Doximity (NYSE:DOCS) Trading 8.6% Higher - Still a Buy?

Key Points

• Doximity shares rose 8.6% in Friday trading, recovering from a recent selloff, but volume was below average. The move came as some analysts said the stock may be technically oversold and due for a rebound.
• Recent earnings were mixed: quarterly EPS of $0.26 beat expectations at the low end and revenue climbed 5.1% year over year to $145.37 million. However, the company’s fiscal 2027 guidance came in below Wall Street estimates.
• Sentiment remains pressured by multiple analyst price-target cuts and downgrades, along with insider selling and elevated put-option activity. Even so, the company has an active $500 million buyback program, which can signal management sees value in the stock.

Doximity, Inc. (NYSE:DOCS - Get Free Report)'s stock price traded up 8.6% during trading on Friday . The company traded as high as $19.49 and last traded at $19.5560. 1,593,385 shares traded hands during mid-day trading, a decline of 57% from the average session volume of 3,669,736 shares. The stock had previously closed at $18.01.

Doximity News Roundup

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Doximity reported quarterly EPS of $0.26, beating the lower end of expectations, and revenue rose 5.1% year over year to $145.37 million, showing the business is still growing. Doximity Earnings Report
• Neutral Sentiment: Some analysts said the stock is technically oversold and could be due for a rebound after a sharp recent selloff, suggesting the heavy selling pressure may be nearing exhaustion. Zacks Oversold/Turnaround Article
• Negative Sentiment: Doximity’s fiscal 2027 revenue guidance came in below Wall Street estimates, with management forecasting $151 million-$152 million for Q1 and $664 million-$676 million for the full year versus higher consensus expectations. Doximity Q4 2026 Earnings Call Transcript
• Negative Sentiment: Several brokerages cut price targets or downgraded the stock, including JPMorgan, Mizuho, BMO Capital Markets, Robert W. Baird, Wells Fargo, BTIG, and Truist, signaling falling confidence in near-term upside. Analyst Downgrades and Price Target Cuts
• Negative Sentiment: Investor sentiment was further pressured by insider selling and unusually high put-option activity, which can suggest traders are hedging or expecting additional downside. Insider Trade Disclosure

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. BMO Capital Markets lowered their price target on shares of Doximity from $25.00 to $20.00 and set a "market perform" rating for the company in a report on Thursday. Morgan Stanley lowered their price target on shares of Doximity from $49.00 to $35.00 and set an "overweight" rating for the company in a report on Thursday. Zacks Research raised shares of Doximity from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 21st. Evercore downgraded shares of Doximity from an "outperform" rating to an "in-line" rating and set a $25.00 price objective for the company. in a research note on Wednesday, April 8th. Finally, Barclays reissued an "equal weight" rating and issued a $20.00 price objective (down from $38.00) on shares of Doximity in a research note on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and fourteen have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $30.62.

Doximity Stock Up 6.1%

The firm has a market capitalization of $3.53 billion, a P/E ratio of 19.27, a PEG ratio of 1.66 and a beta of 1.36. The stock's fifty day moving average is $24.09.

Doximity declared that its board has initiated a stock buyback program on Thursday, February 5th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 8% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other news, insider Siddharth Sitaram sold 2,309 shares of the business's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $25.77, for a total transaction of $59,502.93. Following the sale, the insider directly owned 89,396 shares of the company's stock, valued at $2,303,734.92. The trade was a 2.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, 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 9,000 shares of the company's stock in a transaction 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 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,055 shares of company stock worth $456,061 over the last three months. Corporate insiders own 31.30% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Entropy Technologies LP raised its position in shares of Doximity by 11.9% in the first quarter. Entropy Technologies LP now owns 51,414 shares of the company's stock worth $1,198,000 after acquiring an additional 5,476 shares during the period. Senvest Management LLC acquired a new position in shares of Doximity in the first quarter worth about $296,000. Renaissance Technologies LLC raised its position in shares of Doximity by 29.4% in the first quarter. Renaissance Technologies LLC now owns 3,059,749 shares of the company's stock worth $71,292,000 after acquiring an additional 694,300 shares during the period. Caxton Associates LLP acquired a new position in shares of Doximity in the first quarter worth about $1,809,000. Finally, Bank of Nova Scotia acquired a new position in shares of Doximity in the first quarter worth about $10,130,000. 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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