nCino (NASDAQ:NCNO) Shares Gap Down After Earnings Miss

nCino, Inc. (NASDAQ:NCNO) shares gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $28.12, but opened at $18.88. nCino shares last traded at $21.55, with a volume of 3,075,645 shares.

The company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.06). nCino had a positive return on equity of 1.62% and a negative net margin of 3.46%. The business had revenue of $141.37 million during the quarter, compared to analysts’ expectations of $140.81 million. During the same quarter in the previous year, the company posted $0.21 EPS. The company’s revenue was up 14.3% compared to the same quarter last year.

nCino declared that its board has authorized a stock repurchase program on Tuesday, April 1st that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to reacquire up to 3.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on NCNO shares. Needham & Company LLC reduced their price objective on nCino from $45.00 to $28.00 and set a “buy” rating on the stock in a research report on Wednesday. Keefe, Bruyette & Woods lowered their price target on shares of nCino from $44.00 to $40.00 and set an “outperform” rating for the company in a report on Friday, March 28th. Piper Sandler decreased their target price on shares of nCino from $38.00 to $28.00 and set a “neutral” rating on the stock in a research report on Wednesday. Stephens reiterated an “equal weight” rating and issued a $38.00 price target on shares of nCino in a report on Thursday, March 20th. Finally, Barclays raised nCino from an “equal weight” rating to an “overweight” rating and set a $44.00 price objective for the company in a research report on Monday, January 6th. Nine analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, nCino currently has an average rating of “Hold” and a consensus target price of $34.21.

Insider Activity

In related news, insider April Rieger sold 4,325 shares of the stock in a transaction on Tuesday, February 4th. The stock was sold at an average price of $32.60, for a total value of $140,995.00. Following the completion of the sale, the insider now directly owns 145,953 shares in the company, valued at approximately $4,758,067.80. This represents a 2.88 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Sean Desmond sold 5,034 shares of the business’s stock in a transaction dated Tuesday, February 4th. The stock was sold at an average price of $32.60, for a total value of $164,108.40. Following the transaction, the chief executive officer now owns 306,477 shares in the company, valued at approximately $9,991,150.20. This represents a 1.62 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 86,877 shares of company stock valued at $2,963,893. Company insiders own 28.40% of the company’s stock.

Hedge Funds Weigh In On nCino

Institutional investors and hedge funds have recently bought and sold shares of the stock. Wasatch Advisors LP raised its stake in shares of nCino by 171.9% during the fourth quarter. Wasatch Advisors LP now owns 6,177,783 shares of the company’s stock valued at $207,450,000 after purchasing an additional 3,905,802 shares during the period. Invesco Ltd. increased its stake in nCino by 3,006.0% during the 4th quarter. Invesco Ltd. now owns 2,602,497 shares of the company’s stock worth $87,392,000 after buying an additional 2,518,707 shares during the period. Massachusetts Financial Services Co. MA purchased a new position in shares of nCino during the 4th quarter valued at approximately $81,254,000. Conestoga Capital Advisors LLC acquired a new stake in shares of nCino during the fourth quarter worth approximately $70,256,000. Finally, T. Rowe Price Investment Management Inc. increased its stake in shares of nCino by 139.8% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 3,241,017 shares of the company’s stock worth $108,834,000 after buying an additional 1,889,283 shares during the last quarter. Hedge funds and other institutional investors own 94.76% of the company’s stock.

nCino Stock Down 22.3 %

The stock has a market capitalization of $2.53 billion, a price-to-earnings ratio of -126.50, a PEG ratio of 5.77 and a beta of 0.66. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.95 and a quick ratio of 1.95. The firm’s fifty day moving average is $31.22 and its 200-day moving average is $34.20.

nCino Company Profile

nCino, Inc, a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem.