nCino (NASDAQ:NCNO) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• nCino's shares surged from a previous close of $28.69 to open at $31.84 following a strong earnings report, with the stock lastly trading at $33.71.
• The company reported an earnings per share (EPS) of $0.22, exceeding analysts’ expectations of $0.14, along with revenues of $148.82 million, surpassing estimates of $143.17 million.
• Analyst ratings for nCino are generally positive, with one Strong Buy, eight Buy ratings, and a consensus price target of $32.94, indicating strong market interest.

Shares of nCino Inc. (NASDAQ:NCNO - Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $28.69, but opened at $31.84. nCino shares last traded at $33.71, with a volume of 1,843,772 shares traded.

The company reported $0.22 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.08. The company had revenue of $148.82 million for the quarter, compared to analyst estimates of $143.17 million. nCino had a positive return on equity of 0.19% and a negative net margin of 5.27%.nCino's revenue was up 12.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.14 earnings per share. nCino has set its FY 2026 guidance at 0.770-0.800 EPS. Q3 2026 guidance at 0.200-0.21 EPS.

Analyst Upgrades and Downgrades

NCNO has been the topic of a number of research analyst reports. Morgan Stanley raised their price target on nCino from $29.00 to $33.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 22nd. Robert W. Baird raised nCino from a "neutral" rating to an "outperform" rating and raised their price target for the stock from $30.00 to $38.00 in a research report on Monday, July 14th. Raymond James Financial raised their price target on nCino from $35.00 to $36.00 and gave the stock an "outperform" rating in a research report on Wednesday. UBS Group reaffirmed a "neutral" rating on shares of nCino in a research report on Wednesday. Finally, Truist Financial lifted their target price on nCino from $27.00 to $32.00 and gave the company a "hold" rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $32.94.

Insider Buying and Selling

In other news, CFO Gregory Orenstein sold 4,155 shares of nCino stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $27.45, for a total transaction of $114,054.75. Following the completion of the transaction, the chief financial officer directly owned 466,099 shares in the company, valued at approximately $12,794,417.55. The trade was a 0.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Pierre Naude sold 4,659 shares of nCino stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $27.45, for a total value of $127,889.55. Following the transaction, the director owned 1,192,461 shares of the company's stock, valued at $32,733,054.45. This represents a 0.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 21,603 shares of company stock valued at $593,002 in the last ninety days. 5.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On nCino

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. raised its holdings in nCino by 68.5% in the 2nd quarter. Advisors Asset Management Inc. now owns 1,127 shares of the company's stock valued at $32,000 after acquiring an additional 458 shares in the last quarter. Hilltop National Bank acquired a new position in nCino in the 2nd quarter valued at $42,000. Johnson Financial Group Inc. acquired a new position in nCino in the 4th quarter valued at $57,000. Covestor Ltd raised its holdings in nCino by 27.6% in the 1st quarter. Covestor Ltd now owns 2,388 shares of the company's stock valued at $66,000 after acquiring an additional 517 shares in the last quarter. Finally, First Horizon Advisors Inc. raised its holdings in nCino by 22.5% in the 1st quarter. First Horizon Advisors Inc. now owns 2,924 shares of the company's stock valued at $80,000 after acquiring an additional 538 shares in the last quarter. 94.76% of the stock is owned by institutional investors and hedge funds.

nCino Price Performance

The stock has a market capitalization of $3.92 billion, a price-to-earnings ratio of -130.18, a PEG ratio of 28.26 and a beta of 0.77. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.05 and a current ratio of 1.05. The company has a fifty day simple moving average of $28.39 and a two-hundred day simple moving average of $27.43.

nCino Company Profile

nCino, Inc, a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem.

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