nCino (NASDAQ:NCNO) Stock Price Down 10.5% Following Analyst Downgrade

nCino Inc. (NASDAQ:NCNO)’s share price fell 10.5% during trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $18.89 and last traded at $18.7310. 854,807 shares traded hands during trading, a decline of 52% from the average session volume of 1,787,339 shares. The stock had previously closed at $20.92.

Several other research firms have also commented on NCNO. Piper Sandler decreased their price target on shares of nCino from $34.00 to $30.00 and set a “neutral” rating for the company in a report on Thursday, December 4th. Truist Financial cut their target price on shares of nCino from $32.00 to $27.00 and set a “hold” rating on the stock in a report on Thursday, December 4th. UBS Group reaffirmed a “buy” rating and set a $36.00 target price on shares of nCino in a report on Tuesday, December 9th. Weiss Ratings reiterated a “sell (d-)” rating on shares of nCino in a research report on Thursday, January 22nd. Finally, Keefe, Bruyette & Woods boosted their price objective on nCino from $34.50 to $36.00 and gave the company an “outperform” rating in a research report on Thursday, December 4th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, nCino currently has a consensus rating of “Moderate Buy” and an average price target of $33.27.

Insider Activity at nCino

In other news, CFO Gregory Orenstein sold 10,562 shares of the business’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $18.68, for a total transaction of $197,298.16. Following the completion of the transaction, the chief financial officer directly owned 451,184 shares in the company, valued at approximately $8,428,117.12. The trade was a 2.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider April Rieger sold 8,078 shares of the stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $18.68, for a total value of $150,897.04. Following the completion of the transaction, the insider directly owned 221,696 shares of the company’s stock, valued at $4,141,281.28. This trade represents a 3.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 78,641 shares of company stock valued at $1,559,400. Company insiders own 5.70% of the company’s stock.

More nCino News

Here are the key news stories impacting nCino this week:

• Positive Sentiment: Company-level support: nCino still has a previously announced $100M share repurchase authorization (about 3.7% of shares), which can be supportive over time if executed. MarketBeat NCNO page
• Neutral Sentiment: Analyst landscape and ownership: ratings are mixed but skew toward buy (average rating “Moderate Buy”) with an average price target ~ $33.27; institutional ownership is very high (~94.8%), which can limit free-float volatility but also amplify coordinated repositioning. MarketBeat NCNO page
• Negative Sentiment: Heavy insider selling: multiple executives and a director sold shares on Feb. 3–4 — CEO Sean Desmond sold 16,047 shares (~$299.8K), CFO Gregory Orenstein sold 10,562 shares (~$197.3K), SVP April Rieger sold 8,078 shares (~$150.9K), SVP Jeanette Sellers sold tranches (2,182 and 1,330 shares), and Director Pierre Naudé sold 24,273 shares (~$453.4K). The clustered timing and size of these sales are pressuring sentiment. InsiderTrades alert
• Negative Sentiment: Analyst downgrade: Zacks Research cut NCNO from “strong-buy” to “hold,” a near-term negative catalyst that may reduce buying interest from retail channels that follow Zacks momentum. Zacks Research
• Negative Sentiment: Market commentary: coverage notes cite the insider selling as a near-term headwind and say shares are facing pressure, reinforcing short-term downside. Aktiencheck article

Hedge Funds Weigh In On nCino

Large investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in shares of nCino by 1.7% during the third quarter. Vanguard Group Inc. now owns 11,924,703 shares of the company’s stock valued at $323,279,000 after acquiring an additional 201,499 shares during the period. Long Path Partners LP lifted its holdings in shares of nCino by 61.1% in the second quarter. Long Path Partners LP now owns 4,787,869 shares of the company’s stock valued at $133,917,000 after buying an additional 1,815,868 shares during the period. Conestoga Capital Advisors LLC grew its holdings in nCino by 25.7% during the fourth quarter. Conestoga Capital Advisors LLC now owns 2,861,024 shares of the company’s stock worth $73,357,000 after acquiring an additional 585,786 shares during the period. Bank of America Corp DE raised its position in nCino by 475.1% in the third quarter. Bank of America Corp DE now owns 2,513,686 shares of the company’s stock worth $68,146,000 after acquiring an additional 2,076,579 shares in the last quarter. Finally, Spyglass Capital Management LLC lifted its holdings in nCino by 36.0% in the 3rd quarter. Spyglass Capital Management LLC now owns 2,149,090 shares of the company’s stock valued at $58,262,000 after acquiring an additional 569,166 shares during the last quarter. Institutional investors and hedge funds own 94.76% of the company’s stock.

nCino Stock Performance

The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.24. The company’s 50-day moving average price is $24.31 and its two-hundred day moving average price is $26.43. The company has a market cap of $2.06 billion, a P/E ratio of -99.83, a price-to-earnings-growth ratio of 3.71 and a beta of 0.55.

nCino (NASDAQ:NCNO) last posted its quarterly earnings results on Wednesday, December 3rd. The company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.11. The firm had revenue of $152.16 million for the quarter, compared to analyst estimates of $147.31 million. nCino had a negative net margin of 3.71% and a positive return on equity of 2.28%. The firm’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.21 earnings per share. nCino has set its FY 2026 guidance at 0.900-0.910 EPS and its Q4 2026 guidance at 0.210-0.220 EPS. As a group, equities analysts forecast that nCino Inc. will post 0.12 earnings per share for the current year.

nCino declared that its board has authorized a stock repurchase program on Monday, December 8th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 3.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

About nCino

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.