Q2 (NYSE:QTWO) Reaches New 12-Month High – Should You Buy?

Q2 Holdings, Inc. (NYSE:QTWO)’s share price reached a new 52-week high on Thursday. The company traded as high as $76.37 and last traded at $74.8960, with a volume of 189,964 shares. The stock had previously closed at $74.47.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Stephens started coverage on Q2 in a research note on Thursday, October 15th. They issued an “overweight” rating and a $74.00 price target for the company. Wall Street Zen downgraded shares of Q2 from a “buy” rating to a “hold” rating in a report on Sunday, October 18th. DA Davidson reaffirmed a “buy” rating and issued a $82.00 price objective on shares of Q2 in a research report on Thursday, July 23rd. Weiss Ratings reiterated a “hold (c)” rating on shares of Q2 in a research note on Thursday, October 29th. Finally, Robert W. Baird set a $83.00 target price on shares of Q2 in a research report on Thursday, October 29th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $78.33.

Q2 Price Performance

The stock has a fifty day moving average of $62.29 and a 200 day moving average of $54.91. The stock has a market cap of $4.55 billion, a price-to-earnings ratio of 43.59 and a beta of 1.36.

Q2 (NYSE:QTWO) last issued its quarterly earnings results on Wednesday, October 28th. The technology company reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.72 by $0.02. Q2 had a net margin of 12.66% and a return on equity of 17.85%. The company had revenue of $225.77 million for the quarter, compared to the consensus estimate of $221.23 million. During the same quarter in the prior year, the company earned $0.23 EPS. Q2’s quarterly revenue was up 11.9% on a year-over-year basis. As a group, equities analysts expect that Q2 Holdings, Inc. will post 1.88 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Jonathan Price sold 77,180 shares of Q2 stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $65.71, for a total transaction of $5,071,497.80. Following the completion of the transaction, the chief financial officer directly owned 207,633 shares in the company, valued at approximately $13,643,564.43. This trade represents a 27.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Kimberly Rutledge sold 10,000 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $63.07, for a total transaction of $630,700.00. Following the sale, 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 three months, insiders have sold 87,816 shares of company stock valued at $5,740,968. Company insiders own 0.88% of the company’s stock.

Institutional Investors Weigh In On Q2

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hohimer Wealth Management LLC lifted its holdings in Q2 by 3.4% during the third quarter. Hohimer Wealth Management LLC now owns 4,693 shares of the technology company’s stock valued at $260,000 after purchasing an additional 153 shares in the last quarter. Allworth Financial LP lifted its stake in Q2 by 48.1% in the 2nd quarter. Allworth Financial LP now owns 1,120 shares of the technology company’s stock valued at $54,000 after buying an additional 364 shares in the last quarter. Eurizon Capital SGR S.p.A. lifted its stake in Q2 by 21.1% in the 3rd quarter. Eurizon Capital SGR S.p.A. now owns 2,330 shares of the technology company’s stock valued at $129,000 after buying an additional 406 shares in the last quarter. Versant Capital Management Inc lifted its stake in Q2 by 45.2% in the 2nd quarter. Versant Capital Management Inc now owns 1,570 shares of the technology company’s stock valued at $76,000 after buying an additional 489 shares in the last quarter. Finally, Pacer Advisors Inc. boosted its holdings in Q2 by 42.6% in the 1st quarter. Pacer Advisors Inc. now owns 1,656 shares of the technology company’s stock worth $78,000 after buying an additional 495 shares during the last quarter.

About Q2

Q2 Holdings, Inc is a financial technology company that provides cloud-based software to banks, credit unions and other financial institutions. Its platform is designed to help these organizations deliver digital banking experiences, manage customer relationships and expand access to financial services through online and mobile channels.

The company’s products and services include digital banking, account opening, lending and loan origination, payments, data and analytics, financial crime prevention, and tools for managing customer engagement.