Shares of nCino (NASDAQ: NCNO) have been upgraded to a strong-buy rating by Zacks Research, reflecting a positive shift in investor sentiment. This upgrade, announced on Monday, follows a series of favorable evaluations from other financial analysts, indicating growing confidence in the company’s performance.
Several research firms have revisited their ratings for nCino recently. On the same day as Zacks’s announcement, Stephens upgraded the stock from a “hold” to an “overweight” rating. Additionally, Morgan Stanley raised its price target for nCino from $33.00 to $35.00, maintaining an “equal weight” rating as of August 27. Earlier, on July 14, Baird R W also shifted its rating to “strong-buy,” while William Blair upgraded nCino from “market perform” to “outperform” on October 10. Most recently, Raymond James Financial improved its rating from “outperform” to “strong-buy” and set a price objective of $36.00 on October 20.
As of now, the consensus among analysts indicates a robust outlook for nCino. Three analysts have rated the stock as a strong buy, while nine have given it a buy rating, nine issued a hold rating, and one recommended a sell. This results in an average rating of “Moderate Buy” with an average target price of $33.94, according to data from MarketBeat.com.
Recent Performance and Earnings Report
On August 26, nCino reported its earnings for the previous quarter, revealing earnings per share (EPS) of $0.22, surpassing analysts’ expectations of $0.14 by $0.08. The company generated revenue of $148.82 million, exceeding the consensus estimate of $143.17 million. This marked a year-over-year revenue increase of 12.4%, up from $0.14 EPS during the same quarter last year.
nCino has set its fiscal year 2026 guidance at an EPS of between $0.770 and $0.800, with third-quarter guidance projected at $0.200 to $0.210 EPS. Analysts forecast an EPS of $0.12 for the current fiscal year, reflecting cautious optimism for the company’s continued growth.
As nCino’s stock opened at $25.80 on Monday, the company’s market capitalization stood at $2.99 billion. Its financial metrics include a debt-to-equity ratio of 0.24, a quick ratio of 1.03, and a current ratio of 1.03. The stock has fluctuated between a 52-week low of $18.75 and a high of $43.20.
Insider Transactions and Institutional Holdings
In recent insider transactions, Pierre Naude, a director at nCino, sold 4,659 shares on August 4 at an average price of $27.45, totaling approximately $127,889. After this transaction, Naude retained 1,192,461 shares valued at about $32.73 million. Another insider, April Rieger, sold 3,028 shares on the same day, bringing her total ownership down to 240,523 shares valued at around $6.60 million.
Over the past 90 days, insiders have sold a total of 4,480,723 shares, amounting to approximately $135.67 million. Currently, insiders hold 5.70% of the company’s stock.
Institutional investors have also been active, with several hedge funds adjusting their positions. Robeco Institutional Asset Management B.V. increased its stake by 7.2% in the second quarter, now owning 520,000 shares valued at $14.54 million. Similarly, Select Equity Group L.P. raised its stake by an impressive 395.3% in the first quarter, acquiring an additional 211,665 shares.
Overall, institutional investors now own approximately 94.76% of nCino’s stock, signifying strong institutional confidence in the company’s future.
Founded as a software-as-a-service company, nCino specializes in providing cloud-based applications to financial institutions. Its platform, known as the nCino Bank Operating System, integrates various banking functions, including client onboarding and loan origination, into a single cloud-based solution, catering to clients both in the United States and globally.