Q2 (NYSE:QTWO) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Q2 from “hold” to “buy.” The stock has a consensus “Moderate Buy” rating from analysts, with an average price target of $76.17.
• Q2 reported quarterly earnings of $0.70 per share, exceeding estimates of $0.68, while revenue reached $219.77 million, up 12.6% year over year and above expectations.
• Several hedge funds increased their Q2 positions, although insiders sold shares totaling approximately $5.74 million over the past three months.

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

QTWO has been the topic of several other research reports. UBS Group set a $68.00 price target on Q2 in a report on Friday, July 31st. Royal Bank Of Canada lifted their target price on shares of Q2 from $67.00 to $73.00 and gave the stock a "sector perform" rating in a report on Monday, August 31st. DA Davidson reaffirmed a "buy" rating and issued a $82.00 price target on shares of Q2 in a research report on Thursday, July 23rd. JPMorgan Chase & Co. boosted their price objective on Q2 from $60.00 to $72.00 and gave the stock an "overweight" rating in a research report on Monday, August 24th. Finally, Needham & Company LLC raised their target price on Q2 from $70.00 to $75.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Nine investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $76.17.

Q2 Price Performance

Shares of Q2 stock opened at $58.64 on Friday. The firm has a market cap of $3.66 billion, a price-to-earnings ratio of 41.88 and a beta of 1.34. The stock has a 50-day simple moving average of $61.04 and a 200-day simple moving average of $53.21. Q2 has a 52-week low of $40.79 and a 52-week high of $76.24.

Q2 (NYSE:QTWO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The technology company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.02. Q2 had a net margin of 10.87% and a return on equity of 17.04%. The firm had revenue of $219.77 million for the quarter, compared to analyst estimates of $216.86 million. During the same quarter last year, the firm earned $0.18 earnings per share. The company's revenue for the quarter was up 12.6% on a year-over-year basis. As a group, equities research analysts predict that Q2 will post 1.80 earnings per share for the current year.

Insider Buying and Selling

In related news, General Counsel Michael Kerr sold 636 shares of the business's stock in a transaction dated Friday, September 11th. The stock was 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 in the company, valued at $4,921,849.44. The trade was a 0.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kimberly Rutledge sold 10,000 shares of the firm'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 completion of the sale, the insider owned 113,913 shares of the company's stock, valued at $7,184,492.91. This 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 have sold a total of 87,816 shares of company stock valued at $5,740,968 over the last three months. 0.88% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Q2

A number of hedge funds have recently made changes to their positions in the business. Assenagon Asset Management S.A. lifted its position in shares of Q2 by 119.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 1,210,419 shares of the technology company's stock worth $57,253,000 after buying an additional 657,707 shares during the period. Dimensional Fund Advisors LP grew its position in Q2 by 34.7% in the first quarter. Dimensional Fund Advisors LP now owns 1,009,773 shares of the technology company's stock valued at $47,760,000 after acquiring an additional 259,912 shares during the period. The Manufacturers Life Insurance Company grew its position in Q2 by 7.8% in the first quarter. The Manufacturers Life Insurance Company now owns 698,693 shares of the technology company's stock valued at $33,048,000 after acquiring an additional 50,473 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in Q2 by 139.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 516,246 shares of the technology company's stock worth $24,418,000 after acquiring an additional 300,375 shares in the last quarter. Finally, Fort Washington Investment Advisors Inc. OH raised its stake in Q2 by 73.0% during the first quarter. Fort Washington Investment Advisors Inc. OH now owns 488,080 shares of the technology company's stock worth $23,086,000 after acquiring an additional 205,970 shares in the last quarter.

About Q2

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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