Doximity (NYSE:DOCS) Downgraded by Wells Fargo & Company to Hold

Wells Fargo & Company cut shares of Doximity (NYSE:DOCS) from a strong-buy rating to a hold rating in a research note issued to investors on Thursday morning,Zacks.com reports.

Several other equities analysts also recently weighed in on DOCS. Mizuho decreased their target price on Doximity from $34.00 to $26.00 and set a “neutral” rating on the stock in a research report on Thursday. Canaccord Genuity Group decreased their target price on Doximity from $34.00 to $30.00 and set a “buy” rating on the stock in a research report on Thursday. Jefferies Financial Group downgraded Doximity from a “buy” rating to a “hold” rating and decreased their target price for the company from $51.00 to $19.00 in a research report on Thursday. Bank of America decreased their target price on Doximity from $56.00 to $47.00 and set a “buy” rating on the stock in a research report on Thursday, April 16th. Finally, Barclays set a $20.00 target price on Doximity in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and thirteen have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $30.62.

Doximity Stock Performance

NYSE DOCS opened at $17.94 on Thursday. The stock has a market capitalization of $3.31 billion, a P/E ratio of 18.12, a PEG ratio of 1.66 and a beta of 1.36. The firm has a 50 day moving average price of $24.09. Doximity has a 1-year low of $17.15 and a 1-year high of $76.51.

Doximity declared that its Board of Directors has approved a share buyback program on Thursday, February 5th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Siddharth Sitaram sold 2,427 shares of Doximity stock in a transaction that occurred 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 transaction, the insider owned 86,705 shares in the company, valued at approximately $1,828,608.45. This trade represents a 2.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through 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 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 transaction, the director owned 19,839 shares in the company, valued at approximately $517,004.34. The trade was a 31.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 18,055 shares of company stock worth $456,061. 31.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Doximity

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

Doximity News Roundup

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Doximity reported adjusted earnings of $0.26 per share, topping the lower analyst estimate of $0.17, and revenue rose 5.1% year over year to $145.37 million, showing the business is still growing. Doximity Earnings Report
• Positive Sentiment: Management highlighted ongoing AI investment and strong cash generation, which could support longer-term product growth if monetization improves. Doximity Earnings Call
• Neutral Sentiment: Truist maintained a Hold rating while lowering its target to $19, signaling caution but not a full bearish call. Truist Hold Rating
• Neutral Sentiment: Several firms also trimmed price targets, including JPMorgan to $28, Needham to $27, Mizuho to $26, and BMO to $20, reflecting more conservative expectations after earnings. JPMorgan Price Target Cut
• Negative Sentiment: Doximity missed the broader earnings consensus, posting $0.26 per share versus expectations for $0.28, which likely disappointed traders looking for a cleaner beat. Doximity Lags Q4 Earnings Estimates
• Negative Sentiment: More importantly, first-quarter FY2027 revenue guidance of $151 million to $152 million and full-year FY2027 revenue guidance of $664 million to $676 million both came in below Wall Street estimates, pointing to a softer outlook. Doximity Q4 2026 Earnings Call Transcript
• Negative Sentiment: Analyst sentiment deteriorated further, with BTIG downgrading the stock and multiple firms cutting targets, adding to concerns about slowing growth and margin pressure from AI spending. BTIG Downgrades Doximity
• Negative Sentiment: Investors also noted an insider share sale and heavy put-option activity, which may be reinforcing the bearish tone around the stock. Insider Sale Disclosure

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.