Q2 (NYSE:QTWO) Stock Rating Lowered by Wall Street Zen

Q2 (NYSE:QTWO) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Sunday, Wall Street Zen reports.

Several other research analysts have also recently commented on QTWO. Piper Sandler reaffirmed an “overweight” rating and set a $82.00 target price on shares of Q2 in a report on Tuesday, September 22nd. Morgan Stanley boosted their price target on Q2 from $63.00 to $68.00 and gave the company an “equal weight” rating in a research note on Friday, July 31st. Weiss Ratings upgraded Q2 from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, July 31st. Zacks Research downgraded Q2 from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Finally, Stifel Nicolaus raised their price objective on Q2 from $70.00 to $75.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Q2 currently has a consensus rating of “Moderate Buy” and an average price target of $74.83.

Q2 Price Performance

QTWO stock opened at $62.13 on Friday. The stock has a market capitalization of $3.87 billion, a price-to-earnings ratio of 37.53 and a beta of 1.34. The business’s fifty day moving average price is $60.73 and its two-hundred day moving average price is $53.85. Q2 has a fifty-two week low of $40.79 and a fifty-two week high of $76.24.

Q2 (NYSE:QTWO) last posted its earnings results on Wednesday, July 29th. The technology company reported $0.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.68 by $0.02. Q2 had a return on equity of 17.04% and a net margin of 10.87%. The company had revenue of $219.77 million during the quarter, compared to the consensus estimate of $216.86 million. During the same quarter last year, the firm earned $0.18 earnings per share. The company’s revenue was up 12.6% on a year-over-year basis. Research analysts expect that Q2 will post 1.80 EPS for the current year.

Insider Activity

In other news, General Counsel Michael Kerr sold 636 shares of the company’s stock in a transaction that occurred on 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 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 position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kimberly Rutledge sold 10,000 shares of Q2 stock in a transaction that occurred on Monday, August 10th. The shares were 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 trade represents a 8.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 87,816 shares of company stock worth $5,740,968. 0.88% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Q2

A number of large investors have recently modified their holdings of QTWO. Root Financial Partners LLC acquired a new stake in Q2 in the first quarter valued at about $25,000. Optiver Holding B.V. boosted its stake in Q2 by 1,578.9% in the first quarter. Optiver Holding B.V. now owns 638 shares of the technology company’s stock valued at $30,000 after buying an additional 600 shares in the last quarter. Allworth Financial LP grew its position in Q2 by 48.1% in the second quarter. Allworth Financial LP now owns 1,120 shares of the technology company’s stock valued at $54,000 after acquiring an additional 364 shares during the last quarter. Harbor Investment Advisory LLC bought a new position in Q2 in the second quarter valued at about $61,000. Finally, Integrated Wealth Concepts LLC bought a new position in Q2 in the second quarter valued at about $71,000.

Q2 Company Profile

Q2 Holdings, Inc is a financial technology company that provides cloud-based digital banking and lending solutions. Its software is designed primarily for banks, credit unions and other financial institutions seeking to deliver online and mobile banking services, automate financial workflows and improve engagement with consumers and businesses.

The company’s offerings include the Q2 Digital Banking Platform, which supports digital account access and financial services, as well as tools for lending, relationship pricing, profitability management and embedded finance.