Smith Group Asset Management LLC Takes $1.42 Million Position in Q2 Holdings, Inc. $QTWO

Key Points

• Smith Group Asset Management acquired a new 30,062-share position in Q2 Holdings worth approximately $1.42 million during the first quarter. Several other institutional investors also increased their holdings, including Vanguard, William Blair, and BNP Paribas.
• Q2 reported quarterly revenue of $216.51 million, up 14.1% year over year and above estimates, but earnings per share of $0.63 fell short of the $0.71 consensus forecast.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $73.45, although JPMorgan recently cut its target to $60 and some firms maintain Hold ratings.

Smith Group Asset Management LLC purchased a new position in Q2 Holdings, Inc. (NYSE:QTWO - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 30,062 shares of the technology company's stock, valued at approximately $1,422,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. William Blair Investment Management LLC raised 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 in the last quarter. Peregrine Capital Management LLC grew its stake in shares of Q2 by 48.7% in the 4th quarter. Peregrine Capital Management LLC now owns 143,243 shares of the technology company's stock valued at $10,336,000 after buying an additional 46,903 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of Q2 by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 7,995,133 shares of the technology company's stock valued at $576,929,000 after buying an additional 82,827 shares in the last quarter. New Age Alpha Advisors LLC acquired a new position in Q2 in the fourth quarter worth approximately $3,080,000. Finally, BNP Paribas Financial Markets increased its holdings in Q2 by 207.2% in the fourth quarter. BNP Paribas Financial Markets now owns 136,871 shares of the technology company's stock worth $9,877,000 after buying an additional 92,318 shares during the last quarter.

Q2 Stock Performance

Shares of QTWO opened at $59.09 on Wednesday. The company has a market cap of $3.70 billion, a price-to-earnings ratio of 52.76 and a beta of 1.33. The stock has a fifty day moving average price of $48.75 and a two-hundred day moving average price of $51.58. Q2 Holdings, Inc. has a 52-week low of $40.79 and a 52-week high of $92.66.

Q2 (NYSE:QTWO - Get Free Report) last announced its earnings results on Wednesday, April 29th. The technology company reported $0.63 earnings per share for the quarter, missing analysts' consensus estimates of $0.71 by ($0.08). The business had revenue of $216.51 million during the quarter, compared to analyst estimates of $214.40 million. Q2 had a net margin of 8.99% and a return on equity of 14.68%. The business's quarterly revenue was up 14.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.07 earnings per share. As a group, research analysts predict that Q2 Holdings, Inc. will post 1.64 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts have issued reports on QTWO shares. JPMorgan Chase & Co. reduced their target price on shares of Q2 from $80.00 to $60.00 and set an "overweight" rating for the company in a research note on Monday, June 22nd. UBS Group set a $77.00 price target on shares of Q2 in a report on Thursday, April 30th. Needham & Company LLC reaffirmed a "buy" rating and issued a $70.00 price objective on shares of Q2 in a research note on Thursday, April 30th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Q2 in a report on Friday, July 17th. Finally, Wall Street Zen downgraded shares of Q2 from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $73.45.

Q2 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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