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

Key Points

• Q2 Holdings has a consensus analyst rating of “Moderate Buy”, with seven buy ratings and three hold ratings among ten firms covering the stock. The average 12-month price target is about $75.27.
• The company recently reported Q1 earnings of $0.63 EPS, missing estimates of $0.71, while revenue came in slightly above expectations at $216.51 million and rose 14.1% year over year.
• Recent sentiment has been mixed, with several analysts cutting price targets and some insiders selling shares; at the same time, major institutional investors such as Vanguard and Capital Research Global Investors increased their stakes.

Shares of Q2 Holdings, Inc. (NYSE:QTWO - Get Free Report) have earned an average recommendation of "Moderate Buy" from the ten ratings firms that are currently covering the firm, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $75.2727.

A number of equities research analysts have recently commented on QTWO shares. Royal Bank Of Canada lowered their target price on Q2 from $86.00 to $67.00 and set a "sector perform" rating on the stock in a research note on Thursday, February 12th. Robert W. Baird set a $74.00 target price on shares of 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. Truist Financial dropped their price target on Q2 from $110.00 to $75.00 and set a "buy" rating on the stock in a research report on Thursday, February 12th. Finally, UBS Group set a $77.00 price objective on Q2 in a research note on Thursday, April 30th.

Q2 Price Performance

QTWO opened at $50.12 on Monday. Q2 has a fifty-two week low of $44.65 and a fifty-two week high of $96.68. The firm has a market capitalization of $3.14 billion, a PE ratio of 44.75 and a beta of 1.39. The company's 50-day moving average is $49.24 and its 200 day moving average is $60.42.

Q2 (NYSE:QTWO - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The technology company reported $0.63 EPS for the quarter, missing analysts' consensus estimates of $0.71 by ($0.08). Q2 had a net margin of 8.99% and a return on equity of 14.68%. The company had revenue of $216.51 million during the quarter, compared to analysts' expectations of $214.40 million. During the same period in the previous year, the company posted $0.07 earnings per share. The company's quarterly revenue was up 14.1% compared to the same quarter last year. As a group, analysts expect that Q2 will post 1.57 EPS for the current year.

Insider Buying and Selling at Q2

In other Q2 news, insider John E. Breeden sold 68,707 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $51.73, for a total value of $3,554,213.11. Following the transaction, the insider directly owned 90,312 shares in the company, valued at $4,671,839.76. This represents a 43.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Kimberly Anne Rutledge sold 20,948 shares of Q2 stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $51.66, for a total transaction of $1,082,173.68. Following the sale, the insider owned 88,078 shares of the company's stock, valued at approximately $4,550,109.48. The trade was a 19.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 411,087 shares of company stock worth $20,702,472. 0.88% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Q2

A number of large investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in shares of Q2 by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 7,995,133 shares of the technology company's stock valued at $576,929,000 after purchasing an additional 82,827 shares in the last quarter. Capital Research Global Investors grew its stake in shares of Q2 by 86.2% during the fourth quarter. Capital Research Global Investors now owns 3,141,044 shares of the technology company's stock valued at $226,658,000 after buying an additional 1,454,076 shares during the last quarter. William Blair Investment Management LLC lifted its stake in shares of Q2 by 25.9% in the 4th quarter. William Blair Investment Management LLC now owns 2,694,718 shares of the technology company's stock valued at $194,451,000 after acquiring an additional 553,713 shares during the last quarter. Wasatch Advisors LP grew its position in Q2 by 2.9% during the 3rd quarter. Wasatch Advisors LP now owns 2,158,053 shares of the technology company's stock worth $156,221,000 after acquiring an additional 60,016 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in shares of Q2 by 11.7% during the third quarter. Massachusetts Financial Services Co. MA now owns 2,039,416 shares of the technology company's stock valued at $147,633,000 after purchasing an additional 213,415 shares during the period.

Q2 Company Profile

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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