nCino (NASDAQ:NCNO) Stock Price Down 4.2% - Time to Sell?

Key Points

• nCino shares fell 4.2% on Thursday, trading as low as $14.67 and finishing around $14.76 on much lighter-than-average volume.
• Despite the drop, analysts remain broadly positive: the stock carries a “Moderate Buy” consensus rating with an average price target of $25.21, though several firms have recently cut their targets.
• nCino’s latest earnings beat expectations, with EPS of $0.37 versus the $0.21 consensus and revenue of $149.67 million, up 5.9% year over year.

nCino Inc. (NASDAQ:NCNO - Get Free Report) shares fell 4.2% during trading on Thursday . The stock traded as low as $14.67 and last traded at $14.7560. 283,053 shares changed hands during trading, a decline of 90% from the average session volume of 2,902,596 shares. The stock had previously closed at $15.41.

Analyst Upgrades and Downgrades

Several research firms have commented on NCNO. Piper Sandler raised shares of nCino from a "neutral" rating to an "overweight" rating and dropped their price objective for the company from $30.00 to $22.00 in a report on Wednesday, April 1st. Needham & Company LLC reissued a "buy" rating and set a $25.00 price objective on shares of nCino in a report on Thursday, May 28th. The Goldman Sachs Group dropped their price objective on shares of nCino from $24.00 to $21.00 and set a "neutral" rating for the company in a report on Thursday, May 14th. Keefe, Bruyette & Woods dropped their price objective on shares of nCino from $36.00 to $24.00 and set an "outperform" rating for the company in a report on Wednesday, April 1st. Finally, Stephens lowered their price target on shares of nCino from $34.00 to $26.00 and set an "overweight" rating for the company in a report on Wednesday, April 1st. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $25.21.

nCino Trading Down 2.8%

The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.89 and a current ratio of 0.89. The stock's fifty day moving average is $16.67 and its 200 day moving average is $19.44. The stock has a market cap of $1.64 billion, a P/E ratio of 125.21 and a beta of 0.69.

nCino (NASDAQ:NCNO - Get Free Report) last announced its quarterly earnings results on Tuesday, March 31st. The company reported $0.37 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.16. nCino had a net margin of 2.17% and a return on equity of 6.85%. The firm had revenue of $149.67 million during the quarter, compared to the consensus estimate of $147.41 million. During the same quarter last year, the firm earned $0.12 EPS. The firm's revenue for the quarter was up 5.9% compared to the same quarter last year. As a group, equities research analysts predict that nCino Inc. will post 0.68 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other nCino news, SVP Jeanette Sellers sold 3,695 shares of the firm's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $18.04, for a total value of $66,657.80. Following the completion of the sale, the senior vice president owned 50,876 shares of the company's stock, valued at $917,803.04. This trade represents a 6.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider April Rieger sold 9,693 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $18.02, for a total transaction of $174,667.86. Following the completion of the sale, the insider directly owned 383,601 shares of the company's stock, valued at approximately $6,912,490.02. The trade was a 2.46% 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 172,982 shares of company stock valued at $3,032,059 over the last quarter. Corporate insiders own 1.90% of the company's stock.

Institutional Trading of nCino

Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in nCino by 1.7% in the third quarter. Vanguard Group Inc. now owns 11,924,703 shares of the company's stock worth $323,279,000 after purchasing an additional 201,499 shares during the last quarter. Senvest Management LLC lifted its stake in nCino by 30.2% in the first quarter. Senvest Management LLC now owns 5,308,468 shares of the company's stock worth $79,521,000 after purchasing an additional 1,230,192 shares during the last quarter. Hawk Ridge Capital Management LP lifted its stake in nCino by 625.4% in the first quarter. Hawk Ridge Capital Management LP now owns 4,481,810 shares of the company's stock worth $67,138,000 after purchasing an additional 3,864,010 shares during the last quarter. Spyglass Capital Management LLC lifted its stake in nCino by 6.0% in the first quarter. Spyglass Capital Management LLC now owns 3,085,237 shares of the company's stock worth $46,217,000 after purchasing an additional 175,357 shares during the last quarter. Finally, Conestoga Capital Advisors LLC lifted its stake in nCino by 25.7% in the fourth quarter. Conestoga Capital Advisors LLC now owns 2,861,024 shares of the company's stock worth $73,357,000 after purchasing an additional 585,786 shares during the last quarter. Institutional investors own 94.76% of the company's stock.

nCino Company Profile

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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