Q2 (NYSE:QTWO) Stock Bumped Down to Hold by Wall Street Zen

Key Points

• Wall Street Zen downgraded Q2 Holdings from “Buy” to “Hold,” although the broader analyst consensus remains “Moderate Buy” with a $74.83 average price target.
• Q2’s latest quarterly results exceeded expectations, with EPS of $0.70 versus $0.68 estimated and revenue of $219.77 million, up 12.6% year over year.
• Q2 shares opened at $61.93, while insiders sold 87,816 shares worth approximately $5.74 million over the past 90 days.

Q2 (NYSE:QTWO - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday, Wall Street Zen reports.

Other equities research analysts also recently issued reports about the stock. UBS Group set a $68.00 price target on shares of Q2 in a research note on Friday, July 31st. Stephens initiated coverage on shares of Q2 in a report on Thursday. They issued an "overweight" rating and a $74.00 price objective on the stock. Morgan Stanley raised their price objective on shares of Q2 from $63.00 to $68.00 and gave the company an "equal weight" rating in a research note on Friday, July 31st. Stifel Nicolaus lifted their target price on shares of Q2 from $70.00 to $75.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Q2 from $60.00 to $72.00 and gave the stock an "overweight" rating in a report on Monday, August 24th. Ten equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, Q2 presently has a consensus rating of "Moderate Buy" and a consensus price target of $74.83.

Q2 Price Performance

Shares of QTWO opened at $61.93 on Friday. The company has a market capitalization of $3.86 billion, a price-to-earnings ratio of 44.24 and a beta of 1.34. Q2 has a fifty-two week low of $40.79 and a fifty-two week high of $76.24. The business's 50-day moving average is $60.76 and its 200-day moving average is $53.69.

Q2 (NYSE:QTWO - Get Free Report) last released its earnings results on Wednesday, July 29th. The technology company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.68 by $0.02. The company had revenue of $219.77 million for the quarter, compared to the consensus estimate of $216.86 million. Q2 had a net margin of 10.87% and a return on equity of 17.04%. The company's revenue was up 12.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.18 EPS. Equities research analysts expect that Q2 will post 1.80 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Kimberly Rutledge sold 10,000 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $63.07, for a total transaction 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Michael S. Kerr sold 636 shares of Q2 stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $60.96, for a total value of $38,770.56. Following the transaction, the general counsel owned 80,739 shares in the company, valued at $4,921,849.44. This trade represents a 0.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 87,816 shares of company stock worth $5,740,968 over the last ninety days. 0.88% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Q2

Large investors have recently made changes to their positions in the stock. Root Financial Partners LLC acquired a new position in Q2 in the 1st quarter worth $25,000. Optiver Holding B.V. lifted its position in shares of Q2 by 1,578.9% in 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. Allworth Financial LP boosted its holdings in Q2 by 48.1% during the second quarter. Allworth Financial LP now owns 1,120 shares of the technology company's stock worth $54,000 after purchasing an additional 364 shares during the last quarter. Harbor Investment Advisory LLC acquired a new position in Q2 during the second quarter worth $61,000. Finally, Integrated Wealth Concepts LLC bought a new position in Q2 in the second quarter valued at $71,000.

Q2 Company Profile

Q2 Holdings, Inc is a financial technology company that provides cloud-based digital banking and lending solutions. Its software is designed primarily for banks, credit unions and other financial institutions seeking to deliver online and mobile banking services, automate financial workflows and improve engagement with consumers and businesses.

The company's offerings include the Q2 Digital Banking Platform, which supports digital account access and financial services, as well as tools for lending, relationship pricing, profitability management and embedded finance.

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