First Trust Advisors LP Raises Stake in Q2 Holdings, Inc. $QTWO

Key Points

• First Trust Advisors increased its Q2 Holdings stake by 16.8% in the first quarter, bringing its holdings to 349,322 shares valued at approximately $16.5 million. Several other institutional investors also expanded their positions.
• Q2 reported quarterly EPS of $0.70, exceeding estimates of $0.68, while revenue reached $219.77 million, up 12.6% year over year and ahead of expectations.
• Analysts maintain a generally positive outlook, with seven Buy ratings and three Holds, resulting in a “Moderate Buy” consensus and an average price target of $73.45 versus the reported share price of $60.22.

First Trust Advisors LP boosted its stake in shares of Q2 Holdings, Inc. (NYSE:QTWO - Free Report) by 16.8% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 349,322 shares of the technology company's stock after buying an additional 50,335 shares during the quarter. First Trust Advisors LP owned approximately 0.56% of Q2 worth $16,523,000 as of its most recent SEC filing.

Other large investors have also added to or reduced their stakes in the company. Capital Research Global Investors raised its position in Q2 by 86.2% in the fourth quarter. Capital Research Global Investors now owns 3,141,044 shares of the technology company's stock worth $226,658,000 after acquiring an additional 1,454,076 shares during the period. UBS Group AG boosted its stake in Q2 by 343.5% in the third quarter. UBS Group AG now owns 1,009,946 shares of the technology company's stock valued at $73,110,000 after acquiring an additional 782,220 shares during the last quarter. Assenagon Asset Management S.A. grew 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 valued at $57,253,000 after acquiring an additional 657,707 shares during the period. Norges Bank bought a new position in shares of Q2 during the 4th quarter valued at approximately $44,960,000. Finally, William Blair Investment Management LLC increased its stake in shares of Q2 by 25.9% during the 4th 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 last quarter.

Q2 Price Performance

Q2 stock opened at $60.22 on Thursday. The firm has a market capitalization of $3.77 billion, a P/E ratio of 53.77 and a beta of 1.33. Q2 Holdings, Inc. has a one year low of $40.79 and a one year high of $92.04. The business has a fifty day moving average price of $49.01 and a 200-day moving average price of $51.51.

Q2 (NYSE:QTWO - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The technology company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.68 by $0.02. The company had revenue of $219.77 million for the quarter, compared to analyst estimates of $216.86 million. Q2 had a return on equity of 14.68% and a net margin of 8.99%.The firm's revenue for the quarter was up 12.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.18 EPS. Sell-side analysts expect that Q2 Holdings, Inc. will post 1.64 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on QTWO. DA Davidson reaffirmed a "buy" rating and issued a $82.00 price target on shares of Q2 in a report on Thursday, July 23rd. Stifel Nicolaus set a $70.00 price objective on Q2 in a report on Thursday, April 30th. Morgan Stanley set a $63.00 target price on Q2 in a research report on Thursday, April 30th. Needham & Company LLC restated a "buy" rating and issued a $70.00 target price on shares of Q2 in a research note on Thursday, April 30th. Finally, UBS Group set a $77.00 price target on Q2 in a research report on Thursday, April 30th. Seven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $73.45.

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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