North Reef Capital Management LP Lowers Stock Position in Q2 Holdings, Inc. $QTWO

Key Points

• North Reef Capital Management cut its Q2 Holdings stake by 48.9% in the first quarter, selling 594,186 shares and ending with 620,814 shares valued at about $29.4 million.
• Q2 reported mixed quarterly results: EPS of $0.63 missed estimates, while revenue of $216.5 million came in slightly above expectations and rose 14.1% year over year.
• Wall Street remains generally positive on QTWO, with seven Buy ratings, three Hold ratings, and an average price target of $73.45, even as one firm recently downgraded the stock to Hold.

North Reef Capital Management LP trimmed its holdings in Q2 Holdings, Inc. (NYSE:QTWO - Free Report) by 48.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 620,814 shares of the technology company's stock after selling 594,186 shares during the quarter. Q2 makes up about 1.0% of North Reef Capital Management LP's holdings, making the stock its 23rd biggest position. North Reef Capital Management LP owned 0.99% of Q2 worth $29,365,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Capital Research Global Investors grew its position in Q2 by 86.2% during the 4th 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 last quarter. UBS Group AG raised its holdings in shares of 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 buying an additional 782,220 shares during the last quarter. Assenagon Asset Management S.A. raised its holdings 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 valued at $57,253,000 after buying an additional 657,707 shares during the last quarter. Norges Bank acquired a new stake in shares of Q2 during the fourth quarter worth about $44,960,000. Finally, William Blair Investment Management LLC boosted its stake 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 during the period.

Q2 Stock Performance

Q2 stock opened at $54.60 on Friday. Q2 Holdings, Inc. has a one year low of $40.79 and a one year high of $92.66. The business has a fifty day moving average of $48.28 and a two-hundred day moving average of $51.88. The company has a market cap of $3.42 billion, a P/E ratio of 48.75 and a beta of 1.33.

Q2 (NYSE:QTWO - Get Free Report) last issued its earnings results on Wednesday, April 29th. The technology company reported $0.63 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 analysts' expectations of $214.40 million. Q2 had a return on equity of 14.68% and a net margin of 8.99%.Q2's revenue for the quarter was up 14.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.07 earnings per share. Sell-side analysts predict that Q2 Holdings, Inc. will post 1.64 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research firms have commented on QTWO. Morgan Stanley set a $63.00 price objective on Q2 in a research note on Thursday, April 30th. Stifel Nicolaus set a $70.00 target price on Q2 in a research note on Thursday, April 30th. Wall Street Zen lowered Q2 from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. UBS Group set a $77.00 target price on Q2 in a report on Thursday, April 30th. Finally, DA Davidson restated a "buy" rating and set a $82.00 price target on shares of Q2 in a research note on Thursday. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $73.45.

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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