Anyone interested in nCino, Inc. (NASDAQ:NCNO) should probably be aware that a company insider, Matthew Hansen, recently divested US$160k worth of shares in the company, at an average price of US$26.16 each. On the bright side, that sale was only 0.3% of their holding, so we doubt it’s very meaningful, on its own.
Check out our latest analysis for nCino
nCino Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Jeffrey Lunsford, for US$3.6m worth of shares, at about US$37.02 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$28.08). So it is hard to draw any strong conclusion from it.
nCino insiders didn’t buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does nCino Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. nCino insiders own 3.7% of the company, currently worth about US$114m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The nCino Insider Transactions Indicate?
Insiders sold nCino shares recently, but they didn’t buy any. And there weren’t any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example – nCino has 2 warning signs we think you should be aware of.
Of course nCino may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
What are the risks and opportunities for nCino?
nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally.
Revenue is forecast to grow 18.8% per year
Significant insider selling over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Read More: Have Insiders Sold nCino, Inc. (NASDAQ:NCNO) Shares Recently?