Doximity (NYSE:DOCS) Trading Down 7.1% - Time to Sell?

Key Points

• Doximity shares fell 7.1% to about $24.47, with trading volume 56% below the average session level.
• Analysts have a mixed outlook: the consensus rating is “Hold” with a $32.18 price target, while recent firms have downgraded the stock or cut targets substantially.
• Doximity beat quarterly EPS expectations, reporting $0.29 versus $0.16 expected, but revenue growth was 7.3% year over year; insiders sold $387,369 of stock over the past three months.

Shares of Doximity, Inc. (NYSE:DOCS - Get Free Report) traded down 7.1% during trading on Tuesday . The stock traded as low as $24.47 and last traded at $24.4740. 1,827,327 shares changed hands during trading, a decline of 56% from the average session volume of 4,118,098 shares. The stock had previously closed at $26.35.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on DOCS shares. Canaccord Genuity Group set a $36.00 price objective on shares of Doximity in a research note on Friday, August 7th. Weiss Ratings reissued a "sell (d+)" rating on shares of Doximity in a research note on Wednesday, August 12th. Robert W. Baird restated a "neutral" rating and issued a $18.00 target price (down from $40.00) on shares of Doximity in a report on Thursday, May 14th. BTIG Research lowered shares of Doximity from a "buy" rating to a "neutral" rating in a report on Thursday, May 14th. Finally, Morgan Stanley dropped their price target on shares of Doximity from $49.00 to $35.00 and set an "overweight" rating for the company in a research report on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $32.18.

Doximity Price Performance

The stock has a market capitalization of $4.36 billion, a PE ratio of 28.85, a PEG ratio of 20.61 and a beta of 1.25. The company has a 50 day moving average price of $23.43 and a 200-day moving average price of $23.09.

Doximity (NYSE:DOCS - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.13. The company had revenue of $156.62 million during the quarter. Doximity had a return on equity of 18.06% and a net margin of 25.48%.The business's revenue was up 7.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.36 EPS. As a group, equities analysts anticipate that Doximity, Inc. will post 0.74 earnings per share for the current year.

Insider Buying and Selling

In other Doximity news, CAO Siddharth Sitaram sold 1,770 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $24.94, for a total transaction of $44,143.80. Following the transaction, the chief accounting officer owned 97,004 shares in the company, valued at approximately $2,419,279.76. This represents a 1.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 that occurred on Friday, August 7th. The shares were sold at an average price of $39.11, for a total value of $293,325.00. Following the completion of the transaction, the director owned 3,221 shares of the company's stock, valued at approximately $125,973.31. The trade was a 69.96% 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. Insiders sold a total of 11,270 shares of company stock valued at $387,369 over the last three months. Corporate insiders own 31.80% of the company's stock.

Hedge Funds Weigh In On Doximity

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. lifted its position in Doximity by 99.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 796 shares of the company's stock valued at $35,000 after acquiring an additional 397 shares during the period. Parallel Advisors LLC increased its stake in shares of Doximity by 111.0% during the first quarter. Parallel Advisors LLC now owns 2,560 shares of the company's stock valued at $60,000 after purchasing an additional 1,347 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Doximity by 937.7% during the first quarter. EverSource Wealth Advisors LLC now owns 2,833 shares of the company's stock valued at $66,000 after purchasing an additional 2,560 shares in the last quarter. Continuum Advisory LLC purchased a new position in shares of Doximity during the second quarter valued at approximately $67,000. Finally, Leonteq Securities AG grew its stake in shares of Doximity by 65.6% in the 1st quarter. Leonteq Securities AG now owns 2,912 shares of the company's stock worth $68,000 after buying an additional 1,154 shares during the last quarter. Hedge funds and other institutional investors own 87.19% of the company's stock.

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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