Summit Creek Advisors LLC Invests $4.89 Million in Q2 Holdings, Inc. $QTWO

Key Points

• Summit Creek Advisors initiated a Q2 Holdings stake worth approximately $4.89 million, acquiring 101,701 shares, or about 0.16% of the company.
• Q2 reported quarterly earnings of $0.70 per share, exceeding estimates, while revenue rose 12.6% year over year to $219.77 million. Analysts maintain a “Moderate Buy” consensus with an average price target of $74.
• Q2 shares opened at $63, below the analyst consensus target, while insiders—including the CFO—recently sold shares under a pre-arranged Rule 10b5-1 trading plan.

Summit Creek Advisors LLC acquired a new stake in shares of Q2 Holdings, Inc. (NYSE:QTWO - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 101,701 shares of the technology company's stock, valued at approximately $4,892,000. Summit Creek Advisors LLC owned about 0.16% of Q2 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the company. Headlands Technologies LLC acquired a new stake in Q2 during the 2nd quarter worth about $26,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Q2 in the third quarter valued at about $26,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Q2 in the fourth quarter valued at about $27,000. Root Financial Partners LLC acquired a new position in shares of Q2 in the first quarter valued at about $25,000. Finally, Northwestern Mutual Wealth Management Co. raised its stake in shares of Q2 by 592.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 630 shares of the technology company's stock worth $59,000 after purchasing an additional 539 shares during the last quarter.

Insider Activity at Q2

In other news, insider Kimberly Anne Rutledge sold 10,000 shares of Q2 stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $63.07, for a total transaction of $630,700.00. Following the completion of the transaction, the insider directly owned 113,913 shares of the company's stock, valued at $7,184,492.91. The trade was a 8.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jonathan Price sold 77,180 shares of the business's stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $65.71, for a total transaction of $5,071,497.80. Following the completion of the transaction, the chief financial officer owned 207,633 shares of the company's stock, valued at approximately $13,643,564.43. This represents a 27.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.88% of the stock is owned by insiders.

Q2 Stock Down 2.2%

Shares of QTWO opened at $63.00 on Wednesday. The company has a market capitalization of $3.93 billion, a price-to-earnings ratio of 45.00 and a beta of 1.30. Q2 Holdings, Inc. has a 52 week low of $40.79 and a 52 week high of $85.19. The stock's 50-day moving average price is $53.72 and its 200-day moving average price is $51.12.

Q2 (NYSE:QTWO - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The technology company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.02. Q2 had a return on equity of 17.04% and a net margin of 10.87%.The company had revenue of $219.77 million during the quarter, compared to analysts' expectations of $216.86 million. During the same period last year, the business earned $0.18 earnings per share. Q2's quarterly revenue was up 12.6% on a year-over-year basis. As a group, equities analysts anticipate that Q2 Holdings, Inc. will post 1.84 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts recently commented on QTWO shares. DA Davidson reiterated a "buy" rating and issued a $82.00 target price on shares of Q2 in a research report on Thursday, July 23rd. Morgan Stanley raised their price target on shares of Q2 from $63.00 to $68.00 and gave the stock an "equal weight" rating in a research report on Friday, July 31st. Robert W. Baird set a $74.00 price target on shares of Q2 in a research report on Thursday, April 30th. JPMorgan Chase & Co. decreased their price objective 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. Finally, Needham & Company LLC upped their price objective on shares of Q2 from $70.00 to $75.00 and gave the company a "buy" rating in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $74.00.

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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