Conestoga Capital Advisors’ Bets on nCino’s (NCNO) Durable Expansion

2 weeks ago 6

Soumya Eswaran

Fri, August 7, 2026 astatine 9:03 AM CDT 3 min read

Conestoga Capital Advisors, an plus absorption company, released its second-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The missive reports a affirmative marketplace displacement towards Small Caps, with the Russell 2000 Index achieving its champion archetypal fractional since 1991 and the Russell 2000 Growth Index up 25.7% successful Q2, fueled by AI enthusiasm and semiconductor stocks. However, marketplace enactment was uneven, mirroring the Tech Bubble: high-beta stocks outperformed portion high-quality companies lagged, affecting Conestoga's quality-focused strategies. Management expressed assurance successful semipermanent outcomes, noting that speculative enactment won't past arsenic monetary argumentation tightens and marketplace breadth improves. The steadfast remains committed to high-quality maturation businesses, expecting these to regain favour arsenic enactment broadens. The Conestoga Micro-Cap Composite achieved a coagulated 2nd 4th with a 22.16% nett return, though it underperformed the Russell Microcap Growth Index's 28.98% return. During this period, Micro-Cap Growth surpassed each large equity benchmarks, which reflects improved capitalist sentiment towards smaller-cap stocks, but the gains were chiefly driven by a constricted acceptable of high-beta, high-momentum stocks. In addition, delight cheque the Strategy's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, Conestoga Capital Advisors highlighted NCino, Inc. (NASDAQ:NCNO) arsenic a recently added presumption successful its Micro Cap Composite. NCino, Inc. (NASDAQ:NCNO) is simply a software-as-a-service institution that provides bundle solutions to fiscal institutions. On August 06, 2026, NCino, Inc. (NASDAQ:NCNO) closed astatine $18.99 per share, reflecting a marketplace capitalization of $2.08 billion. NCino, Inc. (NASDAQ:NCNO) posted a one-month instrumentality of 11.77%, portion its shares mislaid 27.49% implicit the past 52 weeks.

Conestoga Capital Advisors stated the following regarding NCino, Inc. (NASDAQ:NCNO) successful its Q2 2026 capitalist letter:

"NCino, Inc. (NASDAQ:NCNO) provides cloud-based bundle that enables banks and fiscal institutions to automate lending, relationship opening, and different halfway banking workflows. We judge the institution is good positioned to payment from expanding adoption of AI-enabled banking solutions, supported by its heavy lawsuit relationships and mission-critical platform. Growing subscription revenue, expanding profitability, and aggregate opportunities to monetize caller AI capabilities supply a imaginable runway for semipermanent growth."

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NCino, Inc. (NASDAQ:NCNO) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge money portfolios held NCino, Inc. (NASDAQ:NCNO) astatine the extremity of the archetypal quarter, compared to 47 successful the erstwhile quarter. In Q1 2026, NCino, Inc.'s (NASDAQ:NCNO) total revenues were $159.4 million, an summation of 11% twelvemonth implicit year. While we admit the imaginable of NCino, Inc. (NASDAQ:NCNO) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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