Analysts Set Target Price of $33.94 for nCino Inc. Stock

nCino Inc. (NASDAQ: NCNO) has received a consensus target price of $33.94 from analysts, reflecting a “Moderate Buy” rating from the twenty-two research firms currently covering the stock, according to MarketBeat.com. The analysis indicates a mix of recommendations, with one analyst advising a sell, nine recommending a hold, and nine suggesting a buy. Additionally, three analysts have rated the stock as a strong buy.

Several brokerages have recently issued updates on nCino’s stock. On October 20, 2023, Raymond James Financial upgraded its rating from “outperform” to “strong buy” with a new price target of $36.00. Conversely, Weiss Ratings maintained a “sell (d-)” rating as of October 8. In previous reports on August 27, 2023, both Bank of America and JMP Securities adjusted their price targets for nCino to $38.00 and $41.00, respectively, with ratings of “neutral” and “market outperform.” Morgan Stanley also raised its target from $33.00 to $35.00, maintaining an “equal weight” rating.

Recent Earnings and Financial Performance

nCino’s stock experienced a modest increase of 1.4% following its quarterly earnings report released on August 26, 2023. The company reported earnings per share (EPS) of $0.22, surpassing the consensus estimate of $0.14 by $0.08. The firm achieved a positive return on equity of 1.18%, although it recorded a negative net margin of 5.86%. Revenue for the quarter reached $148.82 million, exceeding analysts’ expectations of $143.17 million. Year-over-year, nCino’s revenue increased by 12.4%.

Looking ahead, nCino has set its FY 2026 guidance at $0.770-$0.800 EPS, with Q3 2026 guidance projected between $0.200-$0.210 EPS. Analysts anticipate an average EPS of $0.12 for the current fiscal year.

Insider Transactions and Institutional Holdings

In company news, Director Jeff Horing sold 3,889,254 shares on September 8, 2023, at an average price of $30.00, totaling approximately $116.68 million. This transaction was disclosed in a filing with the SEC. Additionally, CEO Sean Desmond sold 10,006 shares on November 4, 2023, at an average price of $25.81, amounting to $258,254.86. Following this sale, Desmond retained ownership of 618,597 shares, valued at about $15.97 million, representing a 1.59% decrease in his overall stake.

Over the past ninety days, insiders have sold a total of 4,483,731 shares valued at approximately $135.71 million, with company insiders holding 5.70% of the stock.

A number of institutional investors have also adjusted their stakes in nCino recently. Bank of New York Mellon Corp increased its holdings by 7.2%, acquiring an additional 38,573 shares, bringing its total to 573,548 shares worth approximately $15.76 million. Xponance Inc. raised its position by 7.9%, owning 8,954 shares valued at $246,000. Other notable adjustments include the Arizona State Retirement System and Victory Capital Management Inc., which increased their holdings by 5.1% and 241.1%, respectively.

As it stands, institutional investors and hedge funds hold approximately 94.76% of nCino’s stock, reflecting strong confidence in the company’s future performance.

nCino operates as a software-as-a-service provider, delivering cloud-based applications to financial institutions globally. Its flagship product, the nCino Bank Operating System, integrates various operational aspects, including client onboarding and loan origination, into a single platform. The company continues to expand its influence within the financial technology sector.