American Capital Management Inc. Invests $83.51 Million in nCino Inc. $NCNO

Key Points

• American Capital Management initiated an $83.5 million nCino position, purchasing 5.1 million shares and making nCino its seventh-largest holding at 3.7% of the portfolio. The firm owned approximately 4.66% of nCino at quarter-end.
• nCino reported quarterly revenue of about $161 million, up 8.2% year over year, while adjusted EPS of $0.30 exceeded estimates. Management also authorized an additional $100 million share-repurchase program and cited growing customer demand for its AI agents.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average target of $24.38, though valuation and mixed EPS reporting remain concerns. Shares opened at $21.51, with a market capitalization of roughly $2.36 billion and a P/E ratio of 71.7.

American Capital Management Inc. acquired a new stake in nCino Inc. (NASDAQ:NCNO - Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 5,107,539 shares of the company's stock, valued at approximately $83,508,000. nCino comprises approximately 3.7% of American Capital Management Inc.'s investment portfolio, making the stock its 7th largest holding. American Capital Management Inc. owned about 4.66% of nCino at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. CWM LLC raised its holdings in nCino by 255.8% during the fourth quarter. CWM LLC now owns 1,142 shares of the company's stock worth $29,000 after acquiring an additional 821 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in nCino in the fourth quarter valued at approximately $38,000. Farther Finance Advisors LLC grew its stake in nCino by 76.2% in the fourth quarter. Farther Finance Advisors LLC now owns 1,670 shares of the company's stock valued at $43,000 after purchasing an additional 722 shares in the last quarter. Quarry LP increased its position in shares of nCino by 138.2% during the 3rd quarter. Quarry LP now owns 1,701 shares of the company's stock worth $46,000 after purchasing an additional 987 shares during the last quarter. Finally, Optiver Holding B.V. acquired a new position in shares of nCino during the 1st quarter worth approximately $32,000. Institutional investors own 94.76% of the company's stock.

Insider Activity at nCino

In related news, CEO Sean Desmond sold 28,675 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $19.22, for a total value of $551,133.50. Following the completion of the sale, the chief executive officer directly owned 1,234,831 shares in the company, valued at $23,733,451.82. The trade was a 2.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 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, CFO Gregory Orenstein sold 11,780 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $19.22, for a total value of $226,411.60. Following the completion of the transaction, the chief financial officer directly owned 690,513 shares in the company, valued at approximately $13,271,659.86. This represents a 1.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 83,350 shares of company stock valued at $1,568,144 in the last 90 days. Corporate insiders own 1.90% of the company's stock.

nCino News Summary

Here are the key news stories impacting nCino this week:

• Positive Sentiment: Quarterly results exceeded key estimates. nCino reported approximately $161 million in revenue, up 8.2% year over year and above consensus expectations. Adjusted earnings were reported at $0.30 per share, ahead of the $0.28 consensus estimate, although some reports cited GAAP EPS of $0.05. nCino Reports Second Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Management authorized an additional $100 million stock-repurchase program, potentially supporting per-share value and signaling confidence in nCino’s financial position. nCino Reports Second Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: AI adoption is gaining traction. CEO Sean Desmond said early customers have consumed their initial credits for nCino’s AI agents and returned to purchase more, suggesting potential for recurring expansion revenue. Banks Double Down on nCino AI Agents After Using Initial Credits
• Neutral Sentiment: Analyst sentiment was mixed. Citizens JMP raised its target to $25 and maintained an outperform rating, while Needham reaffirmed Buy with a $25 target. BTIG reiterated Neutral, and Truist raised its target to $20 but kept a Hold rating.
• Negative Sentiment: The earnings reaction was pressured by conflicting EPS figures and valuation concerns. Reports citing $0.05 GAAP EPS showed a miss versus consensus, while the adjusted-EPS beat was stronger. With a high price-to-earnings ratio, investors may demand continued rapid growth.
• Negative Sentiment: Guidance was broadly in line rather than sharply above expectations. Fiscal 2027 revenue guidance of $644 million-$647 million was close to the $644.5 million consensus, while third-quarter guidance of $161.3 million-$163.3 million also bracketed estimates. nCino Stock Drops Despite Strong Q2 Earnings Beat

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Barclays increased their price objective on nCino from $22.00 to $23.00 and gave the company an "overweight" rating in a report on Wednesday. Piper Sandler began coverage on shares of nCino in a report on Monday. They set an "overweight" rating and a $25.00 target price on the stock. Zacks Research lowered shares of nCino from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Morgan Stanley increased their price target on shares of nCino from $23.00 to $25.00 and gave the company an "overweight" rating in a research note on Wednesday. Finally, Needham & Company LLC reissued a "buy" rating and issued a $25.00 price objective on shares of nCino in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $24.38.

nCino Stock Up 3.4%

Shares of NCNO opened at $21.51 on Thursday. nCino Inc. has a 52 week low of $13.80 and a 52 week high of $33.92. The firm has a market cap of $2.36 billion, a P/E ratio of 71.70 and a beta of 0.66. The firm's 50-day simple moving average is $18.02 and its 200 day simple moving average is $16.89. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.89 and a current ratio of 0.89.

nCino Profile

nCino, Inc provides a cloud-based banking operating system designed to modernize and streamline processes for financial institutions. Built on a software-as-a-service (SaaS) model, the nCino Bank Operating System integrates key banking functions into a unified platform, enabling banks and credit unions to enhance efficiency, reduce risk and improve customer experiences.

Founded in 2012 as a spinoff from Live Oak Bank, nCino launched its flagship offering to address the needs of commercial and retail lenders seeking to replace legacy systems.

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