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

Key Points

• Analysts remain moderately bullish: Twelve brokerages assign Q2 Holdings a consensus “Moderate Buy” rating, including eight buys, three holds, and one strong buy. The average 12-month price target is $74, with targets ranging from $68 to $82.
• Q2 exceeded quarterly expectations: The company reported $0.70 in quarterly EPS versus a $0.68 consensus estimate, while revenue reached $219.77 million, up 12.6% year over year and above estimates.
• Insiders reduced their holdings: CFO Jonathan Price sold shares worth about $5.1 million, while another insider sold $630,700 worth of stock; insiders collectively own 0.88% of Q2 shares.

Shares of Q2 Holdings, Inc. (NYSE:QTWO - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twelve brokerages that are covering the company, MarketBeat reports. Three research analysts have rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $74.00.

QTWO has been the topic of several analyst reports. Weiss Ratings upgraded shares of Q2 from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, July 31st. 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. Robert W. Baird set a $74.00 target price on Q2 in a report on Thursday, April 30th. DA Davidson reiterated a "buy" rating and set a $82.00 target price on shares of Q2 in a research report on Thursday, July 23rd. Finally, Needham & Company LLC lifted their target price on Q2 from $70.00 to $75.00 and gave the company a "buy" rating in a research report on Thursday, July 30th.

Q2 Stock Down 2.2%

Shares of NYSE:QTWO opened at $63.00 on Wednesday. The firm's 50 day moving average price is $53.72 and its 200-day moving average price is $51.12. Q2 has a twelve month low of $40.79 and a twelve month high of $85.19. The stock has a market capitalization of $3.93 billion, a PE ratio of 45.00 and a beta of 1.30.

Q2 (NYSE:QTWO - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The technology company reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.68 by $0.02. Q2 had a net margin of 10.87% and a return on equity of 17.04%. The company had revenue of $219.77 million for the quarter, compared to the consensus estimate of $216.86 million. During the same quarter last year, the firm posted $0.18 earnings per share. The firm's revenue was up 12.6% compared to the same quarter last year. Analysts expect that Q2 will post 1.84 earnings per share for the current fiscal year.

Insider Activity

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

Hedge Funds Weigh In On Q2

Hedge funds have recently modified their holdings of the company. Headlands Technologies LLC bought a new stake in shares of Q2 during the 2nd quarter valued at $26,000. Measured Wealth Private Client Group LLC bought a new position in Q2 in the 3rd quarter worth $26,000. Caitong International Asset Management Co. Ltd bought a new position in Q2 in the 4th quarter worth $27,000. Root Financial Partners LLC purchased a new stake in Q2 in the 1st quarter worth $25,000. 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 buying 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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