Q2 (NYSE:QTWO) Hits New 52-Week High - Still a Buy?

Key Points

• Q2 Holdings reached a new 52-week high, trading as high as $76.37; its shares were recently at $74.896.
• The company beat quarterly expectations, reporting EPS of $0.74 versus $0.72 forecast and revenue of $225.77 million versus $221.23 million expected. Revenue rose 11.9% year over year.
• Analyst sentiment was broadly positive: MarketBeat reported a “Moderate Buy” consensus and an average price target of $78.33, while some insiders sold shares during the quarter.

Q2 Holdings, Inc. (NYSE:QTWO - Get Free Report) hit a new 52-week high during mid-day trading on Thursday. The company traded as high as $76.37 and last traded at $74.8960, with a volume of 189,964 shares trading hands. The stock had previously closed at $74.47.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Stifel Nicolaus increased their price objective on shares of Q2 from $75.00 to $85.00 and gave the company a "buy" rating in a report on Thursday, October 29th. Royal Bank Of Canada lifted their target price on Q2 from $73.00 to $75.00 and gave the stock a "sector perform" rating in a report on Thursday, October 29th. Wall Street Zen downgraded Q2 from a "buy" rating to a "hold" rating in a research report on Sunday, October 18th. Stephens assumed coverage on Q2 in a research note on Thursday, October 15th. They set an "overweight" rating and a $74.00 price target for the company. Finally, Needham & Company LLC raised their price target on Q2 from $75.00 to $85.00 and gave the company a "buy" rating in a report on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $78.33.

Q2 Trading Up 0.9%

The firm has a market capitalization of $4.64 billion, a PE ratio of 44.39 and a beta of 1.36. The business's 50 day simple moving average is $61.92 and its 200 day simple moving average is $54.81.

Q2 (NYSE:QTWO - Get Free Report) last announced its earnings results on Wednesday, October 28th. The technology company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.02. Q2 had a net margin of 12.66% and a return on equity of 17.85%. The firm had revenue of $225.77 million for the quarter, compared to analysts' expectations of $221.23 million. During the same period in the prior year, the company earned $0.23 EPS. The business's revenue was up 11.9% compared to the same quarter last year. Analysts forecast that Q2 Holdings, Inc. will post 1.88 earnings per share for the current year.

Insider Buying and Selling at Q2

In related news, CFO Jonathan Price sold 77,180 shares of Q2 stock in a transaction dated 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 directly owned 207,633 shares of the company's stock, valued at approximately $13,643,564.43. The trade was a 27.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Kimberly Rutledge sold 10,000 shares of the company's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $63.07, for a total transaction of $630,700.00. Following the transaction, the insider owned 113,913 shares in the company, valued at $7,184,492.91. The trade was a 8.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 87,816 shares of company stock worth $5,740,968 over the last quarter. Insiders own 0.88% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of QTWO. Root Financial Partners LLC purchased a new stake in shares of Q2 in the 1st quarter worth $25,000. Optiver Holding B.V. increased its stake in shares of Q2 by 1,578.9% during the first quarter. Optiver Holding B.V. now owns 638 shares of the technology company's stock valued at $30,000 after buying an additional 600 shares during the period. Allworth Financial LP increased its stake in shares of Q2 by 48.1% during the second quarter. Allworth Financial LP now owns 1,120 shares of the technology company's stock valued at $54,000 after buying an additional 364 shares during the period. Covestor Ltd raised its holdings in shares of Q2 by 177.5% in the third quarter. Covestor Ltd now owns 1,157 shares of the technology company's stock valued at $64,000 after acquiring an additional 740 shares in the last quarter. Finally, Harbor Investment Advisory LLC bought a new stake in shares of Q2 in the second quarter valued at about $61,000.

Q2 Company Profile

Q2 Holdings, Inc is a financial technology company that provides cloud-based software to banks, credit unions and other financial institutions. Its platform is designed to help these organizations deliver digital banking experiences, manage customer relationships and expand access to financial services through online and mobile channels.

The company's products and services include digital banking, account opening, lending and loan origination, payments, data and analytics, financial crime prevention, and tools for managing customer engagement.

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