Q2 Holdings, Inc. (NYSE:QTWO) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts rate Q2 Holdings a “Moderate Buy”: Nine of 13 analysts recommend buying the stock, while four advise holding it. The average 12-month price target is $76.17 versus the reported share price of $57.70.
• Q2’s latest quarterly results exceeded expectations, with EPS of $0.70 versus the $0.68 consensus estimate and revenue of $219.77 million, up 12.6% year over year.
• Company insiders sold 87,816 shares worth approximately $5.74 million over the past 90 days, including sizable sales by the CFO and another insider; insiders retain a 0.88% ownership stake.

Q2 Holdings, Inc. (NYSE:QTWO - Get Free Report) has received an average recommendation of "Moderate Buy" from the thirteen analysts that are covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation and nine have given a buy recommendation to the company. The average 12-month price target among analysts that have covered the stock in the last year is $76.17.

A number of analysts have commented on the stock. Wall Street Zen lowered shares of Q2 from a "buy" rating to a "hold" rating in a report on Saturday, August 29th. Piper Sandler reaffirmed an "overweight" rating and set a $82.00 price objective on shares of Q2 in a research note on Tuesday, September 22nd. Stifel Nicolaus upped their price objective on Q2 from $70.00 to $75.00 and gave the company a "buy" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. increased their target price on Q2 from $60.00 to $72.00 and gave the company an "overweight" rating in a research note on Monday, August 24th. Finally, Needham & Company LLC raised their target price on Q2 from $70.00 to $75.00 and gave the stock a "buy" rating in a report on Thursday, July 30th.

Insider Activity at Q2

In related news, CFO Jonathan Price sold 77,180 shares of the business's stock in a transaction that occurred on 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 completion of the transaction, the chief financial officer owned 207,633 shares in the company, valued at approximately $13,643,564.43. The trade was a 27.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kimberly Rutledge sold 10,000 shares of the company's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $63.07, for a total transaction of $630,700.00. Following the completion of the sale, the insider directly owned 113,913 shares of the company's stock, valued at $7,184,492.91. The trade was a 8.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 87,816 shares of company stock worth $5,740,968 in the last ninety days. Company insiders own 0.88% of the company's stock.

Hedge Funds Weigh In On Q2

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Root Financial Partners LLC acquired a new position in shares of Q2 in the 1st quarter valued at $25,000. Optiver Holding B.V. raised its stake in Q2 by 1,578.9% during the 1st quarter. Optiver Holding B.V. now owns 638 shares of the technology company's stock worth $30,000 after buying an additional 600 shares during the period. Allworth Financial LP lifted 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 acquiring an additional 364 shares in the last quarter. Harbor Investment Advisory LLC bought a new position in Q2 during the second quarter worth about $61,000. Finally, Integrated Wealth Concepts LLC acquired a new position in Q2 in the second quarter valued at about $71,000.

Q2 Trading Up 0.5%

Shares of NYSE QTWO opened at $57.70 on Thursday. The firm has a market capitalization of $3.60 billion, a PE ratio of 41.21 and a beta of 1.34. Q2 has a 1 year low of $40.79 and a 1 year high of $76.24. The firm's 50-day moving average is $61.10 and its 200-day moving average is $53.10.

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, topping 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 company had revenue of $219.77 million during the quarter, compared to analysts' expectations of $216.86 million. During the same quarter in the previous year, the company earned $0.18 EPS. Q2's revenue was up 12.6% on a year-over-year basis. As a group, equities research analysts anticipate that Q2 will post 1.8 earnings per share for the current fiscal year.

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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