Form 4: Insight Holdings Group Sells nCino Shares Under 10b5-1 Plan

Insight Holdings Group, along with affiliated entities, sold shares of nCino, Inc. common stock under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Insight Holdings Group, LLC and related entities filed a Form 4 disclosing sales of nCino, Inc. common stock on October 16 and 17, 2024.
• The sales were executed under a Rule 10b5-1 plan adopted on April 10, 2024.
• The weighted average sale price on both days was approximately $36.02 and $36.16 respectively.
• The transactions involved multiple entities including Insight SN Holdings, LLC, Insight Venture Partners (Cayman) X, L.P., Insight Venture Partners (Delaware) X, L.P., and Insight SN Holdings 2, LLC.
• Jeffrey Horing, a member of Insight Holdings Group, LLC's board of managers, serves on nCino's Board of Directors, potentially making the reporting persons 'directors by deputization'.

Sentiment

Score: 5

Explanation: Neutral sentiment. The document simply reports transactions under a pre-existing plan, without indicating any fundamental change in the company's prospects.

Positives

• The sales were executed under a pre-arranged Rule 10b5-1 plan, which can mitigate concerns about insider trading.

Risks

• Large sales by significant shareholders like Insight Holdings Group could potentially exert downward pressure on nCino's stock price.

Future Outlook

The document does not contain specific forward-looking statements regarding nCino's future performance.

Industry Context

Sales by major shareholders are common, especially among venture capital and private equity firms after a company goes public. The use of a 10b5-1 plan is a standard practice to allow for orderly sales without raising insider trading concerns.

Comparison to Industry Standards

• The use of Rule 10b5-1 trading plans is a common practice among corporate insiders and major shareholders to diversify their holdings in a public company.
• Similar sales patterns can be observed in other SaaS companies where venture capital firms gradually reduce their stakes post-IPO, such as Snowflake (SNOW) or Datadog (DDOG).

Stakeholder Impact

• The share sales could have a minor negative impact on shareholder sentiment in the short term, but the existence of a 10b5-1 plan should reassure investors that the sales are planned and not based on inside information.

Key Dates