Ararat Capital Management LP Acquires 88,752 Shares of nCino Inc. $NCNO

Key Points

• Ararat Capital Management raised its stake in nCino by 32.6%, buying 88,752 shares to hold 361,292 shares (about 0.31% of the company) worth roughly $9.8 million, making nCino its 10th-largest holding.
• nCino's board authorized a $100.0 million share repurchase (up to ~3.7% of shares), a move the company frames as an indication management views the stock as undervalued.
• Insider selling has been active: CEO Sean Desmond sold 16,047 shares and insiders have offloaded 71,310 shares (~$1.38 million) in the last three months, leaving insiders with about 5.7% ownership.

Ararat Capital Management LP raised its holdings in shares of nCino Inc. (NASDAQ:NCNO - Free Report) by 32.6% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 361,292 shares of the company's stock after buying an additional 88,752 shares during the quarter. nCino comprises about 5.3% of Ararat Capital Management LP's portfolio, making the stock its 10th biggest holding. Ararat Capital Management LP owned approximately 0.31% of nCino worth $9,795,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Farther Finance Advisors LLC boosted its position in nCino by 186.4% during the third quarter. Farther Finance Advisors LLC now owns 948 shares of the company's stock worth $26,000 after acquiring an additional 617 shares during the last quarter. Advisors Asset Management Inc. lifted its stake in nCino by 68.5% in the 2nd quarter. Advisors Asset Management Inc. now owns 1,127 shares of the company's stock worth $32,000 after purchasing an additional 458 shares in the last quarter. AlphaQuest LLC boosted its holdings in shares of nCino by 5,022.2% during the 3rd quarter. AlphaQuest LLC now owns 1,383 shares of the company's stock worth $37,000 after purchasing an additional 1,356 shares during the last quarter. Fifth Third Bancorp boosted its holdings in shares of nCino by 105.3% during the 3rd quarter. Fifth Third Bancorp now owns 1,915 shares of the company's stock worth $52,000 after purchasing an additional 982 shares during the last quarter. Finally, Bessemer Group Inc. grew its position in shares of nCino by 1,536.6% in the third quarter. Bessemer Group Inc. now owns 3,355 shares of the company's stock valued at $91,000 after purchasing an additional 3,150 shares in the last quarter. 94.76% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Needham & Company LLC reaffirmed a "buy" rating and issued a $38.00 price target on shares of nCino in a report on Thursday, December 4th. Keefe, Bruyette & Woods upped their target price on nCino from $34.50 to $36.00 and gave the company an "outperform" rating in a report on Thursday, December 4th. JPMorgan Chase & Co. cut their target price on nCino from $30.00 to $16.00 and set a "neutral" rating for the company in a research note on Wednesday, February 18th. Barclays reduced their price target on nCino from $37.00 to $34.00 and set an "overweight" rating on the stock in a report on Monday, January 5th. Finally, BTIG Research began coverage on shares of nCino in a research report on Tuesday, December 16th. They set a "neutral" rating on the stock. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $32.33.

Insider Buying and Selling

In related news, CEO Sean Desmond sold 16,047 shares of the firm's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $18.68, for a total transaction of $299,757.96. Following the completion of the sale, the chief executive officer directly owned 602,550 shares of the company's stock, valued at approximately $11,255,634. This trade represents a 2.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Jeanette Sellers sold 2,182 shares of the business's stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $18.26, for a total transaction of $39,843.32. Following the completion of the sale, the senior vice president owned 43,219 shares in the company, valued at approximately $789,178.94. This trade represents a 4.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 71,310 shares of company stock valued at $1,382,650. 5.70% of the stock is currently owned by company insiders.

nCino Stock Down 1.0%

NCNO stock opened at $15.07 on Friday. nCino Inc. has a one year low of $13.80 and a one year high of $33.92. The firm has a market cap of $1.73 billion, a PE ratio of -83.72, a PEG ratio of 2.97 and a beta of 0.59. The firm's 50 day moving average price is $19.65 and its 200-day moving average price is $24.21. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.01 and a current ratio of 1.01.

nCino announced that its Board of Directors has authorized a share repurchase plan on Monday, December 8th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to repurchase up to 3.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

About nCino

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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