Jennison Associates LLC Reduces Stock Position in Q2 Holdings, Inc. $QTWO

Jennison Associates LLC lowered its position in shares of Q2 Holdings, Inc. (NYSE:QTWO) by 1.3% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,096,783 shares of the technology company’s stock after selling 14,509 shares during the period. Jennison Associates LLC owned about 1.75% of Q2 worth $79,144,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in QTWO. Principal Financial Group Inc. grew its position in Q2 by 502.5% in the third quarter. Principal Financial Group Inc. now owns 301,917 shares of the technology company’s stock worth $21,856,000 after acquiring an additional 251,807 shares in the last quarter. Campbell & CO Investment Adviser LLC purchased a new stake in Q2 during the third quarter valued at about $1,559,000. Peregrine Capital Management LLC boosted its position in Q2 by 48.7% during the fourth quarter. Peregrine Capital Management LLC now owns 143,243 shares of the technology company’s stock valued at $10,336,000 after buying an additional 46,903 shares during the period. Federated Hermes Inc. boosted its position in Q2 by 5.5% during the third quarter. Federated Hermes Inc. now owns 788,374 shares of the technology company’s stock valued at $57,070,000 after buying an additional 41,229 shares during the period. Finally, Thrivent Financial for Lutherans boosted its position in Q2 by 53.5% during the third quarter. Thrivent Financial for Lutherans now owns 46,658 shares of the technology company’s stock valued at $3,378,000 after buying an additional 16,263 shares during the period.

Insider Activity at Q2

In other news, insider John E. Breeden sold 6,076 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $51.35, for a total transaction of $312,002.60. Following the completion of the sale, the insider directly owned 84,236 shares in the company, valued at approximately $4,325,518.60. This represents a 6.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Himagiri K. Mukkamala sold 1,343 shares of the stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $51.35, for a total transaction of $68,963.05. Following the sale, the chief operating officer owned 92,910 shares of the company’s stock, valued at approximately $4,770,928.50. This represents a 1.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 411,087 shares of company stock valued at $20,702,472 in the last quarter. 0.31% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research firms have issued reports on QTWO. DA Davidson restated a “buy” rating and set a $82.00 price target on shares of Q2 in a research report on Tuesday. Royal Bank Of Canada cut their price target on shares of Q2 from $86.00 to $67.00 and set a “sector perform” rating for the company in a research report on Thursday, February 12th. JPMorgan Chase & Co. upped their price target on shares of Q2 from $75.00 to $80.00 and gave the company an “overweight” rating in a research report on Thursday. Truist Financial cut their price target on shares of Q2 from $110.00 to $75.00 and set a “buy” rating for the company in a research report on Thursday, February 12th. Finally, UBS Group set a $77.00 price target on shares of Q2 in a research report on Thursday. Eight equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $77.75.

Q2 News Summary

Here are the key news stories impacting Q2 this week:

• Positive Sentiment: Analyst upgrade — JPMorgan raised its price target to $80 and kept an “overweight” rating, implying meaningful upside from current levels. Benzinga
• Positive Sentiment: Needham reaffirmed a “buy” rating with a $70 target, another supportive analyst call on the stock. Benzinga
• Positive Sentiment: Revenue and margins beat/expanded — Q1 revenue of $216.5M topped consensus and rose ~14% year-over-year; GAAP gross margin improved materially versus the year-ago quarter, suggesting operational leverage. Business Wire: Q1 Results
• Neutral Sentiment: Guidance roughly in-line — Q2 and full-year revenue ranges were provided and sit near consensus (FY revenue guidance approx. $875–882M vs. Street ~876M), which limits upside surprise from guidance alone. MarketBeat: Earnings / Guidance
• Neutral Sentiment: Earnings call highlights & AI commentary — Management discussed strong revenue growth and AI-related initiatives on the call, which could support longer-term growth but may take time to translate to margins or EPS. Yahoo: Call Highlights
• Neutral Sentiment: Full call transcript and slide deck available — Useful for investors who want management commentary and KPIs in detail. Seeking Alpha: Transcript
• Negative Sentiment: EPS miss — Q1 EPS of $0.63 missed the consensus ~$0.71, which appears to be the primary driver of the intraday share weakness despite the revenue beat. Zacks: EPS Lag
• Negative Sentiment: Market reaction and volume — Shares declined today on the mixed print and EPS miss, with volume well above normal as investors adjusted positions. MarketBeat: Stock Quote

Q2 Trading Down 3.2%

Q2 stock opened at $50.83 on Friday. The firm has a 50-day moving average of $49.10 and a 200-day moving average of $60.63. The firm has a market cap of $3.17 billion, a P/E ratio of 45.39 and a beta of 1.42. Q2 Holdings, Inc. has a 1-year low of $44.65 and a 1-year high of $96.68.

Q2 (NYSE:QTWO) last posted its earnings results on Wednesday, April 29th. The technology company reported $0.63 earnings per share for the quarter, missing analysts’ consensus estimates of $0.71 by ($0.08). The firm had revenue of $216.51 million for the quarter, compared to analysts’ expectations of $214.40 million. Q2 had a return on equity of 14.61% and a net margin of 8.99%.The business’s revenue for the quarter was up 14.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.07 earnings per share. Research analysts forecast that Q2 Holdings, Inc. will post 1.56 earnings per share for the current fiscal year.

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.