On November 14, New York City-based Insight Holdings Group disclosed a full exit from nCino (NCNO 1.58%), selling nearly 4.5 million shares for an estimated $124.7 million.
What Happened
According to a November 14 SEC filing, Insight Holdings Group liquidated its entire holding in nCino (NCNO 1.58%) during the third quarter. The firm sold nearly 4.5 million shares, with the estimated trade value based on quarterly average pricing at $124.7 million. The fund’s reportable U.S. equity assets fell by 32% quarter over quarter, reflecting broader portfolio downsizing.
What Else to Know
Insight's nCino position previously represented 5.2% of AUM as of the prior quarter.
Top holdings after the filing:
- NYSE:HNGE: $541.3 million (33.4% of AUM)
- NASDAQ:UDMY: $266.6 million (16.5% of AUM)
- NYSE:S: $148.4 million (9.2% of AUM)
- NASDAQ:MSFT: $112.6 million (7% of AUM)
- NASDAQ:NVDA: $87 million (5.4% of AUM)
As of Wednesday, nCino shares were priced at $24.97, down 29% over the past year and well underperforming the S&P 500, which is up 12% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $586.5 million |
| Net Income (TTM) | ($21.8 million) |
| Price (as of Wednesday) | $24.97 |
| One-Year Price Change | (29%) |
Company Snapshot
- nCino offers cloud-based software applications, including the nCino Bank Operating System and SimpleNexus, focused on digitizing and automating banking processes such as client onboarding, loan management, and regulatory compliance.
- The company serves a broad range of financial institutions, including global and enterprise banks, regional and community banks, credit unions, and independent mortgage banks.
- It leverages advanced analytics and artificial intelligence to deliver automation and actionable insights across the loan lifecycle.
nCino, Inc. is a leading provider of cloud-based banking software, enabling financial institutions to streamline operations and enhance regulatory compliance. With a focus on recurring SaaS revenue and a diverse customer base, nCino positions itself as a strategic partner for banks and credit unions seeking digital transformation and operational efficiency.
Foolish Take
When a holding grows large enough, trimming or exiting can say more about risk management than fundamentals. nCino’s latest quarter showed tangible operational progress. Revenue rose 10% year over year to $152.2 million, driven by 11% subscription growth, while GAAP operating margin flipped positive to 8%. On a non-GAAP basis, operating margin expanded to 26%, up roughly 600 basis points from last year. The company also generated positive free cash flow and completed a $100 million share repurchase program, underscoring improving financial discipline.
Yet despite those improvements, the stock has lagged, down nearly 30% over the past year and trailing the broader market. That disconnect helps explain why an investor with a shrinking overall portfolio might prioritize liquidity and concentration control, especially as nCino previously represented more than 5% of assets. Within the remaining portfolio, capital is now tilted toward larger, more liquid technology and platform businesses like Microsoft and Nvidia, alongside a dominant holding in Hinge Health. For patient investors, nCino’s expanding margins and recurring revenue base still offer a long runway, but this exit highlights the volatility tolerance required when execution and share price move on different timelines.
Glossary
13F: A quarterly SEC filing required from institutional investment managers to disclose their U.S. equity holdings.
AUM (Assets Under Management): The total market value of investments managed by a fund or firm on behalf of clients.
Liquidated: Sold off an entire investment position, converting it to cash or cash equivalents.
Quarter over quarter: A comparison of financial or operational results between one fiscal quarter and the previous quarter.
Portfolio downsizing: The process of reducing the number or value of investments held within a portfolio.
Cloud-based software: Applications delivered and accessed over the internet rather than installed locally on computers.
Regulatory compliance: Adhering to laws, regulations, and guidelines relevant to a business or industry.
SaaS (Software as a Service): A software delivery model where applications are accessed online via subscription rather than purchased and installed.
TTM: The 12-month period ending with the most recent quarterly report.
Loan lifecycle: The complete process of managing a loan, from application through repayment or closure.
Actionable insights: Data-driven findings that can be used to make informed business decisions.
Digital transformation: The adoption of digital technology to improve business processes and outcomes.
