DA Davidson Reaffirms "Buy" Rating for Q2 (NYSE:QTWO)

Key Points

• DA Davidson reaffirmed its Buy rating on Q2 and kept an $82 price target, implying about 58% upside from the stock’s current level.
• Analyst sentiment remains constructive overall, with seven Buy ratings and three Hold ratings; MarketBeat shows an average target price of $75.27 and a Moderate Buy consensus.
• Q2 reported Q1 earnings of $0.63 per share, missing expectations, but revenue rose 14.1% year over year to $216.51 million and beat estimates slightly.

Q2 (NYSE:QTWO - Get Free Report)'s stock had its "buy" rating reaffirmed by stock analysts at DA Davidson in a research note issued to investors on Monday,Benzinga reports. They presently have a $82.00 target price on the technology company's stock. DA Davidson's target price would suggest a potential upside of 58.21% from the stock's current price.

Several other research analysts also recently issued reports on the stock. Needham & Company LLC reissued a "buy" rating and set a $70.00 price objective on shares of Q2 in a research report on Thursday, April 30th. Weiss Ratings restated a "hold (c-)" rating on shares of Q2 in a research note on Tuesday, April 21st. Stifel Nicolaus set a $70.00 target price on shares of Q2 in a research note on Thursday, April 30th. Robert W. Baird set a $74.00 target price on shares of Q2 in a research note on Thursday, April 30th. Finally, Cantor Fitzgerald reduced their target price on shares of Q2 from $90.00 to $80.00 and set an "overweight" rating for the company in a research note on Thursday, February 12th. Seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Q2 presently has an average rating of "Moderate Buy" and an average target price of $75.27.

Q2 Stock Performance

Q2 stock traded up $4.48 during midday trading on Monday, hitting $51.83. 770,638 shares of the company's stock were exchanged, compared to its average volume of 947,875. Q2 has a 12-month low of $44.46 and a 12-month high of $96.68. The stock has a market cap of $3.24 billion, a price-to-earnings ratio of 46.28 and a beta of 1.34. The firm's 50 day simple moving average is $48.11 and its 200 day simple moving average is $58.50.

Q2 (NYSE:QTWO - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The technology company reported $0.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.71 by ($0.08). Q2 had a return on equity of 14.68% and a net margin of 8.99%.The business had revenue of $216.51 million for the quarter, compared to analysts' expectations of $214.40 million. During the same period in the previous year, the business posted $0.07 earnings per share. The company's revenue for the quarter was up 14.1% on a year-over-year basis. On average, equities research analysts forecast that Q2 will post 1.57 EPS for the current fiscal year.

Insider Transactions at Q2

In related news, insider John E. Breeden sold 6,076 shares of the firm's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $51.35, for a total value of $312,002.60. Following the completion of the sale, the insider owned 84,236 shares in the company, valued at $4,325,518.60. This trade represents a 6.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Kimberly Anne Rutledge sold 3,187 shares of the firm's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $50.37, for a total transaction of $160,529.19. Following the completion of the sale, the insider owned 80,551 shares of the company's stock, valued at $4,057,353.87. This trade represents a 3.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 411,484 shares of company stock valued at $20,720,329. 0.88% of the stock is owned by company insiders.

Hedge Funds Weigh In On Q2

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in QTWO. William Blair Investment Management LLC grew its holdings in shares of 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 buying an additional 553,713 shares in the last quarter. Peregrine Capital Management LLC grew its holdings in shares of Q2 by 48.7% during the fourth quarter. Peregrine Capital Management LLC now owns 143,243 shares of the technology company's stock worth $10,336,000 after buying an additional 46,903 shares in the last quarter. Principal Financial Group Inc. grew its holdings in shares of Q2 by 502.5% during the third quarter. Principal Financial Group Inc. now owns 301,917 shares of the technology company's stock worth $21,856,000 after buying an additional 251,807 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Q2 by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 7,995,133 shares of the technology company's stock worth $576,929,000 after buying an additional 82,827 shares in the last quarter. Finally, Thrivent Financial for Lutherans grew its holdings in shares of Q2 by 53.5% during the third quarter. Thrivent Financial for Lutherans now owns 46,658 shares of the technology company's stock worth $3,378,000 after buying an additional 16,263 shares in the last quarter.

Q2 Company Profile

Q2 Holdings, Inc develops and delivers cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences. The company's core offerings include the Q2 Platform, a comprehensive suite of online and mobile banking applications for retail and commercial customers, as well as digital onboarding, payments, and fraud prevention tools. Q2's platform also provides analytics and reporting capabilities designed to help financial institutions tailor products, optimize workflows, and drive engagement.

Founded in 2004 and headquartered in Austin, Texas, Q2 serves hundreds of financial institutions across the United States and Canada.

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