Q2 Holdings, Inc. (NYSE:QTWO) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Q2 Holdings has a consensus analyst rating of “Moderate Buy” from 10 analysts, with seven buy ratings and three hold ratings. The average 12-month price target is about $73.45.
• Recent analyst actions were mixed: Weiss Ratings reiterated a hold, Wall Street Zen downgraded the stock to hold, while UBS Group, Stifel Nicolaus, and DA Davidson maintained or set buy ratings with price targets ranging from $70 to $82.
• The stock rose 3.3% and opened at $54.60, after Q2 reported quarterly revenue above estimates but earnings per share below expectations. Revenue grew 14.1% year over year, and analysts expect full-year EPS of 1.64.

Shares of Q2 Holdings, Inc. (NYSE:QTWO - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the ten analysts that are presently covering the company, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation and seven have issued a buy recommendation on the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $73.4545.

A number of brokerages have recently weighed in on QTWO. Weiss Ratings reiterated a "hold (c-)" rating on shares of Q2 in a research report on Friday, July 17th. UBS Group set a $77.00 price objective on Q2 in a research report on Thursday, April 30th. Wall Street Zen downgraded Q2 from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Stifel Nicolaus set a $70.00 target price on Q2 in a research report on Thursday, April 30th. Finally, DA Davidson reiterated a "buy" rating and issued a $82.00 target price on shares of Q2 in a research note on Thursday.

Q2 Stock Up 3.3%

NYSE:QTWO opened at $54.60 on Friday. The company has a market cap of $3.42 billion, a PE ratio of 48.75 and a beta of 1.33. The business's 50 day moving average is $48.28 and its two-hundred day moving average is $51.88. Q2 has a 52 week low of $40.79 and a 52 week high of $92.66.

Q2 (NYSE:QTWO - Get Free Report) last released its earnings results on Wednesday, April 29th. The technology company reported $0.63 earnings per share for the quarter, missing the consensus estimate of $0.71 by ($0.08). Q2 had a net margin of 8.99% and a return on equity of 14.68%. The business had revenue of $216.51 million for the quarter, compared to the consensus estimate of $214.40 million. During the same quarter in the previous year, the firm earned $0.07 EPS. The firm's revenue for the quarter was up 14.1% on a year-over-year basis. As a group, sell-side analysts expect that Q2 will post 1.64 EPS for the current fiscal year.

Hedge Funds Weigh In On Q2

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Advisors Asset Management Inc. increased its holdings in shares of Q2 by 35.0% during the first quarter. Advisors Asset Management Inc. now owns 849 shares of the technology company's stock valued at $68,000 after purchasing an additional 220 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Q2 by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,033 shares of the technology company's stock worth $2,803,000 after purchasing an additional 1,525 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Q2 by 21.6% in the first quarter. Goldman Sachs Group Inc. now owns 537,717 shares of the technology company's stock worth $43,023,000 after buying an additional 95,440 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Q2 by 3.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 186,318 shares of the technology company's stock worth $14,907,000 after acquiring an additional 6,909 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its stake in Q2 by 592.3% in the 2nd 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 in the last quarter.

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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