Doximity (NYSE:DOCS) Shares Gap Down - Time to Sell?

Key Points

• Shares gapped down before the open, opening at $23.50 versus the prior close of $24.71 and trading down about 2.9% on roughly 447,675 shares.
• The analyst consensus is a Moderate Buy with a consensus price target of $41.26, though several firms have recently trimmed their targets (e.g., BofA, JPMorgan, BTIG).
• Doximity slightly beat quarterly EPS estimates ($0.46 vs. $0.45), saw revenue rise 9.8% year-over-year, and its board authorized a $500 million share buyback (up to ~8% of shares).

Doximity, Inc. (NYSE:DOCS - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $24.71, but opened at $23.50. Doximity shares last traded at $23.7650, with a volume of 447,675 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on DOCS shares. Bank of America lowered their price objective on Doximity from $56.00 to $47.00 and set a "buy" rating for the company in a research note on Thursday. JPMorgan Chase & Co. reduced their price target on Doximity from $40.00 to $33.00 and set a "neutral" rating for the company in a research report on Friday, February 20th. Loop Capital set a $31.00 price target on Doximity in a research report on Tuesday, March 17th. BTIG Research reduced their price target on Doximity from $80.00 to $50.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Finally, Needham & Company LLC upgraded Doximity to a "moderate buy" rating in a research report on Friday, February 6th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $41.26.

Doximity Trading Down 2.9%

The business has a 50-day simple moving average of $24.40. The firm has a market cap of $4.43 billion, a P/E ratio of 19.99, a price-to-earnings-growth ratio of 1.77 and a beta of 1.42.

Doximity (NYSE:DOCS - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The company reported $0.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.01. Doximity had a return on equity of 23.84% and a net margin of 37.54%.The firm's revenue was up 9.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.45 earnings per share.

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

Insider Buying and Selling at Doximity

In other news, Director Kira Scherer Wampler sold 2,000 shares of the company's stock in a transaction 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 owned 19,839 shares in the company, valued at $515,814. This represents a 9.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Siddharth Sitaram sold 2,427 shares of the company's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $21.09, for a total value of $51,185.43. Following the completion of the sale, the insider owned 86,705 shares of the company's stock, valued at approximately $1,828,608.45. This trade represents a 2.72% decrease in their position. The SEC filing for this sale provides additional information. 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 90 days, insiders sold 9,028 shares of company stock valued at $225,641. Insiders own 31.30% of the company's stock.

Institutional Trading of Doximity

Institutional investors have recently modified their holdings of the company. Carmignac Gestion raised its position in shares of Doximity by 355.9% during the fourth quarter. Carmignac Gestion now owns 1,893,026 shares of the company's stock worth $83,831,000 after purchasing an additional 1,477,798 shares during the period. SG Americas Securities LLC raised its position in shares of Doximity by 3,403.2% during the first quarter. SG Americas Securities LLC now owns 1,408,597 shares of the company's stock worth $32,820,000 after purchasing an additional 1,368,388 shares during the period. Northwestern Mutual Wealth Management Co. raised its position in shares of Doximity by 325,436.6% during the fourth 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. raised its position in shares of Doximity by 3,422.7% during the fourth 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 raised its position in shares of Doximity by 25.7% during the third quarter. Capital World Investors now owns 5,381,431 shares of the company's stock worth $393,652,000 after purchasing an additional 1,101,848 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.