This trade activity should not be overlooked: nCino Inc. (NCNO)

nCino Inc. (NASDAQ: NCNO) stock fell -2.64% on Monday to $26.55 against a previous-day closing price of $27.27. With 2.07 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.68 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $26.95 whereas the lowest price it dropped to was $26.20. The 52-week range on NCNO shows that it touched its highest point at $55.40 and its lowest point at $22.97 during that stretch. It currently has a 1-year price target of $36.17.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NCNO was down-trending over the past week, with a drop of -3.24%, but this was up by 3.15% over a month. Three-month performance dropped to -11.91% while six-month performance fell -18.56%. The stock lost -38.64% in the past year, while it has gained 0.42% so far this year. A look at the trailing 12-month EPS for NCNO yields -0.81 with Next year EPS estimates of 0.35. For the next quarter, that number is -0.05. This implies an EPS growth rate of -10.60% for this year and 318.80% for next year.

Float and Shares Shorts:

At present, 110.90 million NCNO shares are outstanding with a float of 109.17 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.56 million, which was 5.02% higher than short shares on Sep 14, 2022. In addition to Mr. Pierre Naude as the firm’s Co-Founder & Chairman, Mr. Joshua L. Glover serves as its Pres & Chief Revenue Officer.

Institutional Ownership:

Through their ownership of 89.42% of NCNO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.20% of NCNO, in contrast to 28.57% held by mutual funds. Shares owned by individuals account for 25.98%. As the largest shareholder in NCNO with 7.09% of the stake, HMI Capital Management LP holds 7,872,455 shares worth 7,872,455. A second-largest stockholder of NCNO, The Vanguard Group, Inc., holds 6,984,694 shares, controlling over 6.29% of the firm’s shares. Kayne Anderson Rudnick Investment is the third largest shareholder in NCNO, holding 5,774,524 shares or 5.20% stake. With a 2.86% stake in NCNO, the Virtus KAR Small Cap Growth Fund is the largest stakeholder. A total of 3,174,809 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.00% of NCNO stock, is the second-largest Mutual Fund holder. It holds 2,215,710 shares valued at 58.58 million. Brown Capital Management – Small holds 1.69% of the stake in NCNO, owning 1,879,087 shares worth 49.68 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NCNO since 16 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NCNO analysts setting a high price target of $45.00 and a low target of $30.00, the average target price over the next 12 months is $35.46. Based on these targets, NCNO could surge 69.49% to reach the target high and rise by 12.99% to reach the target low. Reaching the average price target will result in a growth of 33.56% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NCNO will report FY 2023 earnings on 03/31/2023. Analysts have provided yearly estimates in a range of -$0.15 being high and -$0.18 being low. For NCNO, this leads to a yearly average estimate of -$0.16. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. nCino Inc. surprised analysts by $0.01 when it reported -$0.01 EPS against a consensus estimate of -$0.02. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is -$0.03 and the low estimate is -$0.07. The average estimate for the next quarter is thus -$0.05.

Summary of Insider Activity:

Insiders traded NCNO stock several times over the past three months with 2 Buys and 5 Sells. In these transactions, 10,347 shares were bought while 18,105 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 599,702 while 360,708 shares were sold.

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