Owls Nest Just Sold Its Entire nCino Stake. Should Investors Worry?
Key Points
Sold 1,585,623 shares; estimated transaction value $29.79 million (based on quarterly average price).
Quarter-end position value decreased by $40.66 million, reflecting both share sale and price movement.
The position was previously 11.3% of the fund's assets, highlighting its prior significance before the sale.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 14, 2026, Owls Nest Partners IA, LLC sold its entire stake in nCino (NASDAQ:NCNO) , amounting to a change of 1,585,623 shares. The estimated transaction value was $29.79 million, calculated using average unadjusted closing prices from January through March 2026. The quarter-end value of the position declined by $40.66 million, a figure that includes stock price movements during the period.
What else to know
- The fund sold out of its nCino holding, which was previously 11.3% of 13F assets under management as of the prior quarter. The position now represents n/a of AUM.
- Top holdings after the filing:
- NASDAQ: TBBK: $58.81 million (20.6% of AUM)
- NASDAQ: ENSG: $45.38 million (15.9% of AUM)
- NYSE: TKR: $37.83 million (13.2% of AUM)
- NYSE: WMS: $36.22 million (12.7% of AUM)
- NYSE: TGLS: $36.10 million (12.6% of AUM)
- As of May 13, 2026, nCino shares were priced at $15.33, down 35.9% over the past year, underperforming the S&P 500 by 62.4 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-13) | $15.33 |
| Market Capitalization | $2.03 billion |
| Revenue (TTM) | $5.94 million |
| Net Income (TTM) | $5.18 million |
Company Snapshot
- Offers cloud-based software solutions, including the nCino Bank Operating System and SimpleNexus, which digitize and automate banking processes for financial institutions.
- Operates as a software-as-a-service (SaaS) company, providing cloud-based software applications to financial institutions.
- Serves a global customer base of financial institutions, including enterprise banks, regional and community banks, credit unions, and independent mortgage banks.
nCino, Inc. operates at scale as a leading provider of cloud-based banking software, with a focus on process automation and regulatory compliance for financial institutions. The company's SaaS platform enables banks and credit unions to streamline operations, manage risk, and improve customer onboarding and loan origination. nCino's competitive advantage lies in its deep integration of data analytics and AI/ML capabilities, supporting digital transformation across the banking sector.
What this transaction means for investors
When an institution exits an entire stock position, investors may take notice, especially when the holding previously accounted for more than 11% of the fund’s reported portfolio.
Looking at share price movement may offer some clues. Shares of nCino have fallen significantly from their peak in August 2025. The company’s recent operating performance tells a different story, though. It reported earnings per share for the fiscal fourth quarter of 2025 that came in well above analyst expectations.
While the reasons for the sale were not disclosed, uncertainty surrounding the fintech sector may have been a factor. Investors have become increasingly focused on how artificial intelligence could reshape competitive moats and market share for software and financial technology.
For individual investors, especially those with exposure to the tech sector, the sale serves as a reminder to stay abreast of company fundamentals and industry trends in general when evaluating fintech stocks.
Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Drainage Systems and nCino. The Motley Fool has a disclosure policy.