Morgan Stanley Cuts nCino (NASDAQ:NCNO) Price Target to $23.00

nCino (NASDAQ:NCNO) had its price target reduced by stock analysts at Morgan Stanley from $39.00 to $23.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s price objective suggests a potential upside of 8.68% from the company’s previous close.

Several other analysts have also recently weighed in on the company. UBS Group assumed coverage on nCino in a report on Monday, December 16th. They issued a “buy” rating and a $44.00 price target on the stock. William Blair cut shares of nCino from an “outperform” rating to a “market perform” rating in a research note on Wednesday. The Goldman Sachs Group lowered nCino from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $42.00 to $24.00 in a research report on Wednesday. Scotiabank reiterated a “sector perform” rating and issued a $19.00 target price (down previously from $35.00) on shares of nCino in a research report on Wednesday. Finally, Needham & Company LLC cut their price target on shares of nCino from $45.00 to $28.00 and set a “buy” rating for the company in a research report on Wednesday. Nine investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $34.21.

nCino Stock Performance

NASDAQ NCNO opened at $21.16 on Wednesday. The firm has a market cap of $2.45 billion, a P/E ratio of -121.36, a price-to-earnings-growth ratio of 5.77 and a beta of 0.66. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 0.20. The company’s 50 day moving average is $31.22 and its 200-day moving average is $34.20. nCino has a 12-month low of $18.12 and a 12-month high of $43.20.

nCino (NASDAQ:NCNO) last posted its earnings results on Tuesday, April 1st. The company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.06). The company had revenue of $141.37 million for the quarter, compared to analysts’ expectations of $140.81 million. nCino had a positive return on equity of 1.62% and a negative net margin of 3.46%. The company’s revenue was up 14.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.21 EPS. Sell-side analysts predict that nCino will post 0.12 earnings per share for the current year.

nCino announced that its Board of Directors has initiated a share repurchase plan on Tuesday, April 1st that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 3.1% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, Director Jeff Horing sold 54,876 shares of the firm’s stock in a transaction that occurred on Monday, January 6th. The stock was sold at an average price of $35.00, for a total transaction of $1,920,660.00. Following the completion of the sale, the director now directly owns 4,458,591 shares of the company’s stock, valued at approximately $156,050,685. This trade represents a 1.22 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider April Rieger sold 4,325 shares of the firm’s stock in a transaction dated Tuesday, February 4th. The stock was sold at an average price of $32.60, for a total transaction of $140,995.00. Following the completion of the transaction, the insider now directly owns 145,953 shares in the company, valued at $4,758,067.80. This represents a 2.88 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 86,877 shares of company stock valued at $2,963,893 in the last ninety days. Insiders own 28.40% of the company’s stock.

Hedge Funds Weigh In On nCino

A number of large investors have recently bought and sold shares of NCNO. Vanguard Group Inc. lifted its stake in shares of nCino by 9.6% during the 4th quarter. Vanguard Group Inc. now owns 10,830,773 shares of the company’s stock worth $363,697,000 after purchasing an additional 948,282 shares during the last quarter. Wasatch Advisors LP lifted its position 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 buying an additional 3,905,802 shares during the last quarter. Capital International Investors boosted its holdings in shares of nCino by 57.4% in the 4th quarter. Capital International Investors now owns 4,691,204 shares of the company’s stock valued at $157,531,000 after buying an additional 1,710,893 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its stake in shares of nCino by 139.8% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,241,017 shares of the company’s stock worth $108,834,000 after acquiring an additional 1,889,283 shares in the last quarter. Finally, Soma Equity Partners LP increased its position in shares of nCino by 5.7% during the fourth quarter. Soma Equity Partners LP now owns 2,917,681 shares of the company’s stock worth $97,976,000 after purchasing an additional 156,238 shares in the last quarter. Institutional investors own 94.76% of the company’s stock.

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.