Q2 (NYSE:QTWO) Shares Down 5% - What's Next?

Key Points

• Q2 Holdings, Inc. (NYSE:QTWO) shares fell 5% during mid-day trading, closing at $68.79 after reaching a low of $68.96, with volume significantly below average at 401,075 shares.
• Brokerage reports indicate a mixed outlook for Q2, with Stifel Nicolaus raising the price target to $110 and issuing a "buy" rating, while Zacks Research downgraded the stock from "strong-buy" to "hold."
• Insider trading activity showed general counsel Michael S. Kerr and director James Offerdahl selling shares, indicating a decrease in their positions, while institutional investors have been gradually purchasing stakes in the company.

Shares of Q2 Holdings, Inc. (NYSE:QTWO - Get Free Report) fell 5% during mid-day trading on Wednesday . The stock traded as low as $68.96 and last traded at $68.79. 401,075 shares changed hands during mid-day trading, a decline of 52% from the average session volume of 830,750 shares. The stock had previously closed at $72.39.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on QTWO. Stifel Nicolaus raised their target price on shares of Q2 from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Zacks Research downgraded shares of Q2 from a "strong-buy" rating to a "hold" rating in a research report on Monday. Cantor Fitzgerald initiated coverage on shares of Q2 in a research report on Tuesday, June 3rd. They issued an "overweight" rating and a $110.00 price target on the stock. Needham & Company LLC increased their price target on shares of Q2 from $110.00 to $115.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Finally, Wall Street Zen downgraded shares of Q2 from a "buy" rating to a "hold" rating in a research report on Friday, September 26th. Nine analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $101.94.

Q2 Stock Performance

The firm has a market cap of $4.25 billion, a P/E ratio of 1,360.69 and a beta of 1.49. The firm's fifty day moving average price is $79.27 and its 200 day moving average price is $82.92.

Insider Buying and Selling

In related news, General Counsel Michael S. Kerr sold 967 shares of the business's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $82.60, for a total transaction of $79,874.20. Following the completion of the transaction, the general counsel owned 56,228 shares in the company, valued at $4,644,432.80. The trade was a 1.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director James Offerdahl sold 786 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $74.15, for a total transaction of $58,281.90. Following the transaction, the director owned 17,792 shares of the company's stock, valued at approximately $1,319,276.80. This trade represents a 4.23% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 8,499 shares of company stock worth $650,658 in the last 90 days. 3.00% of the stock is owned by corporate insiders.

Institutional Trading of Q2

A number of hedge funds have recently added to or reduced their stakes in QTWO. Headlands Technologies LLC purchased a new stake in Q2 during the second quarter worth $26,000. Versant Capital Management Inc purchased a new stake in Q2 during the first quarter worth $33,000. WPG Advisers LLC purchased a new stake in Q2 during the first quarter worth $35,000. Larson Financial Group LLC boosted its holdings in Q2 by 2,630.0% during the first quarter. Larson Financial Group LLC now owns 546 shares of the technology company's stock worth $44,000 after buying an additional 526 shares in the last quarter. Finally, TCTC Holdings LLC boosted its holdings in Q2 by 103.1% during the first quarter. TCTC Holdings LLC now owns 597 shares of the technology company's stock worth $48,000 after buying an additional 303 shares in the last quarter.

About Q2

Q2 Holdings, Inc provides cloud-based digital solutions to regional and community financial institutions in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform supports its financial institution customers in their delivery of unified digital banking services across digital channels.

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