Q2 (NYSE:QTWO) Reaches New 12-Month High – Here’s What Happened

Q2 Holdings, Inc. (NYSE:QTWO)’s share price hit a new 52-week high during trading on Wednesday. The company traded as high as $76.51 and last traded at $75.3230, with a volume of 2,237 shares trading hands. The stock had previously closed at $75.33.

Analysts Set New Price Targets

A number of analysts have issued reports on QTWO shares. Stephens initiated coverage on Q2 in a research note on Thursday, October 15th. They issued an “overweight” rating and a $74.00 price objective on the stock. Piper Sandler increased their target price on Q2 from $82.00 to $84.00 and gave the company an “overweight” rating in a research report on Thursday, October 29th. Morgan Stanley raised their target price on shares of Q2 from $63.00 to $68.00 and gave the company an “equal weight” rating in a report on Friday, July 31st. Zacks Research cut shares of Q2 from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Finally, Stifel Nicolaus upped their price target on shares of Q2 from $75.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $78.33.

Q2 Trading Down 0.6%

The firm has a market capitalization of $4.62 billion, a P/E ratio of 44.29 and a beta of 1.35. The firm has a 50 day moving average price of $62.68 and a 200-day moving average price of $54.99.

Q2 (NYSE:QTWO) last released its earnings results on Wednesday, October 28th. The technology company reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.02. Q2 had a return on equity of 17.85% and a net margin of 12.66%. The firm had revenue of $225.77 million for the quarter, compared to the consensus estimate of $221.23 million. During the same quarter in the previous year, the company posted $0.23 EPS. The company’s revenue for the quarter was up 11.9% compared to the same quarter last year. Research analysts anticipate that Q2 Holdings, Inc. will post 1.88 earnings per share for the current year.

Insiders Place Their Bets

In other news, General Counsel Michael Kerr sold 636 shares of the stock in a transaction on Friday, September 11th. The shares were sold at an average price of $60.96, for a total value of $38,770.56. Following the sale, the general counsel owned 80,739 shares of the company’s stock, valued at approximately $4,921,849.44. This represents a 0.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jonathan Price sold 77,180 shares of the stock in a transaction on Thursday, August 13th. The shares were 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 directly owned 207,633 shares in the company, valued at approximately $13,643,564.43. This represents a 27.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.88% of the company’s stock.

Institutional Trading of Q2

Several institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP lifted its stake in shares of Q2 by 9.0% during the 2nd quarter. Wellington Management Group LLP now owns 353,484 shares of the technology company’s stock worth $17,003,000 after acquiring an additional 29,075 shares during the last quarter. Entropy Technologies LP grew its position in Q2 by 864.9% in the 1st quarter. Entropy Technologies LP now owns 26,902 shares of the technology company’s stock valued at $1,272,000 after acquiring an additional 24,114 shares during the last quarter. Tidal Investments LLC grew its position in Q2 by 22.4% in the 2nd quarter. Tidal Investments LLC now owns 251,079 shares of the technology company’s stock valued at $12,077,000 after acquiring an additional 45,927 shares during the last quarter. Smith Group Asset Management LLC purchased a new stake in Q2 in the first quarter worth $1,422,000. Finally, Fifth Third Bancorp increased its stake in Q2 by 27,165.5% in the first quarter. Fifth Third Bancorp now owns 257,114 shares of the technology company’s stock worth $12,161,000 after purchasing an additional 256,171 shares during the period.

Q2 Company Profile

Q2 Holdings, Inc. provides digital banking and financial technology solutions to banks, credit unions and other financial institutions. Its cloud-based platform helps institutions deliver online and mobile banking services to consumers and businesses. The company’s offerings include digital account opening, lending, payments, data and analytics, and tools for managing customer relationships. Q2 also provides technology and services that help financial institutions connect with fintech companies and expand their digital offerings.