Doximity Target of Unusually High Options Trading (NYSE:DOCS)

Key Points

• Unusually heavy put options trading hit Doximity, with traders buying 6,661 put contracts on Thursday, about 140% above the normal daily volume.
• The stock fell sharply, dropping 24.5% to $17.67 on much heavier-than-average trading volume, near its 52-week low.
• Management and market signals were mixed: Doximity authorized a $500 million share repurchase program, while several analysts trimmed price targets and insiders recently sold shares under pre-arranged plans.

Doximity, Inc. (NYSE:DOCS - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Stock traders acquired 6,661 put options on the stock. This represents an increase of approximately 140% compared to the typical daily volume of 2,778 put options.

Doximity Trading Down 24.5%

DOCS traded down $5.72 during trading on Thursday, hitting $17.67. 10,627,564 shares of the company traded hands, compared to its average volume of 3,519,808. The firm has a market capitalization of $3.26 billion, a price-to-earnings ratio of 14.77, a P/E/G ratio of 1.88 and a beta of 1.36. The firm's fifty day moving average price is $24.27. Doximity has a one year low of $17.15 and a one year high of $76.51.

Doximity declared that its Board of Directors has authorized a share repurchase program on Thursday, February 5th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to buy up to 8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Doximity

In other Doximity news, 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 transaction, the director owned 19,839 shares in the company, valued at approximately $517,004.34. This represents a 31.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Siddharth Sitaram sold 2,427 shares of the company's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $21.09, for a total transaction 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. The trade was 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 have sold 18,055 shares of company stock worth $456,061. Corporate insiders own 31.30% of the company's stock.

Hedge Funds Weigh In On Doximity

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in Doximity by 4.1% during the fourth quarter. Vanguard Group Inc. now owns 13,285,485 shares of the company's stock worth $588,281,000 after purchasing an additional 518,916 shares during the period. William Blair Investment Management LLC boosted its position in Doximity by 11.7% during the third quarter. William Blair Investment Management LLC now owns 5,829,169 shares of the company's stock worth $426,404,000 after purchasing an additional 609,775 shares during the period. Capital World Investors boosted its position in Doximity by 5.1% during the fourth quarter. Capital World Investors now owns 5,654,875 shares of the company's stock worth $250,398,000 after purchasing an additional 273,444 shares during the period. Franklin Resources Inc. boosted its position in Doximity by 6.2% during the third quarter. Franklin Resources Inc. now owns 3,357,505 shares of the company's stock worth $245,601,000 after purchasing an additional 194,912 shares during the period. Finally, Invesco Ltd. boosted its position in Doximity by 4.2% during the fourth quarter. Invesco Ltd. now owns 2,426,819 shares of the company's stock worth $107,460,000 after purchasing an additional 98,519 shares during the period. Institutional investors own 87.19% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Loop Capital set a $31.00 target price on shares of Doximity in a research note on Tuesday, March 17th. JPMorgan Chase & Co. reduced their target price on shares of Doximity from $40.00 to $33.00 and set a "neutral" rating for the company in a research note on Friday, February 20th. Barclays reduced their target price on shares of Doximity from $63.00 to $38.00 and set an "overweight" rating for the company in a research note on Wednesday, February 11th. Leerink Partners set a $25.00 target price on shares of Doximity in a research note on Thursday. Finally, Evercore lowered shares of Doximity from an "outperform" rating to an "in-line" rating and set a $25.00 target price for the company. in a research note on Wednesday, April 8th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and thirteen have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Doximity currently has an average rating of "Moderate Buy" and an average price target of $31.71.

More Doximity News

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Doximity reported adjusted EPS of $0.26, topping one analyst estimate, and revenue rose 5.1% year over year to $145.37 million, showing the business is still growing. Doximity Earnings Report
• Positive Sentiment: The company highlighted strong profitability, including a 37.54% net margin and 23.84% return on equity, which supports its high-margin business model. Fiscal Q4 Earnings Snapshot
• Neutral Sentiment: Insider Siddharth Sitaram sold 2,309 shares, but the transaction was part of a pre-arranged 10b5-1 plan and tied to tax withholding from equity vesting, making it less concerning than a discretionary sale. Insider Sale Disclosure
• Negative Sentiment: Investors focused on the fact that Doximity missed broader earnings expectations, with EPS of $0.26 versus the Zacks consensus of $0.28, which suggests the quarter was not as strong as headline results implied. Doximity Lags Q4 Earnings Estimates
• Negative Sentiment: More importantly, management’s FY2027 and Q1 FY2027 revenue guidance came in below Wall Street estimates, fueling concerns about slowing growth and higher spending related to AI investments. Doximity Q4 2026 Earnings Call Transcript
• Negative Sentiment: Brokerage firms also turned more cautious, with BMO Capital Markets cutting its price target to $20 and Mizuho lowering its target to $26, reinforcing the weaker sentiment around the stock. Analyst Price Target Changes

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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