Q2 (NYSE:QTWO) Rating Increased to Strong-Buy at Piper Sandler

Key Points

• Piper Sandler upgraded Q2 Holdings to “strong buy,” while the broader analyst consensus remains “moderate buy” with an average price target of $76.17.
• Q2’s latest quarterly results beat expectations, with earnings of $0.70 per share versus a $0.68 estimate and revenue of $219.77 million, up 12.6% year over year.
• Shares opened at $60.91, with a $3.80 billion market capitalization; company insiders sold 87,816 shares worth approximately $5.74 million over the past 90 days.

Q2 (NYSE:QTWO - Get Free Report) was upgraded by equities research analysts at Piper Sandler to a "strong-buy" rating in a report issued on Thursday, Zacks reports.

Several other brokerages also recently weighed in on QTWO. Morgan Stanley boosted their price objective on shares of Q2 from $63.00 to $68.00 and gave the stock an "equal weight" rating in a research report on Friday, July 31st. Wall Street Zen cut shares of Q2 from a "buy" rating to a "hold" rating in a research report on Saturday, August 29th. Royal Bank Of Canada upped their price objective on shares of Q2 from $67.00 to $73.00 and gave the company a "sector perform" rating in a research note on Monday, August 31st. JPMorgan Chase & Co. lifted their target price on Q2 from $60.00 to $72.00 and gave the stock an "overweight" rating in a research report on Monday, August 24th. Finally, Weiss Ratings raised Q2 from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $76.17.

Q2 Stock Performance

NYSE:QTWO opened at $60.91 on Thursday. Q2 has a 1 year low of $40.79 and a 1 year high of $85.13. The stock has a market cap of $3.80 billion, a P/E ratio of 43.51 and a beta of 1.33. The stock has a 50-day simple moving average of $60.02 and a 200-day simple moving average of $52.09.

Q2 (NYSE:QTWO - Get Free Report) last issued its earnings results on Wednesday, July 29th. The technology company reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.68 by $0.02. The business had revenue of $219.77 million for 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%.The business's quarterly revenue was up 12.6% on a year-over-year basis. During the same quarter last year, the company earned $0.18 EPS. On average, equities research analysts predict that Q2 will post 1.84 EPS for the current year.

Insider Buying and Selling at Q2

In other news, CFO Jonathan Price sold 77,180 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $65.71, for a total value of $5,071,497.80. Following the transaction, the chief financial officer owned 207,633 shares of the company's stock, valued at approximately $13,643,564.43. The trade was a 27.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Kimberly Rutledge sold 10,000 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $63.07, for a total value of $630,700.00. Following the sale, the insider owned 113,913 shares of the company's stock, valued at $7,184,492.91. This trade represents a 8.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 87,816 shares of company stock valued at $5,740,968 in the last ninety days. Insiders own 0.88% of the company's stock.

Hedge Funds Weigh In On Q2

Institutional investors have recently bought and sold shares of the company. Root Financial Partners LLC acquired a new stake in shares of Q2 in the 1st quarter worth $25,000. Headlands Technologies LLC acquired a new position in shares of Q2 during the second quarter worth about $26,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Q2 during the third quarter worth about $26,000. Caitong International Asset Management Co. Ltd purchased a new position in Q2 during the fourth quarter worth about $27,000. Finally, Optiver Holding B.V. raised its holdings in Q2 by 1,578.9% during the first quarter. Optiver Holding B.V. now owns 638 shares of the technology company's stock worth $30,000 after purchasing an additional 600 shares in the last quarter.

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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