Doximity (NASDAQ:DOCS) to Buyback $500.00 million in Shares

Doximity (NASDAQ:DOCS) announced that its Board of Directors has authorized a share buyback program on Thursday, February 5th, RTT News reports. The company plans to repurchase $500.00 million in shares. This repurchase authorization allows the company to repurchase up to 8% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

DOCS has been the topic of a number of research analyst reports. Bank of America upgraded Doximity from a “neutral” rating to a “buy” rating and increased their price target for the stock from $75.00 to $82.00 in a report on Monday, October 27th. The Goldman Sachs Group set a $34.00 target price on shares of Doximity in a research report on Friday. BMO Capital Markets set a $25.00 price target on shares of Doximity in a report on Friday. JPMorgan Chase & Co. upgraded shares of Doximity from an “underweight” rating to a “neutral” rating and dropped their price objective for the company from $62.00 to $40.00 in a report on Friday. Finally, Canaccord Genuity Group set a $48.00 price objective on shares of Doximity in a research report on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Doximity currently has a consensus rating of “Moderate Buy” and an average price target of $51.39.

Doximity Trading Down 16.7%

DOCS opened at $27.75 on Friday. The company’s fifty day moving average price is $42.69 and its two-hundred day moving average price is $56.68. The company has a market cap of $5.23 billion, a price-to-earnings ratio of 27.75, a PEG ratio of 4.10 and a beta of 1.39. Doximity has a 1-year low of $23.66 and a 1-year high of $85.21.

Doximity (NASDAQ:DOCS) last posted its earnings results on Thursday, February 5th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.01. Doximity had a net margin of 36.60% and a return on equity of 21.75%. During the same period in the previous year, the firm posted $0.45 EPS. The firm’s quarterly revenue was up 9.8% on a year-over-year basis. As a group, equities analysts forecast that Doximity will post 0.99 earnings per share for the current fiscal year.

Key Doximity News

Here are the key news stories impacting Doximity this week:

• Positive Sentiment: Q3 results beat consensus on both revenue and EPS and the company highlighted record engagement and early AI product adoption — positives for long‑term monetization. Read More.
• Positive Sentiment: Board authorized a $500 million buyback (up to ~8% of shares), which signals management believes the stock is undervalued and should support shares over time. Read More.
• Positive Sentiment: Product recognition: Doximity ranked #1 in KLAS telehealth video platform for the 5th consecutive year — supportive for competitive positioning in telehealth and workflow products. Read More.
• Neutral Sentiment: Several sell‑side firms cut price targets (Truist, BTIG, Needham, Morgan Stanley) but largely kept buy/overweight ratings; JPMorgan moved to neutral with a lower target — analysts remain mixed on near‑term growth while some still see upside. Read More.
• Negative Sentiment: Management lowered FY26 revenue guidance and Q4 revenue guidance came in below Street expectations; guidance cut plus margin compression were cited as the main reasons for the sharp after‑hours decline. Read More.
• Negative Sentiment: Management flagged pharma budget delays and a cautious outlook that could weigh on near‑term revenue cadence; investors reacted to weaker forward visibility. Read More.

About Doximity

Doximity, Inc, headquartered in San Francisco, California, operates the leading professional medical network for healthcare professionals in the United States. Founded in 2011 by Jeff Tangney and Shari Buck, the company set out to create a secure digital environment where physicians, nurse practitioners and physician assistants can collaborate, share information and stay current with clinical news. Doximity went public in June 2021 and trades on the NASDAQ under the ticker symbol “DOCS.”

The core offering of Doximity is its HIPAA-compliant communication platform, which includes a secure messaging system, digital fax services and telehealth capabilities.