Doximity (NYSE:DOCS) Trading Down 5.6% - Here's Why

Key Points

• Doximity shares fell 5.6% to about $25.11 in low-volume trading, despite the company recently exceeding quarterly EPS estimates with $0.29 versus the expected $0.16.
• Analyst sentiment remains cautious: Citigroup and Wells Fargo downgraded the stock, while Goldman Sachs cut its price target to $24. The consensus rating is “Hold,” with an average price target of $32.10.
• Doximity reported quarterly revenue of $156.62 million, up 7.3% year over year, with a 25.48% net margin. Institutional investors own 87.19% of the company, while insiders hold 31.80%.

Doximity, Inc. (NYSE:DOCS - Get Free Report)'s share price dropped 5.6% on Friday . The company traded as low as $25.18 and last traded at $25.1140. Approximately 551,877 shares traded hands during trading, a decline of 87% from the average daily volume of 4,252,556 shares. The stock had previously closed at $26.59.

Analyst Ratings Changes

Several research firms recently issued reports on DOCS. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Doximity in a research note on Wednesday. Citigroup lowered Doximity to an "underperform" rating in a report on Monday, June 29th. Zacks Research raised Doximity from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Wells Fargo & Company downgraded Doximity from an "equal weight" rating to an "underweight" rating and set a $18.00 price target for the company. in a research note on Monday. Finally, The Goldman Sachs Group lowered their price objective on Doximity from $28.00 to $24.00 and set a "neutral" rating on the stock in a report on Thursday, May 14th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $32.10.

Doximity Stock Performance

The firm has a market capitalization of $4.57 billion, a price-to-earnings ratio of 29.39, a price-to-earnings-growth ratio of 16.86 and a beta of 1.29. The business's 50 day moving average is $21.62 and its 200-day moving average is $23.83.

Doximity (NYSE:DOCS - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.13. Doximity had a net margin of 25.48% and a return on equity of 18.06%. The company had revenue of $156.62 million during the quarter. During the same quarter last year, the company earned $0.36 earnings per share. The firm's revenue was up 7.3% on a year-over-year basis. Equities research analysts forecast that Doximity, Inc. will post 0.86 EPS for the current fiscal year.

Insider Buying and Selling

In other Doximity news, insider Siddharth Sitaram sold 2,444 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $20.41, for a total value of $49,882.04. Following the completion of the sale, the insider directly owned 90,706 shares of the company's stock, valued at $1,851,309.46. This represents a 2.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 Timothy S. Cabral sold 7,500 shares of the firm's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $39.11, for a total transaction of $293,325.00. Following the completion of the sale, the director owned 3,221 shares in the company, valued at $125,973.31. This represents a 69.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 31.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Doximity

Institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its holdings in shares of Doximity by 24.2% during the 1st quarter. Royal Bank of Canada now owns 106,845 shares of the company's stock worth $6,200,000 after purchasing an additional 20,847 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Doximity by 0.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 38,978 shares of the company's stock valued at $2,262,000 after purchasing an additional 210 shares in the last quarter. NewEdge Advisors LLC lifted its position in Doximity by 613.7% in the first quarter. NewEdge Advisors LLC now owns 6,323 shares of the company's stock worth $367,000 after purchasing an additional 5,437 shares during the period. Goldman Sachs Group Inc. lifted its position in Doximity by 33.3% in the first quarter. Goldman Sachs Group Inc. now owns 255,529 shares of the company's stock worth $14,828,000 after purchasing an additional 63,873 shares during the period. Finally, Focus Partners Wealth acquired a new stake in Doximity during the first quarter worth $283,000. 87.19% of the stock is owned by institutional investors and hedge funds.

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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