Shares of nCino (NASDAQ: NCNO) received a significant boost this week as Zacks Research upgraded the stock from a hold rating to a strong-buy rating. This upgrade, reported on Monday morning, reflects a growing confidence in the company’s potential within the financial technology sector.
Multiple research firms have also revisited their ratings for nCino. On the same day, Stephens elevated the stock from a hold to an overweight rating. Following this trend, Morgan Stanley revised its price target from $33.00 to $35.00 while maintaining an equal-weight rating. Other notable ratings include Baird R W, which upgraded nCino to strong-buy on July 14, and William Blair, which moved the stock from market perform to outperform on October 10. Additionally, Raymond James Financial upgraded nCino from outperform to strong-buy and set a price target of $36.00.
As it stands, three analysts have issued a strong buy rating for nCino, while nine have given it a buy rating. Another nine analysts categorized the stock as hold, and one has issued a sell rating. According to data from MarketBeat.com, nCino currently holds an average rating of “Moderate Buy” with an average target price of $33.94.
Stock Performance and Financial Metrics
On Monday, nCino’s shares opened at $25.80. The company has a market capitalization of $2.99 billion and exhibits a debt-to-equity ratio of 0.24. With a quick ratio and current ratio both at 1.03, nCino appears to maintain a stable financial position. The stock’s 50-day simple moving average stands at $28.08, while the 200-day average is $27.16. Over the past 52 weeks, nCino’s stock has fluctuated between a low of $18.75 and a high of $43.20.
In its latest earnings report released on August 26, 2023, nCino reported earnings per share (EPS) of $0.22, surpassing analysts’ expectations of $0.14 by $0.08. The company generated $148.82 million in revenue for the quarter, exceeding the consensus estimate of $143.17 million. Year-over-year, nCino’s revenue increased by 12.4%. The company has projected its FY 2026 guidance to be between $0.770 and $0.800 EPS, with Q3 2026 guidance set at $0.200 to $0.21 EPS.
Insider Transactions and Institutional Trading
In related news, several insider transactions were reported recently. Director Pierre Naude sold 4,659 shares on August 4, 2023, at an average price of $27.45, totaling approximately $127,889.55. Following this sale, Naude retained 1,192,461 shares valued at around $32,733,054.45. Similarly, insider April Rieger sold 3,028 shares, also on August 4, for a total of about $83,118.60, reducing her ownership by 1.24%.
Over the last 90 days, insiders sold a total of 4,480,723 shares valued at approximately $135,667,553, indicating that insiders currently own 5.70% of nCino’s stock.
Institutional investors have shown significant interest in nCino. Robeco Institutional Asset Management B.V. increased its stake by 7.2% in the second quarter, now holding 520,000 shares valued at $14,544,000. Select Equity Group L.P. made a more substantial move, increasing its stake by 395.3% in the first quarter, acquiring an additional 211,665 shares. Other firms, such as Conestoga Capital Advisors LLC and Clearline Capital LP, have also expanded their positions in nCino significantly.
Currently, institutional investors hold 94.76% of nCino’s stock, reflecting strong institutional confidence in the company’s future prospects.
Founded as a software-as-a-service company, nCino provides cloud-based applications to financial institutions both in the United States and globally. Its flagship product, the nCino Bank Operating System, integrates various banking functions, including client onboarding and loan origination, into a single platform, highlighting its innovative approach in the financial technology landscape.
