Wall Street Zen Upgrades Q2 (NYSE:QTWO) to Buy

Key Points

• Wall Street Zen upgraded Q2 Holdings to “buy” from “hold,” contributing to a broader analyst consensus of “Moderate Buy.” Eight analysts rate the stock a Buy and four rate it a Hold, with an average price target of $74.
• Q2 reported quarterly EPS of $0.70, beating estimates of $0.68, while revenue reached $219.77 million versus expectations of $216.86 million. Revenue increased 12.6% year over year.
• Q2 shares opened at $61.00, compared with a 12-month range of $40.79 to $90.08, giving the company a market capitalization of approximately $3.80 billion.

Q2 (NYSE:QTWO - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

Several other research firms have also weighed in on QTWO. Weiss Ratings reissued a "hold (c-)" rating on shares of Q2 in a research report on Friday, July 17th. JPMorgan Chase & Co. lowered their target price on Q2 from $80.00 to $60.00 and set an "overweight" rating on the stock in a research note on Monday, June 22nd. UBS Group set a $68.00 target price on Q2 in a report on Friday. Stifel Nicolaus increased their price target on shares of Q2 from $70.00 to $75.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Robert W. Baird set a $74.00 price target on shares of Q2 in a report on Thursday, April 30th. Eight investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Q2 has a consensus rating of "Moderate Buy" and an average price target of $74.00.

Q2 Stock Performance

NYSE QTWO opened at $61.00 on Friday. The firm's 50 day moving average price is $49.57 and its two-hundred day moving average price is $51.50. Q2 has a twelve month low of $40.79 and a twelve month high of $90.08. The stock has a market cap of $3.80 billion, a price-to-earnings ratio of 43.57 and a beta of 1.33.

Q2 (NYSE:QTWO - Get Free Report) last released its earnings results on Wednesday, July 29th. The technology company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.68 by $0.02. The company had revenue of $219.77 million during the quarter, compared to analyst estimates of $216.86 million. Q2 had a return on equity of 17.04% and a net margin of 10.87%.The company's revenue for the quarter was up 12.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.18 earnings per share. On average, research analysts forecast that Q2 will post 1.73 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. California State Teachers Retirement System raised its position in shares of Q2 by 0.3% during the second 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 during the last quarter. Maryland State Retirement & Pension System grew its position in Q2 by 2.2% during the fourth quarter. Maryland State Retirement & Pension System now owns 9,174 shares of the technology company's stock worth $662,000 after buying an additional 197 shares in the last quarter. Oregon Public Employees Retirement Fund grew its position in Q2 by 1.4% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 14,300 shares of the technology company's stock worth $1,032,000 after buying an additional 200 shares in the last quarter. Advisors Asset Management Inc. increased its stake in Q2 by 35.0% during the first quarter. Advisors Asset Management Inc. now owns 849 shares of the technology company's stock valued at $68,000 after acquiring an additional 220 shares during the period. Finally, Headlands Technologies LLC bought a new position in Q2 during the second quarter valued at about $26,000.

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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