Conestoga Capital Advisors LLC Has $133.32 Million Stock Holdings in Q2 Holdings, Inc. $QTWO

Key Points

• Conestoga Capital Advisors trimmed its Q2 stake by 4.1% to 1,847,501 shares (about 2.95% of the company), a holding valued at roughly $133.32 million and ranked as the firm's 20th largest position.
• Q1 results showed a revenue beat ($216.5M, +14.1% YoY) but an EPS miss ($0.63 vs. $0.71 consensus), which drove an intraday stock decline despite guidance that was roughly in line with Street estimates.
• Significant insider selling occurred this quarter—including CEO Matthew Flake selling 91,590 shares—with insiders selling 411,087 shares (~$20.7M) overall; insiders now hold about 0.31% of Q2.

Conestoga Capital Advisors LLC lessened its position in Q2 Holdings, Inc. (NYSE:QTWO - Free Report) by 4.1% during the 4th quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,847,501 shares of the technology company's stock after selling 78,495 shares during the period. Q2 comprises approximately 2.2% of Conestoga Capital Advisors LLC's holdings, making the stock its 20th biggest holding. Conestoga Capital Advisors LLC owned about 2.95% of Q2 worth $133,316,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Headlands Technologies LLC acquired a new stake in shares of Q2 in the 2nd quarter valued at $26,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of Q2 in the 3rd quarter valued at $26,000. Cullen Frost Bankers Inc. acquired a new stake in shares of Q2 in the 3rd quarter valued at $27,000. Salomon & Ludwin LLC acquired a new stake in shares of Q2 in the 3rd quarter valued at $30,000. Finally, First Horizon Corp acquired a new stake in shares of Q2 in the 3rd quarter valued at $37,000.

Q2 Stock Down 3.2%

Shares of NYSE QTWO opened at $50.83 on Friday. The firm's 50-day simple moving average is $49.10 and its 200 day simple moving average is $60.63. The company has a market cap of $3.17 billion, a price-to-earnings ratio of 45.39 and a beta of 1.42. Q2 Holdings, Inc. has a 12-month low of $44.65 and a 12-month high of $96.68.

Q2 (NYSE:QTWO - Get Free Report) last issued its quarterly earnings results 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). The company had revenue of $216.51 million for the quarter, compared to analyst estimates of $214.40 million. Q2 had a return on equity of 14.61% and a net margin of 8.99%.The firm's quarterly revenue was up 14.1% on a year-over-year basis. During the same quarter last year, the company earned $0.07 EPS. On average, equities analysts expect that Q2 Holdings, Inc. will post 1.56 earnings per share for the current year.

Insider Activity at Q2

In other Q2 news, CEO Matthew P. Flake sold 91,590 shares of the company's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $49.75, for a total transaction of $4,556,602.50. Following the transaction, the chief executive officer directly owned 503,815 shares in the company, valued at approximately $25,064,796.25. This represents a 15.38% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider John E. Breeden sold 68,707 shares of the company's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $51.73, for a total transaction of $3,554,213.11. Following the transaction, the insider owned 90,312 shares in the company, valued at approximately $4,671,839.76. The trade was a 43.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 411,087 shares of company stock worth $20,702,472. Insiders own 0.31% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. UBS Group set a $77.00 target price on shares of Q2 in a research note on Thursday. Morgan Stanley set a $63.00 target price on shares of Q2 in a research note on Thursday. DA Davidson reiterated a "buy" rating and set a $82.00 price target on shares of Q2 in a research report on Tuesday. JPMorgan Chase & Co. upped their price target on shares of Q2 from $75.00 to $80.00 and gave the stock an "overweight" rating in a research report on Thursday. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Q2 in a research report on Tuesday, April 21st. Eight 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.com, Q2 has a consensus rating of "Moderate Buy" and an average target price of $77.75.

Q2 News Summary

Here are the key news stories impacting Q2 this week:

• Positive Sentiment: Analyst upgrade — JPMorgan raised its price target to $80 and kept an “overweight” rating, implying meaningful upside from current levels. Benzinga
• Positive Sentiment: Needham reaffirmed a “buy” rating with a $70 target, another supportive analyst call on the stock. Benzinga
• Positive Sentiment: Revenue and margins beat/expanded — Q1 revenue of $216.5M topped consensus and rose ~14% year-over-year; GAAP gross margin improved materially versus the year-ago quarter, suggesting operational leverage. Business Wire: Q1 Results
• Neutral Sentiment: Guidance roughly in-line — Q2 and full-year revenue ranges were provided and sit near consensus (FY revenue guidance approx. $875–882M vs. Street ~876M), which limits upside surprise from guidance alone. MarketBeat: Earnings / Guidance
• Neutral Sentiment: Earnings call highlights & AI commentary — Management discussed strong revenue growth and AI-related initiatives on the call, which could support longer-term growth but may take time to translate to margins or EPS. Yahoo: Call Highlights
• Neutral Sentiment: Full call transcript and slide deck available — Useful for investors who want management commentary and KPIs in detail. Seeking Alpha: Transcript
• Negative Sentiment: EPS miss — Q1 EPS of $0.63 missed the consensus ~$0.71, which appears to be the primary driver of the intraday share weakness despite the revenue beat. Zacks: EPS Lag
• Negative Sentiment: Market reaction and volume — Shares declined today on the mixed print and EPS miss, with volume well above normal as investors adjusted positions. MarketBeat: Stock Quote

About Q2

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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