Bank of Nova Scotia Invests $2.70 Million in nCino Inc. $NCNO

Key Points

• Bank of Nova Scotia acquired 164,900 nCino shares worth approximately $2.70 million, while institutional investors collectively own 94.76% of the company.
• Analyst sentiment remains generally positive, with nCino receiving a “Moderate Buy” consensus rating and an average price target of $24.38; several firms recently raised targets to $25.
• nCino reported revenue of about $161 million, exceeding estimates, and authorized an additional $100 million share-repurchase program. However, valuation concerns, mixed EPS measures and largely in-line guidance could limit investor enthusiasm.

Bank of Nova Scotia purchased a new position in nCino Inc. (NASDAQ:NCNO - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 164,900 shares of the company's stock, valued at approximately $2,696,000. Bank of Nova Scotia owned approximately 0.15% of nCino at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of the business. Farther Finance Advisors LLC boosted its stake in nCino by 76.2% during the fourth quarter. Farther Finance Advisors LLC now owns 1,670 shares of the company's stock worth $43,000 after acquiring an additional 722 shares in the last quarter. Captrust Financial Advisors increased its stake in shares of nCino by 1.2% during the third quarter. Captrust Financial Advisors now owns 62,747 shares of the company's stock valued at $1,701,000 after purchasing an additional 743 shares in the last quarter. Steward Partners Investment Advisory LLC increased its stake in shares of nCino by 14.7% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 5,958 shares of the company's stock valued at $153,000 after purchasing an additional 765 shares in the last quarter. CWM LLC lifted its holdings in shares of nCino by 255.8% during the fourth quarter. CWM LLC now owns 1,142 shares of the company's stock valued at $29,000 after purchasing an additional 821 shares during the last quarter. Finally, Quarry LP lifted its holdings in shares of nCino by 138.2% during the third quarter. Quarry LP now owns 1,701 shares of the company's stock valued at $46,000 after purchasing an additional 987 shares during the last quarter. 94.76% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently weighed in on NCNO shares. Piper Sandler assumed coverage on nCino in a research note on Monday. They issued an "overweight" rating and a $25.00 price target on the stock. Zacks Research cut nCino from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. JPMorgan Chase & Co. lifted their price objective on nCino from $16.00 to $17.00 and gave the company a "neutral" rating in a research note on Monday, June 22nd. Morgan Stanley boosted their target price on nCino from $23.00 to $25.00 and gave the stock an "overweight" rating in a report on Wednesday. Finally, Truist Financial raised their price target on nCino from $19.00 to $20.00 and gave the company a "hold" rating in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, nCino has an average rating of "Moderate Buy" and a consensus price target of $24.38.

More nCino News

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

Insider Buying and Selling at nCino

In other news, CEO Sean Desmond sold 11,815 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $19.53, for a total transaction of $230,746.95. Following the transaction, the chief executive officer directly owned 1,231,080 shares of the company's stock, valued at $24,042,992.40. This represents a 0.95% decrease in their ownership of the stock. The sale 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, Director Pierre Naude sold 4,677 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $19.22, for a total value of $89,891.94. Following the sale, the director directly owned 1,116,707 shares in the company, valued at $21,463,108.54. This trade represents a 0.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 83,350 shares of company stock worth $1,568,144. Insiders own 1.90% of the company's stock.

nCino Price Performance

Shares of NASDAQ NCNO opened at $21.51 on Thursday. nCino Inc. has a twelve month low of $13.80 and a twelve month 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 company has a 50 day moving average of $18.02 and a 200 day moving average of $16.89. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.31.

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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