Shares of nCino (NASDAQ:NCNO) have received a significant boost following multiple upgrades from financial analysts. On Monday, Zacks Research elevated its rating from “hold” to “strong-buy,” reflecting growing confidence in the company’s market performance. This follows a series of positive assessments from various institutions, indicating a broader trend of increased investor interest.
In addition to Zacks, Stephens upgraded nCino from a “hold” rating to “overweight” on the same day. Meanwhile, Morgan Stanley increased its price target on nCino from $33.00 to $35.00, maintaining an “equal weight” rating. Other firms have echoed this positive sentiment; Baird R W raised its rating to “strong-buy” on July 14, and William Blair shifted its assessment from “market perform” to “outperform” on October 10. Lastly, Raymond James Financial upgraded nCino to “strong-buy” with a price objective of $36.00 on October 20.
Analysts are generally optimistic about nCino’s future, with three research firms issuing a “strong buy” rating, nine assigning a “buy” rating, nine maintaining a “hold” rating, and one suggesting a “sell.” According to data from MarketBeat.com, the average rating currently stands at “Moderate Buy,” with a target price of $33.94.
Recent Financial Performance
On August 26, nCino reported its latest earnings, revealing earnings per share (EPS) of $0.22 for the quarter. This figure surpassed analysts’ expectations of $0.14 by $0.08. The company generated revenue of $148.82 million, exceeding the consensus estimate of $143.17 million. Year-over-year, nCino’s revenue rose by 12.4%, compared to $0.14 EPS during the same quarter last year.
nCino has set its fiscal year 2026 guidance at an EPS range of $0.770 to $0.800, with a third quarter projection of $0.200 to $0.21 EPS. Sell-side analysts predict that nCino will report an EPS of $0.12 for the current fiscal year.
Insider Transactions and Institutional Activity
In other developments, Director Pierre Naude sold 4,659 shares of nCino on August 4, at an average price of $27.45, totaling approximately $127,889.55. Following this transaction, Naude owns 1,192,461 shares valued at around $32,733,054.45. Additionally, insider April Rieger sold 3,028 shares on the same day for about $83,118.60. Over the past 90 days, insiders have sold a total of 4,480,723 shares valued at $135,667,553. Currently, insiders hold 5.70% of the company’s stock.
Several hedge funds have also made adjustments to their positions in nCino. Robeco Institutional Asset Management B.V. increased its stake by 7.2% during the second quarter, now holding 520,000 shares valued at $14,544,000. Select Equity Group L.P. raised its stake by an impressive 395.3% in the first quarter, holding 265,211 shares worth $7,285,000 after acquiring an additional 211,665 shares.
Conestoga Capital Advisors LLC also expanded its position by 24.0%, now possessing 2,669,920 shares valued at $74,678,000. Other institutional investors have similarly increased their stakes, with approximately 94.76% of nCino stock currently held by institutional investors.
Founded in 2012, nCino operates as a software-as-a-service company, offering cloud-based applications tailored for financial institutions globally. Its flagship product, the nCino Bank Operating System, integrates various banking functions such as client onboarding, loan origination, and end-to-end mortgage solutions into a single platform. As nCino continues to garner positive attention from financial analysts, its future growth prospects appear increasingly promising.
