Azora Capital LP Invests $18.01 Million in nCino Inc. $NCNO

Key Points

• Azora Capital LP acquired 1.1 million nCino shares worth approximately $18.01 million, giving it a 1.01% stake. Institutional investors collectively own 94.76% of the company.
• nCino shares opened at $21.51, above their 50-day and 200-day moving averages. Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $24.38.
• Recent results showed revenue of about $161 million, ahead of estimates, while management authorized an additional $100 million stock-repurchase program. However, valuation concerns, mixed EPS figures and largely in-line guidance remain potential risks.

Azora Capital LP purchased a new stake in shares of nCino Inc. (NASDAQ:NCNO - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 1,101,641 shares of the company's stock, valued at approximately $18,012,000. Azora Capital LP owned 1.01% of nCino as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Bamco Inc. NY bought a new stake in shares of nCino during the 2nd quarter worth about $30,537,000. Bank of America Corp DE bought a new position in shares of nCino in the second quarter valued at approximately $84,319,000. American Capital Management Inc. bought a new position in shares of nCino in the second quarter valued at approximately $83,508,000. Man Group plc acquired a new position in shares of nCino during the second quarter valued at approximately $6,962,000. Finally, Jupiter Topco LLC acquired a new position in shares of nCino during the second quarter valued at approximately $5,716,000. 94.76% of the stock is currently owned by institutional investors.

Insider Buying and Selling at nCino

In related news, SVP Jeanette Sellers sold 1,536 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $19.53, for a total value of $29,998.08. Following the completion of the sale, the senior vice president owned 48,453 shares in the company, valued at approximately $946,287.09. This represents a 3.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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, Director Pierre Naude sold 4,677 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $19.22, for a total transaction of $89,891.94. Following the completion of the transaction, the director directly owned 1,116,707 shares of the company's stock, valued at $21,463,108.54. This represents a 0.42% decrease in their position. 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 over the last three months. 1.90% of the stock is owned by insiders.

nCino Trading Up 3.4%

Shares of NCNO opened at $21.51 on Thursday. The business's 50-day moving average price is $18.02 and its 200 day moving average price is $16.89. The stock has a market capitalization of $2.36 billion, a P/E ratio of 71.70 and a beta of 0.66. nCino Inc. has a 1-year low of $13.80 and a 1-year high of $33.92. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.31.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on NCNO shares. JPMorgan Chase & Co. upped their target price on nCino from $16.00 to $17.00 and gave the stock a "neutral" rating in a research report on Monday, June 22nd. Piper Sandler assumed coverage on nCino in a research report on Monday. They set an "overweight" rating and a $25.00 price target on the stock. Keefe, Bruyette & Woods boosted their price objective on nCino from $24.00 to $25.00 and gave the stock an "outperform" rating in a research note on Wednesday. UBS Group restated a "buy" rating on shares of nCino in a report on Wednesday. Finally, Citigroup reaffirmed a "market outperform" rating on shares of nCino in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, nCino presently has a consensus rating of "Moderate Buy" and an average price target of $24.38.

Trending Headlines about nCino

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

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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