Q2 (NYSE:QTWO) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Q2 Holdings to “Strong Buy” from “Hold.” The broader analyst consensus is “Moderate Buy,” with one Strong Buy, eight Buy, and three Hold ratings and a $74 average price target.
• Q2 shares opened at $61.00, up 3.3%, with a market capitalization of approximately $3.8 billion. The stock has traded between $40.79 and $90.08 over the past year.
• The company exceeded quarterly expectations, reporting $0.70 in earnings per share versus a $0.68 consensus estimate and $219.77 million in revenue versus $216.86 million expected; revenue increased 12.6% year over year.

Q2 (NYSE:QTWO - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Thursday,Zacks.com reports.

A number of other analysts have also commented on QTWO. DA Davidson reaffirmed a "buy" rating and set a $82.00 price objective on shares of Q2 in a research note on Thursday, July 23rd. Weiss Ratings reissued a "hold (c-)" rating on shares of Q2 in a research report on Friday, July 17th. Wall Street Zen upgraded shares of Q2 from a "hold" rating to a "buy" rating in a research report on Saturday. UBS Group set a $68.00 price objective on shares of Q2 in a research note on Friday. Finally, Needham & Company LLC boosted their target price on shares of Q2 from $70.00 to $75.00 and gave the company a "buy" rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $74.00.

Q2 Stock Up 3.3%

Shares of Q2 stock opened at $61.00 on Thursday. The stock's fifty day moving average is $49.57 and its 200-day moving average is $51.50. The firm has a market capitalization of $3.80 billion, a PE ratio of 43.57 and a beta of 1.33. Q2 has a 12-month low of $40.79 and a 12-month high of $90.08.

Q2 (NYSE:QTWO - Get Free Report) last announced its earnings results on Wednesday, July 29th. The technology company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.68 by $0.02. The business had revenue of $219.77 million during the quarter, compared to the consensus estimate of $216.86 million. Q2 had a return on equity of 17.04% and a net margin of 10.87%.Q2's revenue was up 12.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.18 earnings per share. Analysts expect that Q2 will post 1.73 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in Q2 by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 7,995,133 shares of the technology company's stock worth $576,929,000 after buying an additional 82,827 shares in the last quarter. Capital Research Global Investors grew its holdings in shares of Q2 by 86.2% during the 4th quarter. Capital Research Global Investors now owns 3,141,044 shares of the technology company's stock valued at $226,658,000 after acquiring an additional 1,454,076 shares in the last quarter. William Blair Investment Management LLC grew its holdings in shares of Q2 by 25.9% during 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 in the last quarter. Wasatch Advisors LP increased its stake in shares of Q2 by 2.9% in the third 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, Assenagon Asset Management S.A. increased its stake in shares of Q2 by 119.0% in the first quarter. Assenagon Asset Management S.A. now owns 1,210,419 shares of the technology company's stock worth $57,253,000 after acquiring an additional 657,707 shares during the last quarter.

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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