Doximity (NYSE:DOCS) Shares Gap Down – Here’s Why

Doximity, Inc. (NYSE:DOCS)’s share price gapped down before the market opened on Friday. The stock had previously closed at $33.18, but opened at $30.26. Doximity shares last traded at $30.8450, with a volume of 1,008,882 shares.

Doximity News Roundup

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Fiscal Q2 revenue was $174.5 million, ahead of FactSet’s $170.8 million estimate, while earnings of $0.36 per share also topped consensus. Revenue grew 3.6% year over year. Fiscal 2027 Second Quarter Results
• Positive Sentiment: Doximity forecast fiscal Q3 revenue of $195 million–$196 million, above the $193.4 million consensus, and lifted its FY2027 revenue outlook to $678 million–$683 million, versus $675.6 million expected. The CEO also cited a 51% adjusted EBITDA margin and AI products purchased by more than 190 health systems. Q2 Earnings Call Highlights
• Positive Sentiment: Needham reaffirmed its “buy” rating and $41 price target, signaling continued analyst confidence. Needham Rating
• Neutral Sentiment: Despite beating estimates and raising guidance, DOCS shares declined following the results. Revenue growth was modest, and EPS was down from $0.45 in the year-earlier quarter, which may help explain the muted reaction. Quarterly Sales Beat Estimates but Stock Drops
• Negative Sentiment: Multiple law firms are publicizing a securities class action and the November 16 lead-plaintiff deadline. The suit alleges Doximity misrepresented the Newsfeed’s contribution to growth; these claims have not been established in court, but the litigation adds uncertainty. Class Action Deadline Notice

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on DOCS shares. Freedom Capital lowered Doximity from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 8th. JPMorgan Chase & Co. raised their price target on shares of Doximity from $26.00 to $31.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Stifel Nicolaus set a $27.00 price target on shares of Doximity in a research report on Tuesday, September 8th. Wells Fargo & Company cut shares of Doximity from an “equal weight” rating to an “underweight” rating and set a $18.00 price objective for the company. in a research note on Monday, August 10th. Finally, Weiss Ratings raised shares of Doximity from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, October 6th. Eight research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $30.73.

Doximity Stock Performance

The firm’s 50 day moving average is $28.95 and its 200-day moving average is $25.55. The stock has a market capitalization of $5.67 billion, a price-to-earnings ratio of 37.48, a PEG ratio of 27.12 and a beta of 1.29.

Doximity (NYSE:DOCS) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating the consensus estimate 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 for the quarter. During the same quarter in the prior year, the business posted $0.36 EPS. The firm’s quarterly revenue was up 7.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Doximity, Inc. will post 0.74 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Phoebe Yang sold 1,290 shares of the stock in a transaction dated Wednesday, September 30th. The shares were sold at an average price of $26.71, for a total transaction of $34,455.90. Following the sale, the director directly owned 24,744 shares of the company’s stock, valued at $660,912.24. This represents a 4.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Siddharth Sitaram sold 2,613 shares of the stock in a transaction dated Wednesday, October 14th. The stock was sold at an average price of $30.68, for a total transaction of $80,166.84. Following the sale, the chief accounting officer directly owned 101,432 shares in the company, valued at approximately $3,111,933.76. The trade was a 2.51% decrease in their ownership of the stock. 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. Over the last quarter, insiders sold 13,750 shares of company stock worth $386,310. Company insiders own 31.80% of the company’s stock.

Hedge Funds Weigh In On Doximity

Hedge funds have recently bought and sold shares of the business. Carmignac Gestion grew its holdings in Doximity by 127.8% in the first quarter. Carmignac Gestion now owns 4,311,997 shares of the company’s stock valued at $100,480,000 after purchasing an additional 2,418,971 shares during the period. Assenagon Asset Management S.A. acquired a new position in shares of Doximity during the 3rd quarter worth approximately $28,858,000. Swedbank AB raised its stake in shares of Doximity by 1,147.9% during the 1st quarter. Swedbank AB now owns 1,010,559 shares of the company’s stock worth $23,546,000 after buying an additional 929,576 shares during the period. Renaissance Technologies LLC raised its stake in shares of Doximity by 29.4% during the 1st quarter. Renaissance Technologies LLC now owns 3,059,749 shares of the company’s stock worth $71,292,000 after buying an additional 694,300 shares during the period. Finally, Wellington Management Group LLP lifted its position in shares of Doximity by 24.7% during the 2nd quarter. Wellington Management Group LLP now owns 3,135,113 shares of the company’s stock valued at $65,022,000 after buying an additional 621,464 shares in the last quarter. Hedge funds and other institutional investors own 87.19% of the company’s stock.

About Doximity

Doximity, Inc operates a digital platform designed for medical professionals in the United States. Its network connects physicians, nurse practitioners, physician assistants, pharmacists and other healthcare professionals, providing tools for professional communication, collaboration and career development.

The company offers services including secure messaging, telehealth, digital faxing, physician scheduling and professional networking. Doximity also provides medical news and educational content, as well as recruiting and job-search resources for healthcare professionals.

Doximity generates additional revenue through digital marketing and engagement solutions for pharmaceutical companies, healthcare organizations and health systems.