In a recent transaction, Jeff Horing, a director and significant shareholder at nCino, Inc. (NASDAQ:NCNO), sold a substantial number of shares in the company. The sales occurred on two separate dates, with a total value exceeding $24 million.
On June 21, 2024, Horing sold 456,169 shares of nCino stock at an average price of $31.5998 per share. A few days later, on June 24, he disposed of another 323,332 shares, this time at a slightly lower average price of $31.5297 per share. These transactions were executed within price ranges of $31.400 to $31.815 and $31.500 to $31.765, respectively, as reported in the footnotes of the SEC filing.
The combined value of the shares sold across both transactions amounted to approximately $24,609,410. Following these sales, Horing still retains a significant holding in nCino, with over 25 million shares remaining in his possession, as indicated in the post-transaction amounts.
The shares sold by Horing are part of a complex ownership structure involving several entities. According to the SEC filing, a number of shares are held by various funds and entities affiliated with Insight Partners, a venture capital and private equity firm where Horing is a managing director.
Investors often monitor insider transactions like these for insights into executives' perspectives on their company's stock. While the reasons behind Horing's decision to sell a portion of his holdings are not disclosed in the SEC filing, the transactions are duly recorded and the details provided for regulatory purposes and public transparency.
In other recent news, nCino, Inc. reported record-breaking gross sales for the first quarter of fiscal year 2025, with total revenues standing at $128.1 million, marking a 13% year-over-year growth. This robust performance was propelled by strong performance in the U.S. enterprise, community, and regional markets. The company also forecasted a 50% increase in net sales for fiscal year 2025, with subscription revenues accounting for 86% of the total. Analysts from both Barclays Capital Inc. and Morgan Stanley & Co. LLC have given nCino an "Equal Weight" stock rating, reflecting a more reasonable valuation and a focus on margin/free cash flow expansion.
In addition to its strong earnings, nCino has shown improved Recognized Purchase Obligations (RPO), indicating an uptick in demand from U.S. enterprise banks. Furthermore, the company has managed to maintain its position in a competitive landscape despite some challenges, and has seen significant growth in new markets like Japan. These recent developments suggest potential for revenue acceleration in the future, as nCino continues to navigate the dynamic fintech space.
InvestingPro Insights
As nCino, Inc. (NASDAQ:NCNO) witnesses significant insider transactions, market participants are keeping a close eye on the company's financial health and future prospects. According to InvestingPro data, nCino's market capitalization stands at $3.62 billion, reflecting the company's substantial size in the financial technology sector. Despite a challenging market environment, nCino's revenue has grown by 14.77% over the last twelve months as of Q1 2025, showcasing its ability to expand its top-line figures.
InvestingPro Tips indicate that nCino is expected to see net income growth this year, which could signal improving profitability ahead. This is particularly noteworthy considering that the company was not profitable over the last twelve months. Additionally, analysts have revised their earnings estimates downwards for the upcoming period, suggesting that investors may need to recalibrate their expectations. The company operates with a moderate level of debt, which could provide it with the flexibility to navigate through uncertain economic times.
For those interested in more detailed analysis, InvestingPro offers a suite of additional tips to help investors make informed decisions. Currently, there are 7 more InvestingPro Tips available for nCino, which can be accessed by visiting https://www.investing.com/pro/NCNO. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While insider sales can sometimes raise questions about a company's outlook, the data and tips provided by InvestingPro help paint a broader picture of nCino's financial trajectory and market position.
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