Doximity (NYSE:DOCS) Reaches New 12-Month Low - What's Next?

Key Points

• Shares hit a new 52-week low, trading as low as $22.80 and last at $22.52 on Tuesday.
• Doximity slightly beat EPS estimates with 9.8% revenue growth and strong margins, and its board approved a $500 million buyback (up to 8% of shares).
• Analysts' consensus is a Moderate Buy with an average price target of $46.63—roughly double the current price—and institutional investors own about 87% following large recent purchases.

Doximity, Inc. (NYSE:DOCS - Get Free Report)'s share price hit a new 52-week low on Tuesday . The stock traded as low as $22.80 and last traded at $22.5230, with a volume of 47156 shares traded. The stock had previously closed at $23.73.

Analyst Ratings Changes

A number of equities research analysts have issued reports on DOCS shares. KeyCorp set a $38.00 price objective on shares of Doximity in a report on Friday, February 6th. Zacks Research lowered shares of Doximity from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 13th. Wall Street Zen cut shares of Doximity from a "buy" rating to a "hold" rating in a research note on Saturday, January 10th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Doximity in a report on Wednesday, December 24th. Finally, Raymond James Financial reiterated a "strong-buy" rating on shares of Doximity in a research note on Monday, December 29th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $46.63.

Doximity Stock Performance

The firm has a market cap of $4.29 billion, a P/E ratio of 19.43, a P/E/G ratio of 1.33 and a beta of 1.44. The stock has a 50-day simple moving average of $28.52.

Doximity (NYSE:DOCS - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.45 by $0.01. Doximity had a net margin of 37.54% and a return on equity of 23.84%. During the same quarter last year, the company earned $0.45 earnings per share. The firm's revenue for the quarter was up 9.8% compared to the same quarter last year.

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

Insider Activity

In other news, Director Kira Scherer Wampler sold 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $26.00, for a total value of $52,000.00. Following the completion of the sale, the director directly owned 19,839 shares of the company's stock, valued at $515,814. This trade represents a 9.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Siddharth Sitaram sold 2,319 shares of Doximity stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $25.37, for a total value of $58,833.03. Following the completion of the transaction, the insider owned 84,132 shares of the company's stock, valued at approximately $2,134,428.84. This trade represents a 2.68% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 6,601 shares of company stock valued at $174,455. 31.30% of the stock is currently owned by company insiders.

Institutional Trading of Doximity

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Carmignac Gestion increased its position in Doximity by 355.9% during the fourth quarter. Carmignac Gestion now owns 1,893,026 shares of the company's stock valued at $83,831,000 after acquiring an additional 1,477,798 shares during the last quarter. Voya Investment Management LLC lifted its holdings in shares of Doximity by 932.8% in the 3rd quarter. Voya Investment Management LLC now owns 1,567,668 shares of the company's stock worth $114,267,000 after acquiring an additional 1,415,882 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Doximity by 325,436.6% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,298,891 shares of the company's stock worth $57,515,000 after purchasing an additional 1,298,492 shares during the period. Federated Hermes Inc. boosted its stake in shares of Doximity by 3,422.7% during the 4th quarter. Federated Hermes Inc. now owns 1,249,085 shares of the company's stock worth $55,309,000 after purchasing an additional 1,213,627 shares during the period. Finally, Capital World Investors grew its holdings in Doximity by 25.7% during the 3rd quarter. Capital World Investors now owns 5,381,431 shares of the company's stock valued at $393,652,000 after purchasing an additional 1,101,848 shares during the last quarter. Hedge funds and other institutional investors own 87.19% of the company's stock.

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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