Q2 Holdings, Inc. (NYSE:QTWO) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Q2 Holdings, with eight buy, two strong-buy and three hold ratings. The average 12-month price target is $76.17, above the stock’s reported $60.91 opening price.
• Q2 exceeded quarterly expectations, reporting $0.70 in EPS versus the $0.68 estimate and $219.77 million in revenue versus $216.86 million expected. Revenue increased 12.6% year over year.
• Insiders sold 87,816 shares worth approximately $5.74 million during the last quarter, while several major institutional investors—including California State Teachers’ Retirement System and Capital Research Global Investors—significantly increased their positions.

Shares of Q2 Holdings, Inc. (NYSE:QTWO - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the thirteen brokerages that are presently covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation, eight have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $76.1667.

A number of brokerages recently weighed in on QTWO. Morgan Stanley boosted their price target on shares of Q2 from $63.00 to $68.00 and gave the stock an "equal weight" rating in a report on Friday, July 31st. UBS Group set a $68.00 price objective on shares of Q2 in a report on Friday, July 31st. Piper Sandler began coverage on shares of Q2 in a research report on Thursday. They issued an "overweight" rating and a $82.00 price objective on the stock. Zacks Research upgraded shares of Q2 from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 30th. Finally, Weiss Ratings raised shares of Q2 from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, July 31st.

Insider Buying and Selling

In other Q2 news, insider Kimberly Rutledge sold 10,000 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $63.07, for a total transaction of $630,700.00. Following the completion of the transaction, the insider directly owned 113,913 shares of the company's stock, valued at approximately $7,184,492.91. This represents a 8.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jonathan Price sold 77,180 shares of the firm's stock in a transaction 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 completion of the sale, the chief financial officer directly owned 207,633 shares of the company's stock, valued at $13,643,564.43. This represents a 27.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 87,816 shares of company stock valued at $5,740,968. 0.88% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in QTWO. California State Teachers Retirement System raised its stake in Q2 by 4,299.6% in the 2nd quarter. California State Teachers Retirement System now owns 3,199,564 shares of the technology company's stock valued at $153,899,000 after acquiring an additional 3,126,840 shares during the period. Capital Research Global Investors boosted its position in Q2 by 86.2% during the fourth quarter. Capital Research Global Investors now owns 3,141,044 shares of the technology company's stock worth $226,658,000 after purchasing an additional 1,454,076 shares during the period. William Blair Investment Management LLC boosted its position in Q2 by 25.9% during the fourth quarter. William Blair Investment Management LLC now owns 2,694,718 shares of the technology company's stock worth $194,451,000 after purchasing an additional 553,713 shares during the period. Wasatch Advisors LP increased its stake in shares of Q2 by 2.9% in the third quarter. Wasatch Advisors LP now owns 2,158,053 shares of the technology company's stock worth $156,221,000 after purchasing an additional 60,016 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its stake in shares of Q2 by 119.0% in the first quarter. Assenagon Asset Management S.A. now owns 1,210,419 shares of the technology company's stock worth $57,253,000 after purchasing an additional 657,707 shares in the last quarter.

Q2 Stock Performance

Shares of QTWO stock opened at $60.91 on Friday. Q2 has a 52-week low of $40.79 and a 52-week high of $85.13. The company has a 50-day simple moving average of $60.02 and a two-hundred day simple moving average of $52.09. The company has a market capitalization of $3.80 billion, a price-to-earnings ratio of 43.51 and a beta of 1.33.

Q2 (NYSE:QTWO - Get Free Report) last issued 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. Q2 had a return on equity of 17.04% and a net margin of 10.87%.The company had revenue of $219.77 million during the quarter, compared to the consensus estimate of $216.86 million. During the same period last year, the business posted $0.18 earnings per share. Q2's revenue was up 12.6% on a year-over-year basis. On average, sell-side analysts forecast that Q2 will post 1.84 EPS for the current fiscal year.

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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