nCino (NASDAQ:NCNO) Shares Gap Down Following Weak Earnings

nCino, Inc. (NASDAQ:NCNO) shares gapped down prior to trading on Wednesday following a dissappointing 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 changing hands.

The company reported $0.12 earnings per share 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 company had revenue of $141.37 million for the quarter, compared to the consensus estimate of $140.81 million. During the same period in the previous year, the firm earned $0.21 earnings per share. The company’s revenue was up 14.3% compared to the same quarter last year.

nCino announced that its Board of Directors has authorized a share repurchase plan 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 stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages have commented on NCNO. Truist Financial downgraded shares of nCino from a “buy” rating to a “hold” rating and dropped their target price for the stock from $44.00 to $21.00 in a research note on Wednesday. Stephens reiterated an “equal weight” rating and issued a $38.00 target price on shares of nCino in a report on Thursday, March 20th. Macquarie lifted their price objective on shares of nCino from $40.00 to $43.00 and gave the company an “outperform” rating in a report on Friday, December 6th. Morgan Stanley lowered their target price on shares of nCino from $39.00 to $23.00 and set an “equal weight” rating for the company in a research note on Wednesday. Finally, Scotiabank reiterated a “sector perform” rating and set a $19.00 price objective (down from $35.00) on shares of nCino in a research note on Wednesday. Nine investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat.com, nCino currently has a consensus rating of “Hold” and a consensus price target of $34.21.

Insider Buying and Selling

In other news, Director Jeff Horing sold 54,876 shares of the stock in a transaction dated Monday, January 6th. The shares were sold at an average price of $35.00, for a total transaction of $1,920,660.00. Following the sale, the director now owns 4,458,591 shares of the company’s stock, valued at approximately $156,050,685. This represents a 1.22 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Gregory Orenstein sold 5,148 shares of nCino stock in a transaction that occurred on Tuesday, February 4th. The shares were sold at an average price of $32.60, for a total transaction of $167,824.80. Following the completion of the transaction, the chief financial officer now owns 271,744 shares of the company’s stock, valued at $8,858,854.40. This trade represents a 1.86 % 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. Corporate insiders own 28.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its position in shares of nCino by 5.4% during the 4th quarter. California State Teachers Retirement System now owns 85,835 shares of the company’s stock worth $2,882,000 after purchasing an additional 4,417 shares during the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in nCino during the 4th quarter valued at approximately $227,000. Public Employees Retirement System of Ohio lifted its position in nCino by 30.3% during the 4th quarter. Public Employees Retirement System of Ohio now owns 160,216 shares of the company’s stock worth $5,380,000 after acquiring an additional 37,260 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of nCino by 67.2% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 242,090 shares of the company’s stock valued at $8,129,000 after purchasing an additional 97,333 shares during the period. Finally, Woodline Partners LP acquired a new position in shares of nCino in the fourth quarter valued at approximately $216,000. Institutional investors and hedge funds own 94.76% of the company’s stock.

nCino Price Performance

The company has a 50 day moving average price of $31.22 and a 200 day moving average price of $34.20. 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 has a market cap of $2.53 billion, a PE ratio of -126.50, a PEG ratio of 5.77 and a beta of 0.66.

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.