Q2 (NYSE:QTWO) Hits New 12-Month High – Still a Buy?

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

Wall Street Analyst Weigh In

A number of equities analysts have commented on QTWO shares. Royal Bank Of Canada lifted their price objective on shares of Q2 from $73.00 to $75.00 and gave the stock a “sector perform” rating in a research report on Thursday, October 29th. DA Davidson restated a “buy” rating and set a $82.00 price objective on shares of Q2 in a research note on Thursday, July 23rd. JPMorgan Chase & Co. upped their price target on shares of Q2 from $72.00 to $76.00 and gave the stock an “overweight” rating in a report on Thursday, October 29th. UBS Group reaffirmed a “buy” rating on shares of Q2 in a research note on Thursday, October 29th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Q2 in a research note on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $78.33.

Q2 Trading Down 1.6%

The stock has a market capitalization of $4.51 billion, a P/E ratio of 43.18 and a beta of 1.36. The company has a 50-day moving average price of $63.07 and a two-hundred day moving average price of $55.04.

Q2 (NYSE:QTWO) last announced its quarterly earnings data 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. The firm had revenue of $225.77 million for the quarter, compared to analyst estimates of $221.23 million. Q2 had a net margin of 12.66% and a return on equity of 17.85%. The business’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.23 earnings per share. Research analysts forecast that Q2 Holdings, Inc. will post 1.88 earnings per share for the current year.

Insiders Place Their Bets

In other Q2 news, 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 value of $38,770.56. Following the transaction, the general counsel directly owned 80,739 shares in the company, valued at $4,921,849.44. The trade was a 0.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.88% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Dimensional Fund Advisors LP boosted 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 period. The Manufacturers Life Insurance Company raised its position in shares of Q2 by 7.8% in the first quarter. The Manufacturers Life Insurance Company now owns 698,693 shares of the technology company’s stock valued at $33,048,000 after purchasing an additional 50,473 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in shares of Q2 by 139.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 516,246 shares of the technology company’s stock valued at $24,418,000 after buying an additional 300,375 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Q2 during the 2nd quarter valued at approximately $19,639,000. Finally, Bessemer Group Inc. lifted its stake in shares of Q2 by 206.0% during the 3rd quarter. Bessemer Group Inc. now owns 373,276 shares of the technology company’s stock valued at $20,693,000 after buying an additional 251,271 shares in the last quarter.

About Q2

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.