Doximity (NYSE:DOCS) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Doximity from a "strong sell" to a "hold," while the analyst consensus remains a Moderate Buy (2 Strong Buy, 12 Buy, 8 Hold) with a consensus target price of $41.26.
• Doximity announced a $500 million share repurchase program (about 8% of shares) and reported quarterly EPS of $0.46 (beating estimates) with revenue up 9.8% and a net margin of 37.5%.
• The stock is trading around $24.22 (market cap $4.47B, P/E 20.2) amid mixed analyst signals and recent price-target reductions from several brokers (examples: Morgan Stanley, BTIG, Barclays, BMO).

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

Several other equities analysts have also weighed in on DOCS. Morgan Stanley cut their target price on shares of Doximity from $65.00 to $49.00 and set an "overweight" rating for the company in a report on Friday, February 6th. BTIG Research dropped their price target on shares of Doximity from $80.00 to $50.00 and set a "buy" rating on the stock in a research note on Friday, February 6th. BMO Capital Markets set a $25.00 price target on shares of Doximity in a research note on Friday, February 6th. Barclays dropped their price target on shares of Doximity from $63.00 to $38.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 11th. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $44.00 price target on shares of Doximity in a research note on Monday, March 9th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $41.26.

Doximity Stock Performance

NYSE:DOCS opened at $24.22 on Tuesday. The stock has a market cap of $4.47 billion, a price-to-earnings ratio of 20.18, a price-to-earnings-growth ratio of 1.72 and a beta of 1.42. The company's 50 day moving average price is $24.24. Doximity has a 1-year low of $20.55 and a 1-year high of $76.51.

Doximity (NYSE:DOCS - Get Free Report) last posted its earnings results on Thursday, February 5th. The company reported $0.46 earnings per share 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%. The business's revenue was up 9.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.45 earnings per share. As a group, equities research analysts forecast that Doximity will post 1.11 EPS for the current year.

Doximity announced that its Board of Directors has initiated a stock repurchase program on Thursday, February 5th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Doximity

In other Doximity news, insider Siddharth Sitaram sold 2,427 shares of Doximity stock in a transaction on Friday, April 10th. The shares were sold at an average price of $21.09, for a total transaction of $51,185.43. Following the sale, the insider 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. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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. Also, Director Kira Scherer Wampler sold 2,000 shares of Doximity stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $26.00, for a total transaction of $52,000.00. Following the sale, the director directly owned 19,839 shares in the company, valued at approximately $515,814. This trade represents a 9.16% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 9,028 shares of company stock worth $225,641. 31.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Doximity

Several institutional investors and hedge funds have recently added to or reduced their stakes in DOCS. Whittier Trust Co. of Nevada Inc. boosted its position in shares of 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 last quarter. Oregon Public Employees Retirement Fund boosted its position in shares of Doximity by 0.7% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 27,500 shares of the company's stock valued at $2,012,000 after acquiring an additional 200 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of 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 last quarter. Rakuten Securities Inc. boosted its position in shares of Doximity by 14.0% during the 3rd quarter. Rakuten Securities Inc. now owns 1,763 shares of the company's stock valued at $129,000 after acquiring an additional 217 shares during the last quarter. Finally, BOKF NA boosted its position in shares of Doximity by 5.3% during the 3rd quarter. BOKF NA now owns 5,356 shares of the company's stock valued at $392,000 after acquiring an additional 269 shares during the last quarter. 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.

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