NCNO stock touches 52-week low at $18.99 amid market shifts

Published 02/04/2025, 14:32
NCNO stock touches 52-week low at $18.99 amid market shifts

In a challenging market environment, shares of cloud banking leader Ncino , Inc. (NASDAQ:NCNO) have reached a 52-week low, dipping to $18.99. The company, currently valued at $3.26 billion, maintains strong fundamentals with a healthy 60.25% gross profit margin and liquid assets exceeding short-term obligations, according to InvestingPro data. This latest price movement reflects a significant downturn from the company’s previous performance, marking a -19.89% change over the past year. Despite the decline, the company has maintained 13.19% revenue growth and shows promising prospects, with analysts expecting net income growth this year. Investors are closely monitoring NCNO as it navigates through the volatile financial technology sector, which has seen widespread adjustments in valuations amidst shifting investor sentiment and regulatory landscapes. For deeper insights, InvestingPro offers additional analysis and 7 more key tips for NCNO. The company’s journey to its current 52-week low underscores the broader market trends affecting tech stocks and the importance of adaptive business strategies in the face of economic headwinds. Based on InvestingPro’s Fair Value analysis, NCNO currently appears undervalued, suggesting potential opportunity for value investors.

In other recent news, nCino Inc. has reported its fourth-quarter financial results, revealing a revenue of $141.4 million, which marks a 14% increase from the previous year and slightly exceeds the consensus estimate of $140.9 million. Subscription revenue also rose to $125.0 million, surpassing the expected $123.7 million. However, the company’s non-GAAP earnings per share fell short of expectations, coming in at $0.12 compared to the anticipated $0.19, partly due to foreign exchange headwinds. Following these results, several analysts have adjusted their outlook on nCino. Goldman Sachs downgraded the stock rating to Neutral and lowered the price target to $24, citing internal execution challenges and external market factors. Needham maintained a Buy rating but reduced the price target to $28, noting a softer revenue outlook due to foreign exchange and mortgage sector challenges. Citizens JMP lowered its price target to $32 while keeping a Market Outperform rating, highlighting strong billing performance despite mixed earnings results. Barclays (LON:BARC) also cut the price target to $24 but retained an Overweight rating, focusing on nCino’s Annual Contract Value growth. Raymond (NSE:RYMD) James adjusted its price target to $32, maintaining an Outperform rating and expressing confidence in nCino’s long-term growth prospects despite current challenges.

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