nCino (NASDAQ:NCNO) Shares Gap Up After Earnings Beat

Shares of nCino Inc. (NASDAQ:NCNO) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $25.57, but opened at $27.05. nCino shares last traded at $25.4410, with a volume of 1,579,792 shares traded.

The company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.11. nCino had a positive return on equity of 2.28% and a negative net margin of 3.71%.The firm had revenue of $152.16 million for the quarter, compared to analysts’ expectations of $147.31 million. During the same period in the prior year, the business posted $0.21 earnings per share. The company’s revenue was up 9.6% on a year-over-year basis. nCino has set its FY 2026 guidance at 0.900-0.910 EPS and its Q4 2026 guidance at 0.210-0.220 EPS.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Citigroup reissued an “outperform” rating on shares of nCino in a report on Wednesday, August 27th. Keefe, Bruyette & Woods lifted their price objective on nCino from $34.50 to $36.00 and gave the company an “outperform” rating in a research note on Thursday. JMP Securities upped their target price on nCino from $35.00 to $41.00 and gave the stock a “market outperform” rating in a research note on Wednesday, August 27th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of nCino in a report on Wednesday, October 8th. Finally, Morgan Stanley boosted their price objective on nCino from $33.00 to $35.00 and gave the stock an “equal weight” rating in a report on Wednesday, August 27th. Three investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $32.93.

Insider Activity

In related news, CFO Gregory Orenstein sold 4,353 shares of the firm’s stock in a transaction dated Tuesday, November 4th. The stock was sold at an average price of $25.81, for a total transaction of $112,350.93. Following the transaction, the chief financial officer directly owned 461,746 shares of the company’s stock, valued at approximately $11,917,664.26. This trade represents a 0.93% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider April Rieger sold 4,731 shares of the company’s stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $25.81, for a total value of $122,107.11. Following the completion of the sale, the insider directly owned 229,774 shares of the company’s stock, valued at approximately $5,930,466.94. This represents a 2.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 3,913,865 shares of company stock valued at $117,312,830. 5.70% of the stock is owned by insiders.

Institutional Investors Weigh In On nCino

Hedge funds have recently made changes to their positions in the business. Bank of America Corp DE grew its holdings in shares of nCino by 475.1% during the 3rd quarter. Bank of America Corp DE now owns 2,513,686 shares of the company’s stock valued at $68,146,000 after purchasing an additional 2,076,579 shares during the last quarter. Long Path Partners LP lifted its stake in nCino by 61.1% in the second quarter. Long Path Partners LP now owns 4,787,869 shares of the company’s stock worth $133,917,000 after purchasing an additional 1,815,868 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its position in nCino by 50.2% during the first quarter. T. Rowe Price Investment Management Inc. now owns 4,867,463 shares of the company’s stock valued at $133,710,000 after buying an additional 1,626,446 shares during the period. Spyglass Capital Management LLC bought a new position in shares of nCino during the second quarter valued at about $44,190,000. Finally, Wellington Management Group LLP bought a new position in shares of nCino during the third quarter valued at about $36,962,000. 94.76% of the stock is currently owned by institutional investors.

nCino Stock Performance

The company has a quick ratio of 1.03, a current ratio of 1.01 and a debt-to-equity ratio of 0.24. The company has a fifty day moving average price of $25.41 and a 200 day moving average price of $27.44. The stock has a market cap of $2.68 billion, a PE ratio of -129.94, a P/E/G ratio of 15.34 and a beta of 0.53.

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.