Q2 (NYSE:QTWO) Shares Gap Down Following Weak Earnings

Q2 Holdings, Inc. (NYSE:QTWO)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $52.51, but opened at $47.28. Q2 shares last traded at $49.2020, with a volume of 253,072 shares traded.

The technology company reported $0.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.71 by ($0.08). The company had revenue of $216.51 million for the quarter, compared to analysts’ expectations of $214.36 million. Q2 had a return on equity of 12.52% and a net margin of 6.54%.The company’s revenue was up 14.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.07 EPS.

Analyst Upgrades and Downgrades

QTWO has been the topic of several recent research reports. Robert W. Baird set a $74.00 target price on Q2 in a research report on Thursday. Stephens set a $90.00 price objective on Q2 in a research report on Friday, January 16th. Truist Financial lowered their price objective on Q2 from $110.00 to $75.00 and set a “buy” rating on the stock in a research report on Thursday, February 12th. Morgan Stanley set a $68.00 price objective on Q2 in a research report on Thursday, February 12th. Finally, Stifel Nicolaus set a $75.00 price objective on Q2 in a research report on Thursday, February 12th. Eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $77.33.

Insider Buying and Selling

In related news, CEO Matthew P. Flake sold 20,613 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $51.35, for a total value of $1,058,477.55. Following the sale, the chief executive officer owned 483,202 shares in the company, valued at approximately $24,812,422.70. This trade represents a 4.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider John E. Breeden sold 6,076 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $51.35, for a total value of $312,002.60. Following the completion of the sale, the insider owned 84,236 shares in the company, valued at $4,325,518.60. This trade represents a 6.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 411,087 shares of company stock valued at $20,702,472 in the last ninety days. 3.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Q2

Large investors have recently added to or reduced their stakes in the company. Root Financial Partners LLC purchased a new stake in Q2 during the first quarter valued at about $25,000. Headlands Technologies LLC purchased a new stake in Q2 during the second quarter valued at about $26,000. Measured Wealth Private Client Group LLC purchased a new stake in Q2 during the third quarter valued at about $26,000. Cullen Frost Bankers Inc. purchased a new stake in Q2 during the third quarter valued at about $27,000. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in Q2 during the fourth quarter valued at about $27,000.

Q2 Stock Down 4.5%

The stock has a 50-day simple moving average of $49.12 and a two-hundred day simple moving average of $60.70. The firm has a market cap of $3.13 billion, a PE ratio of 62.87 and a beta of 1.42.

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.