nCino (NASDAQ:NCNO) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded nCino to “Hold” from “Buy,” adding to mixed analyst sentiment. Goldman Sachs also cut its price target to $21, while the broader consensus remains “Moderate Buy” with an average target of $25.29.
• nCino shares opened at $19.17, with a market capitalization of approximately $2.1 billion and a valuation of roughly 160 times earnings. The stock has traded between $13.80 and $33.92 over the past year.
• Institutional investors own nearly 95% of nCino’s shares and several hedge funds increased their positions, while insiders sold shares primarily to cover tax obligations related to vested equity awards.

nCino (NASDAQ:NCNO - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other research firms have also weighed in on NCNO. The Goldman Sachs Group lowered their price objective on nCino from $24.00 to $21.00 and set a "neutral" rating for the company in a research report on Thursday, May 14th. Zacks Research lowered nCino from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Weiss Ratings upgraded nCino from a "sell (d)" rating to a "sell (d+)" rating in a research report on Thursday, May 28th. JPMorgan Chase & Co. raised their target price on nCino from $16.00 to $17.00 and gave the stock a "neutral" rating in a research note on Monday, June 22nd. Finally, Citigroup reiterated a "market outperform" rating on shares of nCino in a report on Monday, June 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $25.29.

nCino Price Performance

Shares of NASDAQ NCNO opened at $19.17 on Friday. The company has a market capitalization of $2.10 billion, a PE ratio of 159.75 and a beta of 0.66. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.31. nCino has a twelve month low of $13.80 and a twelve month high of $33.92. The firm has a fifty day simple moving average of $16.76 and a 200 day simple moving average of $17.09.

Insider Activity

In other news, Director Pierre Naude sold 4,677 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $19.22, for a total transaction of $89,891.94. Following the transaction, the director 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider April Rieger sold 7,852 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $19.22, for a total value of $150,915.44. Following the completion of the sale, the insider owned 375,749 shares of the company's stock, valued at approximately $7,221,895.78. This represents a 2.05% 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. In the last ninety days, insiders have sold 83,350 shares of company stock valued at $1,568,144. Corporate insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On nCino

Hedge funds have recently added to or reduced their stakes in the company. Millennium Management LLC raised its position in shares of nCino by 16.6% during the first quarter. Millennium Management LLC now owns 303,853 shares of the company's stock worth $8,347,000 after purchasing an additional 43,247 shares during the period. Woodline Partners LP grew its position in nCino by 105.3% in the 1st quarter. Woodline Partners LP now owns 13,227 shares of the company's stock valued at $363,000 after purchasing an additional 6,783 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in nCino by 16.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 281,435 shares of the company's stock valued at $7,731,000 after purchasing an additional 39,345 shares during the period. Prudential Financial Inc. bought a new stake in nCino during the 2nd quarter valued at $208,000. Finally, Marshall Wace LLP bought a new stake in nCino during the 2nd quarter valued at $4,163,000. Institutional investors and hedge funds own 94.76% of the company's stock.

More nCino News

Here are the key news stories impacting nCino this week:

• Positive Sentiment: nCino released Mortgage MCP, a capability that allows lenders to connect AI agents directly to the nCino Mortgage Suite while preserving the company’s compliance, permissions and governance framework. The product could strengthen nCino’s competitive position as banks seek to deploy AI safely and automate mortgage workflows. nCino Mortgage MCP announcement
• Positive Sentiment: Conestoga Capital Advisors’ second-quarter investor letter highlighted nCino’s durable expansion prospects amid improving sentiment toward small-cap growth stocks. Conestoga has also increased its nCino position, reinforcing the view that institutional investors see long-term potential in the company’s cloud-based banking platform. Conestoga Capital Advisors investor letter
• Neutral Sentiment: Analyst sentiment remains broadly favorable, with a consensus “Moderate Buy” rating and an average price target of $25.29. However, ratings are mixed: Needham and Keefe, Bruyette & Woods remain positive, while Goldman Sachs and JPMorgan maintain neutral views, and Zacks recently downgraded the stock to Hold.
• Negative Sentiment: Several executives and insiders sold shares, including the CEO, CFO, director Pierre Naude and other senior personnel. The transactions totaled approximately 67,000 shares and were made under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards, making them less concerning than discretionary sales; nevertheless, the volume may weigh on short-term sentiment. nCino insider transactions
• Negative Sentiment: nCino’s valuation remains demanding, with a price-to-earnings ratio above 150. Recent analyst target cuts, including reductions by Goldman Sachs and Citizens JMP, could limit upside unless the company delivers stronger growth and profitability.

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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