Latest news with #NCNO
Business Insider
20-07-2025
- Business
- Business Insider
Bank of America Securities Sticks to Its Hold Rating for nCino (NCNO)
Bank of America Securities analyst Koji Ikeda reiterated a Hold rating on nCino on July 18 and set a price target of $34.00. The company's shares closed last Friday at $30.61. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Ikeda covers the Technology sector, focusing on stocks such as Datadog, nCino, and Gitlab. According to TipRanks, Ikeda has an average return of 12.6% and a 59.05% success rate on recommended stocks. In addition to Bank of America Securities, nCino also received a Hold from TR | OpenAI – 4o's Ivy Interfayce in a report issued on July 18. However, on July 14, Robert W. Baird upgraded nCino (NASDAQ: NCNO) to a Buy. NCNO market cap is currently $3.55B and has a P/E ratio of -120.42. Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NCNO in relation to earlier this year. Last month, Spencer Lake, a Director at NCNO sold 7,119.00 shares for a total of $184,828.66.
Business Insider
16-07-2025
- Business
- Business Insider
Baird Upgrades nCino (NCNO) to Outperform, Sees 29%
Shares of nCino (NCNO), a global provider of cloud-based software solutions in the financial services industry, are gaining momentum after an upgrade from Baird. Five-star analyst Joseph Vruwink raised the firm's rating from Neutral to Outperform and lifted the price target to $38 from $30. That implies a potential upside of about 29% from the stock's recent price of $29. Vruwink cited improved macro conditions, new product traction, and go-to-market execution as reasons for a more constructive view. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with , delivered to your inbox every week. Confidence Returns as nCino Resets and Rebounds According to Baird, management appears increasingly confident, following a financial reset earlier this year that reset investor expectations. The analyst believes nCino could deliver earnings beats in the coming quarters and sees the current setup as one of the best in years. Management meetings also highlighted stronger internal execution and increased enthusiasm around product updates. Vruwink's bullish sentiment comes as a respite for nCino, which has had a tough year, down 12% year-to-date. Most of the decline occurred in March, following the company's reset of its financial outlook for fiscal 2026. Since then, the stock has bounced back and now trades within 5% to 10% of its pre-reset levels. Vruwink believes nCino is in the early stages of regaining investor confidence. The firm expects subscription growth to return to double digits and management to reach its goal of achieving the Rule of 40, which combines profit margin and revenue growth. While the stock still faces hurdles, including cautious sentiment across small-cap software names, Baird sees a favorable risk-reward at current levels. For now, the market will be watching for signs that nCino can deliver consistent execution and meet its growth targets. Is nCino a Good Stock to Buy? On the Street, analysts are split over nCino, as it is rated Moderate Buy based on 17 analyst reviews, with 7 Buy and 10 Hold ratings. The average Wall Street price target is $31.38, indicating a 5% upside. No analysts currently rate the stock a Sell.
Yahoo
25-06-2025
- Business
- Yahoo
JPMorgan Begins Coverage on nCino (NCNO) stock, Gives Neutral
nCino, Inc. (NASDAQ:NCNO) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, JPMorgan began coverage on nCino, Inc. (NASDAQ:NCNO)'s stock with a 'Neutral' rating and a price objective of $30.00. The firm saw that banks have been prioritizing functionality over configurability in nCino, Inc. (NASDAQ:NCNO)'s offerings, mainly in down-market segments. Furthermore, the company has been working to shorten project timelines via more prescriptive products and AI tools in a bid to improve profitability. A financial professional utilizing a cloud-based software application. JPMorgan believes that the digital banking space is an attractive investment arena. nCino, Inc. (NASDAQ:NCNO) is benefiting from industry experience across banking and technology, given that it was spun out as a separate company from a bank in late 2011. The firm also mentioned that nCino, Inc. (NASDAQ:NCNO) has been pivoting its focus from professional services revenue growth to improving professional services profit margins. In Q1 2026, the company's total revenues came in at $144.1 million, reflecting a rise of 13% from $128.1 million in Q1 2025, with subscription revenues for Q1 2026 coming at $125.6 million, up from $110.4 million one year ago. For Q2 2026, the company expects total revenues of between $142.0 million – $144.0 million, and subscription revenues in the range of $124.5 million – $126.5 million. nCino, Inc. (NASDAQ:NCNO) offers software solutions to financial institutions. Conestoga Capital Advisors, an asset management company, released its Q4 2024 investor letter. Here is what the fund said: 'NCino, Inc. (NASDAQ:NCNO) provides cloud-based software solutions to financial institutions to facilitate lending, account opening, and onboarding. NCNO's Bank Operating System has become the market leader in commercial lending divisions within banks. NCNO has broadened their platform to include mortgage origination, consumer lending, and small business lending. NCNO operates in a serviceable addressable market of nearly $40 billion. NCNO's revenue is 86% recurring, grows in the mid-teens range organically, and is geographically diverse with 20% coming from international markets. NCNO targets being a 'rule of 50' company and has expanded operating margins rapidly to 20%, with the goal of reaching >30%. NCNO is headquartered in Wilmington, NC.' While we acknowledge the potential of NCNO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NCNO and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
2 Unprofitable Stocks to Consider Right Now and 1 to Question
Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising. Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. That said, here are two unprofitable companies investing heavily to secure market share and one best left off your radar. Trailing 12-Month GAAP Operating Margin: -2.9% Founded in 2011 in North Carolina, nCino (NASDAQ:NCNO) makes cloud-based operating systems for banks and provides that software-as-a-service. Why Does NCNO Worry Us? Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 60.1% Suboptimal cost structure is highlighted by its history of operating margin losses nCino's stock price of $26.19 implies a valuation ratio of 5.3x forward price-to-sales. To fully understand why you should be careful with NCNO, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: -2.6% Started in 2006 by two MIT grad students, HubSpot (NYSE:HUBS) is a software-as-a-service platform that helps small and medium-sized businesses market themselves, sell, and get found on the internet. Why Do We Like HUBS? Billings growth has averaged 19.7% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases Software is difficult to replicate at scale and results in a top-tier gross margin of 84.8% Strong free cash flow margin of 18.3% enables it to reinvest or return capital consistently At $544 per share, HubSpot trades at 9x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it's free. Trailing 12-Month GAAP Operating Margin: -2.8% Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations. Why Are We Fans of WRBY? Bold push to open new stores demonstrates an ambitious strategy to establish itself in underpenetrated territories Unique assortment of products and pricing power result in a best-in-class gross margin of 55.1% Earnings per share have massively outperformed its peers over the last three years, increasing by 62.4% annually Warby Parker is trading at $21.36 per share, or 57x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
NCNO Q1 Earnings Call: Subscription Growth, AI Initiatives, and Cost Structure Changes
Bank software company nCino (NASDAQ:NCNO) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 12.5% year on year to $144.1 million. Its non-GAAP profit of $0.16 per share was in line with analysts' consensus estimates. Is now the time to buy NCNO? Find out in our full research report (it's free). Revenue: $144.1 million (12.5% year-on-year growth) Adjusted EPS: $0.16 vs analyst estimates of $0.16 (in line) Adjusted Operating Income: $24.83 million vs analyst estimates of $24.08 million (17.2% margin, 3.1% beat) Revenue Guidance for Q2 CY2025 is $143 million at the midpoint, roughly in line with what analysts were expecting Management raised its full-year Adjusted EPS guidance to $0.71 at the midpoint, a 4.4% increase Operating Margin: -1%, up from -2.9% in the same quarter last year Billings: $156.6 million at quarter end, up 13.8% year on year Market Capitalization: $3.09 billion nCino's first quarter results reflected ongoing demand for its cloud-based banking platform despite a competitive and evolving technology landscape. Management attributed performance to uptake in subscription services, especially among regional banks, as well as progress in international markets and the credit union segment. CEO Sean Desmond highlighted the importance of recently launched AI capabilities and enhanced omnichannel experiences, which were showcased at the company's annual nSight Customer Conference. The leadership team also discussed the impact of streamlined operations and product development cycles, supported by workforce reductions and more focused investment in core product areas. Looking ahead, nCino's forward guidance is anchored by its expectation that new AI-driven features and expanded platform functionality will help drive both new customer wins and greater usage among existing clients. Management believes that investments in automation, data strategy, and international expansion will be key to sustaining growth. CFO Greg Orenstein noted that recent cost-saving measures—primarily from restructuring and increased use of AI tools—are intended to preserve flexibility for future investments and margin improvement. As Desmond stated, the company aims to accelerate software delivery cycles and broaden its reach in markets like Europe and Japan, while closely monitoring the pace of adoption for its AI-based offerings. Management pointed to subscription revenue momentum, enhanced product features, and targeted efficiency initiatives as the primary drivers of first quarter performance. AI feature rollout: nCino introduced 16 new AI banking adviser capabilities at its nSight Customer Conference, designed to improve productivity and reduce costs for financial institution clients. Management regards these features as central to the company's long-term differentiation and future subscription revenue growth. Omnichannel platform enhancements: Upgrades to the onboarding and digital experience components of the platform were completed, offering a more unified experience for bank and credit union customers. These enhancements are available to existing clients as part of their platform upgrade with no incremental cost, which management believes could facilitate broader adoption. Restructuring and cost efficiencies: The company undertook a restructuring that reduced its global workforce by approximately 7%, targeting operational streamlining and greater efficiency in product development. Management expects to realize $24 million in gross annualized expense savings, with a portion already reflected in first quarter results. Credit union and international traction: nCino closed new deals with both an $800 million credit union and a top Japanese bank, while also securing expanded commitments from a $25 billion regional bank. Management views the credit union market and international expansion as significant growth opportunities. Professional services margin focus: Ongoing efforts to redesign products for faster implementation and increased use of AI tools are expected to gradually improve professional services margins. Management acknowledged that margin improvement will take time as legacy projects wind down and new processes are scaled up. nCino's outlook relies on increasing adoption of AI-powered solutions, operational efficiencies, and expanding sales capacity, but faces headwinds from challenging comparisons and variable customer demand. AI-driven product adoption: Management expects that recent and upcoming investments in AI capabilities, such as banking adviser and workflow automation, will drive incremental usage across the existing customer base and attract new clients. These features are positioned as a differentiator in a market where financial institutions seek efficiency and real-time data insights. Operational cost savings and reinvestment: The restructuring is projected to deliver $24 million in annualized expense savings, enabling the company to both improve margins and potentially reinvest in areas like product development and sales. Leadership emphasized the intention to preserve flexibility, evaluating whether to flow additional cost savings into margin expansion or growth initiatives based on evolving market signals. Geographic and segment expansion: Continued investment in credit union-focused offerings and international markets, particularly Europe and Japan, is expected to support future revenue growth. However, management acknowledged that adoption rates and deal cycles in these regions may be variable, and that U.S. mortgage market stability remains a key factor in achieving guidance. In upcoming quarters, the StockStory team will watch (1) the pace at which financial institutions adopt nCino's new AI-enabled features and banking adviser tools, (2) progress on professional services margin improvement as legacy projects wind down and new efficiency measures take hold, and (3) the company's ability to secure additional wins in international markets and among U.S. credit unions. The impact of ongoing product integration from recent acquisitions will also be a key indicator of the company's execution. nCino currently trades at a forward price-to-sales ratio of 5.3×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
