Q2 (NYSE:QTWO) Sets New 1-Year Low – Should You Sell?

Q2 Holdings, Inc. (NYSE:QTWO) shares hit a new 52-week low on Tuesday . The stock traded as low as $58.53 and last traded at $58.3310, with a volume of 42093 shares trading hands. The stock had previously closed at $60.50.

Analyst Ratings Changes

A number of brokerages recently commented on QTWO. DA Davidson upgraded shares of Q2 from a “neutral” rating to a “buy” rating and set a $82.00 price target on the stock in a research note on Tuesday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Q2 in a research note on Thursday, January 22nd. Stephens set a $90.00 price target on Q2 in a research note on Friday, January 16th. Cantor Fitzgerald decreased their price objective on Q2 from $110.00 to $90.00 and set an “overweight” rating on the stock in a report on Wednesday, October 29th. Finally, Needham & Company LLC lowered their price objective on Q2 from $115.00 to $90.00 and set a “buy” rating on the stock in a research report on Thursday, November 6th. Nine research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Q2 presently has a consensus rating of “Moderate Buy” and an average target price of $92.27.

Q2 Price Performance

The company has a market cap of $3.46 billion, a P/E ratio of 115.49 and a beta of 1.36. The stock has a 50-day moving average of $70.04 and a 200 day moving average of $72.34.

Q2 (NYSE:QTWO) last announced its quarterly earnings data on Wednesday, November 5th. The technology company reported $0.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.32). The firm had revenue of $201.70 million for the quarter, compared to analyst estimates of $197.87 million. Q2 had a return on equity of 10.92% and a net margin of 4.12%.The company’s quarterly revenue was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.20) earnings per share. Sell-side analysts predict that Q2 Holdings, Inc. will post 0.67 EPS for the current year.

Insiders Place Their Bets

In related news, insider Kirk L. Coleman sold 8,559 shares of the firm’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $73.68, for a total value of $630,627.12. Following the sale, the insider directly owned 269,128 shares of the company’s stock, valued at $19,829,351.04. This trade represents a 3.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, COO Himagiri K. Mukkamala sold 3,024 shares of Q2 stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $73.68, for a total value of $222,808.32. Following the completion of the transaction, the chief operating officer owned 96,046 shares in the company, valued at approximately $7,076,669.28. This represents a 3.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 20,883 shares of company stock worth $1,547,778 over the last three months. Insiders own 0.31% of the company’s stock.

Institutional Investors Weigh In On Q2

Institutional investors have recently added to or reduced their stakes in the business. Campbell & CO Investment Adviser LLC bought a new position in shares of Q2 during the 3rd quarter worth approximately $1,559,000. Connor Clark & Lunn Investment Management Ltd. boosted its stake in Q2 by 15.0% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 158,328 shares of the technology company’s stock worth $14,818,000 after acquiring an additional 20,643 shares in the last quarter. Castleark Management LLC acquired a new stake in Q2 in the second quarter worth $5,341,000. Federated Hermes Inc. increased its stake in Q2 by 5.5% in the third quarter. Federated Hermes Inc. now owns 788,374 shares of the technology company’s stock valued at $57,070,000 after purchasing an additional 41,229 shares in the last quarter. Finally, Louisiana State Employees Retirement System acquired a new position in shares of Q2 during the third quarter valued at about $2,078,000.

About Q2

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.