Q2 (NYSE:QTWO) Given Buy Rating at DA Davidson

Key Points

• DA Davidson restated a "buy" on Q2 with an $82 price target—implying roughly 56% upside—while the analyst consensus is a "Moderate Buy" with a $77.75 average target (8 Buy, 4 Hold).
• Q2's latest quarter reported $0.63 EPS (miss vs. $0.71 est.) but revenue of $216.5M beat estimates and rose 14.1% year‑over‑year, with a net margin of 8.99%.
• Company insiders have been net sellers recently—CEO Matthew Flake sold 20,613 shares, and insiders disposed of 411,087 shares (~$20.7M) in the past three months; insiders now own about 3% of the stock.

Q2 (NYSE:QTWO - Get Free Report)'s stock had its "buy" rating restated by equities researchers at DA Davidson in a research note issued to investors on Monday,Benzinga reports. They presently have a $82.00 price objective on the technology company's stock. DA Davidson's price objective would suggest a potential upside of 56.28% from the stock's previous close.

A number of other research analysts also recently weighed in on QTWO. Cantor Fitzgerald cut their price objective on Q2 from $90.00 to $80.00 and set an "overweight" rating on the stock in a research note on Thursday, February 12th. Needham & Company LLC reiterated a "buy" rating and set a $70.00 price target on shares of Q2 in a report on Thursday. Weiss Ratings reiterated a "hold (c-)" rating on shares of Q2 in a report on Tuesday, April 21st. Stephens set a $90.00 price target on Q2 in a report on Friday, January 16th. Finally, UBS Group set a $77.00 target price on shares of Q2 in a research note on Thursday. Eight research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Q2 has a consensus rating of "Moderate Buy" and a consensus price target of $77.75.

Q2 Price Performance

Shares of QTWO stock traded up $1.24 during trading on Monday, reaching $52.47. The company had a trading volume of 374,904 shares, compared to its average volume of 974,328. The firm's 50 day simple moving average is $49.10 and its two-hundred day simple moving average is $60.61. Q2 has a one year low of $44.65 and a one year high of $96.68. The company has a market capitalization of $3.28 billion, a PE ratio of 46.84 and a beta of 1.39.

Q2 (NYSE:QTWO - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The technology company reported $0.63 earnings per share 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 the consensus estimate of $214.40 million. During the same period in the previous year, the business posted $0.07 earnings per share. The firm's revenue was up 14.1% on a year-over-year basis. Analysts forecast that Q2 will post 1.64 earnings per share for the current year.

Insider Activity at Q2

In related news, CEO Matthew P. Flake sold 20,613 shares of the business's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $51.35, for a total value of $1,058,477.55. Following the sale, the chief executive officer owned 483,202 shares of the company's stock, valued at $24,812,422.70. The trade was a 4.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Kimberly Anne Rutledge sold 3,187 shares of the business's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $50.37, for a total value of $160,529.19. Following the completion of the sale, the insider directly owned 80,551 shares in the company, valued at approximately $4,057,353.87. This represents a 3.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 411,087 shares of company stock worth $20,702,472 in the last three months. Company insiders own 3.00% of the company's stock.

Institutional Trading of Q2

Several institutional investors have recently bought and sold shares of the stock. California State Teachers Retirement System boosted its stake in Q2 by 0.3% in the 2nd quarter. California State Teachers Retirement System now owns 55,842 shares of the technology company's stock valued at $5,226,000 after buying an additional 194 shares in the last quarter. Maryland State Retirement & Pension System boosted its stake in Q2 by 2.2% in the 4th quarter. Maryland State Retirement & Pension System now owns 9,174 shares of the technology company's stock valued at $662,000 after buying an additional 197 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its stake in Q2 by 1.4% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 14,300 shares of the technology company's stock valued at $1,032,000 after buying an additional 200 shares in the last quarter. Advisors Asset Management Inc. raised its position in Q2 by 35.0% in the 1st 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 last quarter. Finally, Headlands Technologies LLC bought a new position in Q2 in the 2nd quarter valued at $26,000.

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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