nCino authorizes $100 million stock repurchase

WILMINGTON, N.C. - nCino, Inc. (NASDAQ: NCNO), currently trading near its 52-week low at $28.12, today announced that its Board of Directors has authorized a new stock repurchase program. The financial software company, with a market capitalization of $3.27 billion, may buy back up to $100 million of its outstanding common stock. The initiative is seen as a move to optimize capital allocation and enhance shareholder value. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate.

Sean Desmond, nCino’s Chief Executive Officer, expressed the board’s belief that repurchasing the company’s shares is a compelling investment, considering the current stock valuations. Desmond stated that nCino is poised to generate increasing free cash flow and is focused on deploying capital to maximize shareholder returns. This strategy is supported by the company’s strong financial position, with InvestingPro data showing liquid assets exceeding short-term obligations and a healthy current ratio of 1.95.

The repurchase program allows for stock buybacks through various methods, including open market purchases and privately negotiated transactions, and may be executed under Rule 10b5-1 trading plans. The timing, volume, and pricing of the repurchases will be at the company’s discretion, depending on market conditions and other business factors. Although there is no obligation to repurchase any specific number of shares, the program is open-ended and may be adjusted, paused, or stopped at the board’s discretion.

nCino, which provides a cloud-based bank operating system, has experienced solid growth by helping financial institutions digitize their operations and improve customer experiences, with revenue growing 13.19% over the last twelve months. The company serves a global clientele, including community banks, credit unions, and some of the world’s largest financial entities. nCino’s platform integrates artificial intelligence to offer insights, aiming to streamline legacy systems for better decision-making and risk management. For deeper insights into nCino’s growth potential and financial health, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

The repurchase plan is expected to be funded through nCino’s available cash, potential credit facilities, and future cash flow. This announcement comes amid a broader trend in the tech industry where companies are using buyback strategies to manage capital efficiently.

This news is based on a press release statement from nCino, Inc., and reflects the company’s current plans and expectations. It should be noted that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected.

In other recent news, nCino Inc. announced its acquisition of Sandbox Banking for $52.5 million in cash, with a potential additional earn-out of $10 million. This strategic move aims to enhance nCino’s data integration capabilities, offering financial institutions a more streamlined approach to digital transformation projects. The acquisition is expected to bolster nCino’s product offerings and potentially increase revenue. Analysts from JMP Securities maintained a Market Outperform rating for nCino, with a price target of $43, reflecting confidence in the company’s growth trajectory post-acquisition.

Meanwhile, Raymond James also retained an Outperform rating, adjusting their price target to $42, expressing optimism about nCino’s future growth potential despite some market challenges. Keefe, Bruyette & Woods reduced their price target for nCino to $40 while maintaining an Outperform rating, citing revised growth expectations for fiscal year 2026. The firm noted that the company’s slower organic subscription revenue growth is a deviation from its initial targets, yet still sees an attractive risk-reward situation.

Investors are keenly awaiting nCino’s upcoming fiscal fourth-quarter 2025 results, set to be reported on April 1st, which could provide further insights into the company’s performance and future prospects. As nCino navigates a changing market landscape, these recent developments highlight the company’s strategic efforts to strengthen its position and potential for continued growth.

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