Truist Financial Reiterates "Hold" Rating for Doximity (NYSE:DOCS)

Key Points

• Truist Financial reiterated its Hold rating on Doximity and cut its price target to $19 from $29, implying only modest upside from the prior close.
• Several other analysts also turned more cautious, with firms like Evercore, Wells Fargo, Jefferies, and Mizuho lowering ratings or price targets. Overall, the stock now carries a Moderate Buy consensus, but sentiment has weakened.
• Doximity’s shares fell sharply to $17.78 amid heavy trading, while the company remains supported by a recently announced $500 million share buyback program. The article also notes recent insider selling, though those sales were tied to pre-arranged plans and equity vesting.

Doximity (NYSE:DOCS - Get Free Report)'s stock had its "hold" rating reissued by investment analysts at Truist Financial in a research report issued on Thursday,Benzinga reports. They presently have a $19.00 target price on the stock, down from their prior target price of $29.00. Truist Financial's price target would indicate a potential upside of 6.87% from the company's previous close.

A number of other analysts have also recently issued reports on DOCS. Evercore cut 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. The Goldman Sachs Group set a $24.00 price objective on shares of Doximity in a research note on Thursday. Wells Fargo & Company reissued an "equal weight" rating and issued a $18.00 price objective (down from $32.00) on shares of Doximity in a research note on Thursday. Jefferies Financial Group cut shares of Doximity from a "buy" rating to a "hold" rating and set a $19.00 price objective for the company. in a research note on Thursday. Finally, Mizuho reduced their price objective on shares of Doximity from $34.00 to $26.00 and set a "neutral" rating for the company in a research note on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat, Doximity has a consensus rating of "Moderate Buy" and an average target price of $31.71.

Doximity Stock Performance

Shares of DOCS stock traded down $5.61 during trading hours on Thursday, reaching $17.78. 9,081,873 shares of the company traded hands, compared to its average volume of 3,503,497. Doximity has a 12-month low of $17.15 and a 12-month high of $76.51. The stock has a market cap of $3.28 billion, a P/E ratio of 14.63, a P/E/G ratio of 1.88 and a beta of 1.36. The stock's 50-day moving average price is $24.27.

Doximity announced that its board has initiated a share 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 buy up to 8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other Doximity news, Director Kira Scherer Wampler sold 9,000 shares of Doximity stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $26.06, for a total value of $234,540.00. Following the sale, the director owned 19,839 shares of the company's stock, valued at $517,004.34. The trade was a 31.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Siddharth Sitaram sold 2,309 shares of Doximity stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $25.77, for a total value of $59,502.93. Following the completion of the transaction, the insider owned 89,396 shares of the company's stock, valued at approximately $2,303,734.92. This trade represents a 2.52% 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 ninety days, insiders 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 modified their holdings of DOCS. Vanguard Group Inc. increased its holdings in shares of Doximity by 4.1% in the fourth quarter. Vanguard Group Inc. now owns 13,285,485 shares of the company's stock valued at $588,281,000 after purchasing an additional 518,916 shares during the period. Aubrey Capital Management Ltd acquired a new position in shares of Doximity in the third quarter valued at about $4,572,000. UBS Group AG increased its holdings in shares of Doximity by 26.5% in the fourth quarter. UBS Group AG now owns 680,260 shares of the company's stock valued at $30,122,000 after purchasing an additional 142,408 shares during the period. Blair William & Co. IL increased its holdings in shares of Doximity by 1,990.7% in the third quarter. Blair William & Co. IL now owns 362,740 shares of the company's stock valued at $26,534,000 after purchasing an additional 345,390 shares during the period. Finally, William Blair Investment Management LLC increased its holdings in shares of Doximity by 11.7% in the third quarter. William Blair Investment Management LLC now owns 5,829,169 shares of the company's stock valued at $426,404,000 after purchasing an additional 609,775 shares during the period. Hedge funds and other institutional investors own 87.19% of the company's stock.

Doximity News Summary

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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