Q2 (NYSE:QTWO) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan raised Q2’s price target from $60 to $72 and maintained an “overweight” rating, implying roughly 13% upside from the prior close.
• Analyst sentiment is broadly positive: Q2 has an average “Moderate Buy” rating and a consensus price target of $75.09, with targets ranging from $68 to $82.
• Q2 exceeded quarterly expectations, reporting EPS of $0.70 versus $0.68 expected and revenue of $219.77 million, up 12.6% year over year; meanwhile, two insiders sold shares under disclosed transactions.

Q2 (NYSE:QTWO - Get Free Report) had its price objective hoisted by investment analysts at JPMorgan Chase & Co. from $60.00 to $72.00 in a report released on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the technology company's stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 12.97% from the company's previous close.

Other analysts also recently issued reports about the company. UBS Group set a $68.00 price target on Q2 in a research note on Friday, July 31st. DA Davidson reiterated a "buy" rating and set a $82.00 price objective on shares of Q2 in a research report on Thursday, July 23rd. Robert W. Baird set a $74.00 target price on Q2 in a report on Thursday, April 30th. Wall Street Zen raised shares of Q2 from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. Finally, Morgan Stanley upped their price target on shares of Q2 from $63.00 to $68.00 and gave the company an "equal weight" rating in a research note on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Q2 presently has an average rating of "Moderate Buy" and an average price target of $75.09.

Q2 Price Performance

Q2 stock traded down $0.17 during mid-day trading on Monday, hitting $63.73. 25,959 shares of the company's stock traded hands, compared to its average volume of 905,319. The firm has a 50 day simple moving average of $54.93 and a two-hundred day simple moving average of $51.18. Q2 has a fifty-two week low of $40.79 and a fifty-two week high of $85.19. The stock has a market cap of $3.97 billion, a price-to-earnings ratio of 45.49 and a beta of 1.30.

Q2 (NYSE:QTWO - Get Free Report) last issued 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 return on equity of 17.04% and a net margin of 10.87%.The company had revenue of $219.77 million during the quarter, compared to analysts' expectations of $216.86 million. During the same quarter in the previous year, the company posted $0.18 earnings per share. The business's revenue was up 12.6% on a year-over-year basis. On average, research analysts anticipate that Q2 will post 1.84 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Jonathan Price sold 77,180 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $65.71, for a total value of $5,071,497.80. Following the completion of the transaction, the chief financial officer owned 207,633 shares of the company's stock, valued at $13,643,564.43. This represents a 27.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Kimberly Anne Rutledge sold 10,000 shares of the company's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $63.07, for a total value of $630,700.00. Following the completion of the transaction, 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.88% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Q2

Several institutional investors and hedge funds have recently added to or reduced their stakes in QTWO. Root Financial Partners LLC acquired a new position in shares of Q2 during the first quarter worth $25,000. Headlands Technologies LLC acquired a new stake in Q2 in the second quarter valued at $26,000. Measured Wealth Private Client Group LLC bought a new position in Q2 during the 3rd quarter worth $26,000. Caitong International Asset Management Co. Ltd bought a new position in Q2 during the 4th quarter worth $27,000. Finally, Optiver Holding B.V. lifted its holdings in Q2 by 1,578.9% during the 1st quarter. Optiver Holding B.V. now owns 638 shares of the technology company's stock worth $30,000 after buying an additional 600 shares during the period.

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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