Investment Management Company LLC increased its stake in Doximity by 1.1% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 30,736 shares of the company's stock worth $1,361,000 after buying an additional 333 shares during the period. 87.19% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Doximity

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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