What Happened:
Shares of maker of operating system for banks nCino (NASDAQ:NCNO) fell 5.16% in the morning session after Morgan Stanley's analyst downgraded the stock's rating from Overweight (Buy) to Equal-Weight (Hold) and lowered the price target from $27 to $25. The target price implies a 3% upside to the current price.
What is the market telling us:
nCino's shares are quite volatile and over the last year have had 56 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
nCino is down 8.7% since the beginning of the year, and at $24.13 per share it is trading 48.5% below its 52-week high of $46.82 from April 2022. Investors who bought $1,000 worth of nCino's shares at the IPO in July 2020 would now be looking at an investment worth $263.46.
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