nCino (NASDAQ:NCNO) Shares Gap Up Following Strong Earnings

nCino Inc. (NASDAQ:NCNO) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $14.98, but opened at $18.37. nCino shares last traded at $16.3550, with a volume of 4,005,536 shares trading hands.

The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.16. The business had revenue of $149.67 million for the quarter, compared to analysts’ expectations of $147.41 million. nCino had a net margin of 0.87% and a return on equity of 4.75%. The firm’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.12 EPS.

nCino announced that its Board of Directors has approved a stock repurchase program on Monday, December 8th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes 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 leadership believes its stock is undervalued.

Key Stories Impacting nCino

Here are the key news stories impacting nCino this week:

• Positive Sentiment: Q4 results beat consensus — non‑GAAP EPS $0.37 vs $0.21 est and revenue $149.7M vs $147.4M; ACV grew 17% to $602.4M with a 112% ACV net retention rate, showing healthy subscription growth. GlobeNewswire release
• Positive Sentiment: Board authorized a $100M accelerated share repurchase program, which supports near‑term EPS and return of capital to shareholders. GlobeNewswire release
• Positive Sentiment: Management set fiscal 2027 free cash flow guidance ($132M–$137M) and is targeting ~10% ACV growth, giving a clearer path to cash generation and margin improvement. Seeking Alpha
• Neutral Sentiment: Analysts reacted across the board: some firms upgraded (Barclays, Piper Sandler) or kept favorable ratings, while others trimmed price targets — the mixed responses leave near‑term sentiment supportive but consensus valuations lower. Benzinga roundup
• Neutral Sentiment: Earnings call emphasized AI platform integration and ACV momentum — constructive for product positioning but requires execution to translate into sustained margin expansion. Earnings call transcript/highlights
• Negative Sentiment: Several institutions slashed price targets (Goldman, Keefe, Stephens, Baird, Truist, Needham among others) after the report — that indicates analysts reduced medium/longer‑term expectations and could cap upside until guidance proves durable. Benzinga: analysts slash forecasts
• Negative Sentiment: Profitability remains a concern (negative net margin and a negative PE), and some firms (e.g., Morgan Stanley) issued cautious outlooks — investors may wait for sustained margin improvement and FCF delivery before re‑rating the stock materially higher. MarketBeat earnings summary

Analysts Set New Price Targets

NCNO has been the subject of several recent research reports. Keefe, Bruyette & Woods decreased their price target on nCino from $36.00 to $24.00 and set an “outperform” rating for the company in a report on Wednesday. UBS Group restated a “buy” rating and set a $36.00 price objective on shares of nCino in a research note on Tuesday, December 9th. Truist Financial cut their price objective on shares of nCino from $27.00 to $19.00 and set a “hold” rating on the stock in a report on Wednesday. Barclays upped their target price on shares of nCino from $21.00 to $22.00 and gave the stock an “overweight” rating in a research note on Wednesday. Finally, BTIG Research initiated coverage on shares of nCino in a research report on Tuesday, December 16th. They set a “neutral” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $26.07.

Insider Activity at nCino

In related news, CEO Sean Desmond sold 16,047 shares of nCino stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $18.68, for a total transaction of $299,757.96. Following the sale, the chief executive officer directly owned 602,550 shares in the company, valued at approximately $11,255,634. This trade represents a 2.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider April Rieger sold 8,078 shares of the business’s stock in a transaction 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 in the company, valued at approximately $4,141,281.28. This represents a 3.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 69,803 shares of company stock valued at $1,345,743 in the last ninety days. Insiders own 5.70% of the company’s stock.

Hedge Funds Weigh In On nCino

Several institutional investors have recently added to or reduced their stakes in NCNO. Farther Finance Advisors LLC increased its holdings in nCino by 186.4% during the third quarter. Farther Finance Advisors LLC now owns 948 shares of the company’s stock worth $26,000 after buying an additional 617 shares during the last quarter. CWM LLC boosted its stake in nCino by 255.8% in the fourth quarter. CWM LLC now owns 1,142 shares of the company’s stock valued at $29,000 after acquiring an additional 821 shares during the last quarter. Advisors Asset Management Inc. grew its position in shares of nCino by 68.5% during the 2nd quarter. Advisors Asset Management Inc. now owns 1,127 shares of the company’s stock valued at $32,000 after acquiring an additional 458 shares during the period. AlphaQuest LLC grew its position in shares of nCino by 5,022.2% during the 3rd quarter. AlphaQuest LLC now owns 1,383 shares of the company’s stock valued at $37,000 after acquiring an additional 1,356 shares during the period. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of nCino during the 4th quarter worth approximately $38,000. Institutional investors own 94.76% of the company’s stock.

nCino Stock Performance

The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.01 and a current ratio of 1.01. The company has a market cap of $1.90 billion, a PE ratio of 331.40, a price-to-earnings-growth ratio of 2.94 and a beta of 0.61. The company’s 50 day moving average price is $17.19 and its 200-day moving average price is $22.76.

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.