What Happened?
Shares of banking software provider nCino (NASDAQ: NCNO) jumped 4.9% in the afternoon session after Raymond James upgraded the stock to "Strong Buy" from "Outperform."
The investment firm maintained its $36 price target. The upgrade followed a recent pullback in nCino's stock price, which Raymond James attributed to broader economic fears, creating what the firm saw as an attractive entry point. Analysts noted several potential catalysts for the company, including platform pricing changes, improving customer retention rates, and a return of activity from large enterprise customers and international markets.
After the initial pop the shares cooled down to $24.87, up 4.7% from previous close.
Is now the time to buy nCino? Access our full analysis report here.
What Is The Market Telling Us
nCino’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 34.3% on the news that the company reported weak fourth quarter 2024 (fiscal 2025) results as its revenue and EPS guidance for next year fell short of Wall Street's estimates. The quarter was underwhelming, with sales roughly in line with expectations, while earnings missed by a wide margin. The results revealed a continued struggle to turn a profit and manage cash burn, while the guidance suggested a sharp slowdown in growth. Overall, this was a softer quarter.
nCino is down 25.6% since the beginning of the year, and at $24.87 per share, it is trading 41.7% below its 52-week high of $42.64 from November 2024. Investors who bought $1,000 worth of nCino’s shares 5 years ago would now be looking at an investment worth $305.15.
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