Q2 (NYSE:QTWO) Downgraded to Hold Rating by Wall Street Zen

Wall Street Zen cut shares of Q2 (NYSE:QTWO) from a buy rating to a hold rating in a research report sent to investors on Saturday morning.

Several other equities analysts also recently weighed in on QTWO. Zacks Research raised Q2 from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th. Weiss Ratings raised shares of Q2 from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, July 31st. 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 report on Friday, July 31st. Stifel Nicolaus increased their price objective on shares of Q2 from $70.00 to $75.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Finally, UBS Group set a $68.00 price objective on shares of Q2 in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $75.09.

Q2 Stock Performance

Shares of QTWO opened at $64.97 on Friday. The company’s fifty day moving average is $57.03 and its 200 day moving average is $51.50. Q2 has a fifty-two week low of $40.79 and a fifty-two week high of $85.19. The stock has a market capitalization of $4.05 billion, a PE ratio of 46.41 and a beta of 1.30.

Q2 (NYSE:QTWO) last released its quarterly earnings data on Wednesday, July 29th. The technology company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.68 by $0.02. Q2 had a net margin of 10.87% and a return on equity of 17.04%. The business had revenue of $219.77 million during the quarter, compared to analyst estimates of $216.86 million. During the same quarter last year, the business earned $0.18 earnings per share. Q2’s quarterly revenue was up 12.6% compared to the same quarter last year. As a group, research analysts forecast that Q2 will post 1.84 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Jonathan Price sold 77,180 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $65.71, for a total value of $5,071,497.80. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Kimberly Anne Rutledge sold 10,000 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $63.07, for a total transaction of $630,700.00. Following the completion of the transaction, the insider directly owned 113,913 shares in the company, 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 insiders.

Institutional Trading of Q2

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its stake in Q2 by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 7,995,133 shares of the technology company’s stock worth $576,929,000 after purchasing an additional 82,827 shares in the last quarter. California State Teachers Retirement System grew its position in shares of Q2 by 4,299.6% during the 2nd quarter. California State Teachers Retirement System now owns 3,199,564 shares of the technology company’s stock worth $153,899,000 after buying an additional 3,126,840 shares in the last quarter. Capital Research Global Investors increased its stake in shares of Q2 by 86.2% during the fourth quarter. Capital Research Global Investors now owns 3,141,044 shares of the technology company’s stock valued at $226,658,000 after buying an additional 1,454,076 shares during the period. William Blair Investment Management LLC raised its holdings in shares of Q2 by 25.9% in the fourth quarter. William Blair Investment Management LLC now owns 2,694,718 shares of the technology company’s stock valued at $194,451,000 after acquiring an additional 553,713 shares in the last quarter. Finally, Wasatch Advisors LP lifted its stake in Q2 by 2.9% in the third quarter. Wasatch Advisors LP now owns 2,158,053 shares of the technology company’s stock worth $156,221,000 after acquiring an additional 60,016 shares during the period.

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.