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.

nCino Inc. (NASDAQ:NCNO - Get Free Report)'s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.08. nCino had a positive return on equity of 1.18% and a negative net margin of 5.86%.The company had revenue of $148.82 million for the quarter, compared to analyst estimates of $143.17 million. During the same period last year, the company earned $0.14 earnings per share. The business's revenue was up 12.4% compared to the same quarter last year. 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 several recent research reports. Piper Sandler raised their target price on nCino from $28.00 to $34.00 and gave the company a "neutral" rating in a report on Wednesday, August 27th. Raymond James Financial raised their price target on nCino from $35.00 to $36.00 and gave the company an "outperform" rating in a research report on Wednesday, August 27th. Morgan Stanley raised their price target on nCino from $33.00 to $35.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 27th. JPMorgan Chase & Co. began coverage on nCino in a research report on Wednesday, June 18th. They issued a "neutral" rating and a $30.00 price target on the stock. Finally, Stephens raised their price target on nCino from $24.00 to $28.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 21st. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $33.94.

Insider Transactions at nCino

In related news, insider April Rieger sold 3,028 shares of nCino stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $27.45, for a total transaction of $83,118.60. Following the sale, the insider directly owned 240,523 shares of the company's stock, valued at $6,602,356.35. This trade represents a 1.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Sean Desmond sold 9,550 shares of nCino stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $27.45, for a total value of $262,147.50. Following the sale, the chief executive officer directly owned 628,603 shares in the company, valued at approximately $17,255,152.35. This trade represents a 1.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 21,603 shares of company stock valued at $593,002 in the last ninety days. 5.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On nCino

A number of institutional investors have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. boosted its holdings in nCino by 68.5% during the second quarter. Advisors Asset Management Inc. now owns 1,127 shares of the company's stock valued at $32,000 after purchasing an additional 458 shares in the last quarter. Hilltop National Bank acquired a new stake in nCino during the second quarter valued at approximately $42,000. Covestor Ltd boosted its holdings in nCino by 27.6% during the first quarter. Covestor Ltd now owns 2,388 shares of the company's stock valued at $66,000 after purchasing an additional 517 shares in the last quarter. First Horizon Advisors Inc. boosted its holdings in nCino by 22.5% during the first quarter. First Horizon Advisors Inc. now owns 2,924 shares of the company's stock valued at $80,000 after purchasing an additional 538 shares in the last quarter. Finally, FNY Investment Advisers LLC acquired a new stake in nCino during the first quarter valued at approximately $82,000. 94.76% of the stock is owned by institutional investors and hedge funds.

nCino Stock Up 0.0%

The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.24. The business has a fifty day simple moving average of $28.72 and a two-hundred day simple moving average of $27.36. The company has a market capitalization of $3.72 billion, a price-to-earnings ratio of -110.72, a P/E/G ratio of 25.71 and a beta of 0.71.

About nCino

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.