The tide may be turning for nCino’s cloud-based banking software as heavyweight institutional investors significantly increase their stakes. Despite the stock’s year-to-date decline, recent portfolio disclosures reveal growing confidence among professional money managers that the worst may be over for this fintech player.
Major Funds Expand Positions
Recent regulatory filings paint a compelling picture of institutional accumulation:
- Vanguard Group boosted its holdings by 7.7%, amassing a substantial 11.67 million shares
- Sit Investment Associates made an even more aggressive move, expanding its position by 25.2% during Q1
- Invesco joined the buying spree with a 3.6% increase, bringing its total holdings to over 2.6 million shares
With institutional ownership now approaching 95% of outstanding shares, the investment community appears to be placing a concentrated bet on nCino’s future prospects.
Financial Performance Supports Optimism
The renewed interest follows solid operational results that exceeded market expectations:
Should investors sell immediately? Or is it worth buying nCino?
- Q1 2026 revenue climbed 13% year-over-year to $144.1 million
- Subscription revenue – the critical metric for SaaS companies – showed even stronger growth at 14%
Management maintains full-year EPS guidance between $0.69 and $0.72, aligning with consensus estimates. While growth has moderated from previous years, analysts see stable fundamentals, with the average price target of $31.13 suggesting significant upside potential from current levels.
Upcoming Earnings in Focus
Market participants await the August 26 earnings release with heightened interest. Recent analyst revisions have turned more favorable, with EPS estimates revised upward by 4.4%. Another strong performance could validate institutional investors’ confidence and potentially mark the beginning of a sustained recovery.
The question now is whether these major financial institutions have correctly timed their entry. The next quarterly report may provide crucial evidence about whether nCino can deliver on its promise as a cloud banking leader.
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