Q2 (NYSE:QTWO) Reaches New 52-Week High - Time to Buy?

Key Points

• Q2 Holdings hit a 52-week high, trading as high as $76.51; its market capitalization was approximately $4.62 billion.
• Analyst sentiment was broadly positive: the consensus rating was “Moderate Buy” with an average price target of $78.33, while several firms recently raised targets to $84–$85.
• Q2 beat quarterly earnings and revenue estimates, reporting EPS of $0.74 versus $0.72 expected and revenue of $225.77 million versus $221.23 million; revenue increased 11.9% year over year.

Q2 Holdings, Inc. (NYSE:QTWO - Get Free Report) reached a new 52-week high during trading on Wednesday. The stock traded as high as $76.51 and last traded at $75.3230, with a volume of 2,237 shares trading hands. The stock had previously closed at $75.33.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on QTWO. Wall Street Zen downgraded shares of Q2 from a "buy" rating to a "hold" rating in a report on Sunday, October 18th. Needham & Company LLC increased their price target on shares of Q2 from $75.00 to $85.00 and gave the stock a "buy" rating in a research report on Thursday, October 29th. Piper Sandler lifted their price target on shares of Q2 from $82.00 to $84.00 and gave the stock an "overweight" rating in a research note on Thursday, October 29th. Stifel Nicolaus boosted their price objective on shares of Q2 from $75.00 to $85.00 and gave the company a "buy" rating in a research report on Thursday, October 29th. Finally, Morgan Stanley upped their price objective on Q2 from $63.00 to $68.00 and gave the stock an "equal weight" rating in a research note on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $78.33.

Q2 Price Performance

The stock's 50-day simple moving average is $62.68 and its two-hundred day simple moving average is $54.99. The firm has a market capitalization of $4.62 billion, a P/E ratio of 44.29 and a beta of 1.35.

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

Insider Transactions at Q2

In related news, General Counsel Michael Kerr sold 636 shares of the stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $60.96, for a total transaction of $38,770.56. Following the completion of the sale, the general counsel owned 80,739 shares in the company, valued at approximately $4,921,849.44. This trade represents a 0.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jonathan Price sold 77,180 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $65.71, for a total value of $5,071,497.80. Following the sale, the chief financial officer owned 207,633 shares of the company's stock, valued at $13,643,564.43. This represents a 27.10% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.88% of the company's stock.

Hedge Funds Weigh In On Q2

A number of hedge funds and other institutional investors have recently modified their holdings of QTWO. Private Wealth Asset Management LLC purchased a new position in Q2 during the third quarter valued at $181,000. Global Retirement Partners LLC lifted its stake in Q2 by 2,812.5% in the 3rd quarter. Global Retirement Partners LLC now owns 3,262 shares of the technology company's stock worth $181,000 after purchasing an additional 3,150 shares in the last quarter. Edgestream Partners L.P. bought a new position in shares of Q2 during the 3rd quarter valued at about $10,865,000. Teachers Retirement System of The State of Kentucky boosted its holdings in shares of Q2 by 7.9% during the 3rd quarter. Teachers Retirement System of The State of Kentucky now owns 51,463 shares of the technology company's stock valued at $2,853,000 after purchasing an additional 3,779 shares during the last quarter. Finally, HighTower Advisors LLC purchased a new position in shares of Q2 during the third quarter valued at about $216,000.

Q2 Company Profile

Q2 Holdings, Inc. provides digital banking and financial technology solutions to banks, credit unions and other financial institutions. Its cloud-based platform helps institutions deliver online and mobile banking services to consumers and businesses. The company's offerings include digital account opening, lending, payments, data and analytics, and tools for managing customer relationships. Q2 also provides technology and services that help financial institutions connect with fintech companies and expand their digital offerings.

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