NiCE (NASDAQ:NICE) Shares Gap Down - Time to Sell?

Key Points

• NiCE shares fell 6.5%, opening at $95.63 after previously closing at $103.29, likely reflecting investor concern over the company’s weaker-than-expected third-quarter revenue guidance.
• Second-quarter results exceeded expectations, with revenue rising 7.6% year over year to $782.3 million and EPS reaching $2.70. However, EPS declined from $3.01 a year earlier, while Q3 revenue guidance of $780 million-$790 million trailed the $795.3 million consensus estimate.
• Analyst sentiment remains broadly positive, with eight Buy ratings, five Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $131.17 versus the stock’s recent price near $96.

Shares of NiCE (NASDAQ:NICE - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $103.29, but opened at $95.63. NiCE shares last traded at $96.18, with a volume of 244,647 shares.

Key NiCE News

Here are the key news stories impacting NiCE this week:

• Positive Sentiment: NiCE reported second-quarter revenue of $782.3 million, up 7.6% year over year and above the $766.3 million consensus estimate. EPS of $2.70 also exceeded expectations of $2.63. Cloud revenue was particularly strong, increasing 12.6% to $609.0 million. NiCE Second-Quarter Results
• Positive Sentiment: Full-year 2026 EPS guidance of $11.06-$11.26 is above the $10.69 analyst consensus, suggesting management expects stronger profitability than Wall Street currently models. Full-year revenue guidance was broadly in line with consensus.
• Positive Sentiment: NiCE’s customer-engagement platform received positive external visibility after Concentrix and Currys won the company’s 2026 International CX Excellence Award for engagement orchestration. The recognition supports NiCE’s positioning in intelligent customer-experience software. Concentrix and Currys Win NiCE CX Award
• Neutral Sentiment: Analyst commentary remains relatively favorable, with reported price targets implying substantial potential upside. However, target prices and valuation screens are forward-looking and may not offset concerns about near-term growth.
• Negative Sentiment: Third-quarter EPS guidance of $2.73-$2.83 is above the $2.68 consensus, but revenue guidance of $780 million-$790 million falls short of the $795.3 million estimate. This revenue shortfall likely contributed to the stock’s decline.
• Negative Sentiment: Quarterly EPS declined from $3.01 in the prior-year period despite revenue growth, raising concerns about earnings momentum and profitability.

Analyst Ratings Changes

A number of research analysts have issued reports on NICE shares. Royal Bank Of Canada reissued an "outperform" rating and set a $130.00 price objective on shares of NiCE in a research report on Wednesday, June 10th. DA Davidson upgraded shares of NiCE from a "neutral" rating to a "buy" rating and set a $110.00 price target on the stock in a research report on Thursday, June 18th. Morgan Stanley decreased their price target on shares of NiCE from $148.00 to $130.00 and set an "overweight" rating for the company in a research note on Monday, May 11th. Wedbush lowered their price objective on shares of NiCE from $120.00 to $100.00 and set a "neutral" rating for the company in a report on Wednesday, June 10th. Finally, Citigroup reiterated a "market outperform" rating on shares of NiCE in a report on Thursday, June 11th. Eight analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $131.17.

NiCE Trading Down 6.5%

The company has a market capitalization of $5.65 billion, a P/E ratio of 11.46, a price-to-earnings-growth ratio of 1.04 and a beta of 0.74. The company's 50 day moving average is $93.92 and its 200-day moving average is $103.20.

NiCE (NASDAQ:NICE - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The technology company reported $2.70 EPS for the quarter, topping the consensus estimate of $2.63 by $0.07. The business had revenue of $782.29 million for the quarter, compared to analyst estimates of $766.27 million. NiCE had a net margin of 17.57% and a return on equity of 17.42%. NiCE's quarterly revenue was up 7.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.01 earnings per share. NiCE has set its FY 2026 guidance at 11.060-11.260 EPS and its Q3 2026 guidance at 2.730-2.830 EPS. Analysts predict that NiCE will post 9.08 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Steward Partners Investment Advisory LLC grew its stake in shares of NiCE by 14.3% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 845 shares of the technology company's stock worth $96,000 after acquiring an additional 106 shares during the last quarter. Qube Research & Technologies Ltd raised its position in shares of NiCE by 1.3% in the 3rd quarter. Qube Research & Technologies Ltd now owns 11,276 shares of the technology company's stock worth $1,633,000 after purchasing an additional 142 shares during the last quarter. Saturna Capital Corp boosted its stake in NiCE by 0.8% in the 4th quarter. Saturna Capital Corp now owns 18,892 shares of the technology company's stock worth $2,136,000 after purchasing an additional 150 shares in the last quarter. Frank Rimerman Advisors LLC grew its position in NiCE by 7.8% during the 1st quarter. Frank Rimerman Advisors LLC now owns 2,603 shares of the technology company's stock valued at $287,000 after purchasing an additional 189 shares during the last quarter. Finally, Summitry LLC increased its stake in NiCE by 5.6% during the 1st quarter. Summitry LLC now owns 4,081 shares of the technology company's stock valued at $450,000 after purchasing an additional 215 shares in the last quarter. Hedge funds and other institutional investors own 63.34% of the company's stock.

NiCE Company Profile

NiCE Ltd is a global software provider specializing in solutions for customer engagement, financial crime prevention, public safety, workforce optimization and border security. Its product offerings include cloud-native and on-premises platforms that leverage advanced analytics, artificial intelligence and automation to help organizations enhance customer experiences, streamline operations and ensure regulatory compliance. NiCE’s portfolio addresses the needs of contact centers, financial institutions, government agencies and enterprises across a broad range of industries.

In customer engagement, NiCE delivers tools for omnichannel interaction management, real-time and historical analytics, workforce management, and quality management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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