Q2 (NYSE:QTWO) Reaches New 1-Year High – Time to Buy?

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

Analyst Ratings Changes

Several equities research analysts have recently weighed in on QTWO shares. DA Davidson reaffirmed a “buy” rating and issued a $82.00 price target on shares of Q2 in a research report on Thursday, July 23rd. Stephens began coverage on shares of Q2 in a report on Thursday, October 15th. They set an “overweight” rating and a $74.00 price objective on the stock. Morgan Stanley boosted their price objective on shares of Q2 from $63.00 to $68.00 and gave the stock an “equal weight” rating in a research note on Friday, July 31st. UBS Group reissued a “buy” rating on shares of Q2 in a research note on Thursday, October 29th. Finally, Robert W. Baird set a $83.00 target price on Q2 in a report 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 assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $78.33.

Q2 Stock Up 0.9%

The firm has a 50 day simple moving average of $61.92 and a 200-day simple moving average of $54.81. The company has a market cap of $4.64 billion, a PE ratio of 44.39 and a beta of 1.36.

Q2 (NYSE:QTWO) last released its quarterly earnings results on Wednesday, October 28th. The technology company reported $0.74 EPS for the quarter, beating 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 business had revenue of $225.77 million during the quarter, compared to analyst estimates of $221.23 million. During the same period in the prior year, the firm posted $0.23 earnings per share. The company’s quarterly revenue was up 11.9% on a year-over-year basis. As a group, equities analysts anticipate that Q2 Holdings, Inc. will post 1.88 EPS for the current year.

Insiders Place Their Bets

In other news, General Counsel Michael Kerr sold 636 shares of the company’s stock in a transaction on Friday, September 11th. The stock was sold at an average price of $60.96, for a total transaction of $38,770.56. Following the transaction, the general counsel directly owned 80,739 shares of the company’s stock, valued at approximately $4,921,849.44. This represents a 0.78% decrease in their ownership of the stock. The sale was disclosed in a document filed 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 the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $63.07, for a total value of $630,700.00. Following the sale, the insider owned 113,913 shares of the company’s stock, valued at approximately $7,184,492.91. This represents a 8.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 87,816 shares of company stock valued at $5,740,968. 0.88% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP boosted its holdings in Q2 by 34.7% in the first quarter. Dimensional Fund Advisors LP now owns 1,009,773 shares of the technology company’s stock worth $47,760,000 after acquiring an additional 259,912 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Q2 by 7.8% during 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 acquiring an additional 50,473 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Q2 by 139.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 516,246 shares of the technology company’s stock valued at $24,418,000 after acquiring an additional 300,375 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Q2 in the 2nd quarter valued at approximately $19,639,000. Finally, Wellington Management Group LLP raised its position in shares of Q2 by 9.0% in the 2nd quarter. Wellington Management Group LLP now owns 353,484 shares of the technology company’s stock valued at $17,003,000 after purchasing an additional 29,075 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.