Q2 (NYSE:QTWO) Earns "Overweight" Rating from Piper Sandler

Key Points

• Piper Sandler reiterated its “Overweight” rating on Q2 Holdings and set an $82 price target, implying 44.74% upside from the prior close.
• Analyst sentiment is broadly positive, with Q2 carrying a “Moderate Buy” consensus rating and an average price target of $76.17.
• Q2 shares fell 2.2% to $56.65, despite the company reporting quarterly EPS of $0.70 and revenue of $219.77 million, both ahead of analyst estimates.

Q2 (NYSE:QTWO - Get Free Report)'s stock had its "overweight" rating reiterated by research analysts at Piper Sandler in a research note issued on Tuesday, Benzinga reports. They currently have a $82.00 price target on the technology company's stock. Piper Sandler's price target indicates a potential upside of 44.74% from the stock's previous close.

Other research analysts have also issued reports about the stock. Needham & Company LLC upped their price objective on shares of Q2 from $70.00 to $75.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Morgan Stanley boosted their price target on shares of Q2 from $63.00 to $68.00 and gave the company an "equal weight" rating in a research report on Friday, July 31st. UBS Group set a $68.00 price target on shares of Q2 in a research note on Friday, July 31st. Zacks Research upgraded shares of Q2 from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 30th. Finally, JPMorgan Chase & Co. lifted their price objective on Q2 from $60.00 to $72.00 and gave the company an "overweight" rating in a research report on Monday, August 24th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Q2 presently has an average rating of "Moderate Buy" and an average target price of $76.17.

Q2 Stock Down 2.2%

Shares of NYSE:QTWO traded down $1.28 during midday trading on Tuesday, hitting $56.65. 154,469 shares of the stock traded hands, compared to its average volume of 875,577. The business's 50 day moving average is $60.82 and its two-hundred day moving average is $52.58. The stock has a market capitalization of $3.53 billion, a PE ratio of 40.41 and a beta of 1.33. Q2 has a one year low of $40.79 and a one year high of $79.18.

Q2 (NYSE:QTWO - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The technology company reported $0.70 EPS for the quarter, beating analysts' consensus estimates of $0.68 by $0.02. The business had revenue of $219.77 million during the quarter, compared to analyst estimates of $216.86 million. Q2 had a return on equity of 17.04% and a net margin of 10.87%.Q2's quarterly revenue was up 12.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.18 EPS. As a group, sell-side analysts forecast that Q2 will post 1.8 earnings per share for the current year.

Insider Activity at Q2

In related news, CFO Jonathan Price sold 77,180 shares of the business's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $65.71, for a total transaction of $5,071,497.80. Following the sale, the chief financial officer owned 207,633 shares of the company's stock, valued at $13,643,564.43. The trade was a 27.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Michael Kerr sold 636 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $60.96, for a total transaction of $38,770.56. Following the transaction, the general counsel directly owned 80,739 shares of the company's stock, valued at $4,921,849.44. This represents a 0.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 87,816 shares of company stock valued at $5,740,968 in the last three months. Company insiders own 0.88% of the company's stock.

Hedge Funds Weigh In On Q2

A number of hedge funds have recently bought and sold shares of QTWO. Entropy Technologies LP lifted its position in Q2 by 864.9% in the 1st quarter. Entropy Technologies LP now owns 26,902 shares of the technology company's stock valued at $1,272,000 after acquiring an additional 24,114 shares in the last quarter. New Age Alpha Advisors LLC bought a new position in shares of Q2 during the fourth quarter valued at $3,080,000. Smith Group Asset Management LLC purchased a new stake in shares of Q2 during the first quarter valued at $1,422,000. BNP Paribas Financial Markets lifted its stake in Q2 by 207.2% during the 4th quarter. BNP Paribas Financial Markets now owns 136,871 shares of the technology company's stock valued at $9,877,000 after acquiring an additional 92,318 shares during the period. Finally, Fifth Third Bancorp grew its stake in shares of Q2 by 27,165.5% in the first quarter. Fifth Third Bancorp now owns 257,114 shares of the technology company's stock worth $12,161,000 after acquiring an additional 256,171 shares during the period.

Q2 Company Profile

Q2 Holdings, Inc provides digital transformation solutions for banks, credit unions, fintech companies and other financial institutions. Its cloud-based technology is designed to help these organizations deliver digital banking experiences across online and mobile channels while supporting customer engagement, account opening and financial product access.

The company's offerings include digital banking software, lending and loan-origination technology, financial data and analytics tools, and solutions for payment, fraud and financial crime management.

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