Q2 (NYSE:QTWO) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Q2 (NYSE:QTWO) from a buy rating to a hold rating in a research note published on Sunday,Wall Street Zen reports.

A number of other research firms also recently commented on QTWO. Needham & Company LLC boosted their target price on Q2 from $70.00 to $75.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Stephens began coverage on Q2 in a research report on Thursday, October 15th. They issued an “overweight” rating and a $74.00 price target for the company. Piper Sandler reaffirmed an “overweight” rating and set a $82.00 price target on shares of Q2 in a research note on Tuesday, September 22nd. Royal Bank Of Canada boosted their price objective on shares of Q2 from $67.00 to $73.00 and gave the stock a “sector perform” rating in a research report on Monday, August 31st. Finally, Zacks Research lowered shares of Q2 from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $74.83.

Q2 Trading Up 5.9%

Shares of QTWO opened at $65.90 on Friday. The firm’s 50-day moving average is $60.78 and its two-hundred day moving average is $53.98. Q2 has a twelve month low of $40.79 and a twelve month high of $76.24. The firm has a market capitalization of $4.11 billion, a P/E ratio of 47.07 and a beta of 1.34.

Q2 (NYSE:QTWO) last issued 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 analysts’ expectations of $216.86 million. Q2 had a net margin of 10.87% and a return on equity of 17.04%. The firm’s quarterly revenue was up 12.6% compared to the same quarter last year. During the same period last year, the company posted $0.18 earnings per share. Analysts predict that Q2 will post 1.80 EPS for the current year.

Insider Activity

In related news, CFO Jonathan Price sold 77,180 shares of Q2 stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $65.71, for a total transaction of $5,071,497.80. Following the completion of the sale, the chief financial officer owned 207,633 shares in the company, valued at approximately $13,643,564.43. This trade represents a 27.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, General Counsel Michael Kerr sold 636 shares of the business’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $60.96, for a total transaction of $38,770.56. Following the completion of the transaction, the general counsel directly owned 80,739 shares of the company’s stock, valued at $4,921,849.44. The trade was a 0.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 87,816 shares of company stock worth $5,740,968 over the last three months. 0.88% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Q2

A number of hedge funds and other institutional investors have recently modified their holdings of QTWO. Assenagon Asset Management S.A. grew its holdings in 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 valued at $57,253,000 after purchasing an additional 657,707 shares during the period. Dimensional Fund Advisors LP increased its position in Q2 by 34.7% during the first quarter. Dimensional Fund Advisors LP now owns 1,009,773 shares of the technology company’s stock worth $47,760,000 after purchasing an additional 259,912 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in Q2 by 7.8% during the first quarter. The Manufacturers Life Insurance Company now owns 698,693 shares of the technology company’s stock worth $33,048,000 after purchasing an additional 50,473 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in Q2 by 139.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 516,246 shares of the technology company’s stock worth $24,418,000 after purchasing an additional 300,375 shares during the period. Finally, Fort Washington Investment Advisors Inc. OH raised its stake in Q2 by 73.0% during the first quarter. Fort Washington Investment Advisors Inc. OH now owns 488,080 shares of the technology company’s stock worth $23,086,000 after purchasing an additional 205,970 shares during the period.

Q2 Company Profile

Q2 Holdings, Inc is a financial technology company that provides cloud-based software to banks, credit unions and other financial institutions. Its platform is designed to help these organizations deliver digital banking experiences, manage customer relationships and expand access to financial services through online and mobile channels.

The company’s products and services include digital banking, account opening, lending and loan origination, payments, data and analytics, financial crime prevention, and tools for managing customer engagement.