Q2 (NYSE:QTWO) Shares Up 14.6% on Strong Earnings

Q2 Holdings, Inc. (NYSE:QTWO) rose 14.6% during trading on Thursday following a stronger than expected earnings report. The company traded as high as $103.74 and last traded at $103.74. Approximately 827,627 shares changed hands during trading, an increase of 41% from the average daily volume of 586,131 shares. The stock had previously closed at $90.50.

The technology company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.01. Q2 had a negative net margin of 8.40% and a negative return on equity of 2.34%. The business had revenue of $175.02 million during the quarter, compared to analysts’ expectations of $173.31 million.

Analysts Set New Price Targets

Several research firms have recently weighed in on QTWO. Royal Bank of Canada boosted their target price on Q2 from $76.00 to $105.00 and gave the company a “sector perform” rating in a report on Thursday. Truist Financial reissued a “buy” rating and issued a $100.00 price objective (up from $78.00) on shares of Q2 in a report on Thursday. Needham & Company LLC raised their target price on shares of Q2 from $90.00 to $120.00 and gave the stock a “buy” rating in a research report on Thursday. DA Davidson reiterated a “neutral” rating and issued a $76.00 price target on shares of Q2 in a research report on Monday, September 30th. Finally, Stephens raised their price objective on shares of Q2 from $75.00 to $100.00 and gave the stock an “overweight” rating in a research report on Thursday. Five research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat, Q2 presently has a consensus rating of “Moderate Buy” and a consensus price target of $90.79.

Insider Transactions at Q2

In other news, EVP Jonathan Price sold 11,000 shares of the firm’s stock in a transaction that occurred on Friday, August 16th. The stock was sold at an average price of $71.64, for a total value of $788,040.00. Following the completion of the sale, the executive vice president now directly owns 215,079 shares of the company’s stock, valued at $15,408,259.56. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In other news, EVP Jonathan Price sold 11,000 shares of the company’s stock in a transaction on Friday, August 16th. The shares were sold at an average price of $71.64, for a total transaction of $788,040.00. Following the transaction, the executive vice president now directly owns 215,079 shares of the company’s stock, valued at $15,408,259.56. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, General Counsel Michael S. Kerr sold 517 shares of the firm’s stock in a transaction dated Wednesday, September 11th. The shares were sold at an average price of $70.86, for a total transaction of $36,634.62. Following the completion of the sale, the general counsel now owns 61,130 shares of the company’s stock, valued at $4,331,671.80. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 41,963 shares of company stock worth $3,109,699 over the last ninety days. 3.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Q2

Institutional investors and hedge funds have recently modified their holdings of the company. Brown Capital Management LLC grew its stake in Q2 by 0.4% in the 1st quarter. Brown Capital Management LLC now owns 2,565,647 shares of the technology company’s stock valued at $134,850,000 after acquiring an additional 11,000 shares during the last quarter. Conestoga Capital Advisors LLC grew its position in shares of Q2 by 1.5% in the third quarter. Conestoga Capital Advisors LLC now owns 2,308,194 shares of the technology company’s stock valued at $184,125,000 after purchasing an additional 34,300 shares during the last quarter. Hood River Capital Management LLC increased its stake in shares of Q2 by 5.7% during the 2nd quarter. Hood River Capital Management LLC now owns 1,261,924 shares of the technology company’s stock worth $76,132,000 after purchasing an additional 67,757 shares in the last quarter. American Century Companies Inc. raised its position in shares of Q2 by 5,990.6% during the 2nd quarter. American Century Companies Inc. now owns 1,210,143 shares of the technology company’s stock worth $73,008,000 after purchasing an additional 1,190,274 shares during the last quarter. Finally, Perpetual Ltd purchased a new stake in Q2 in the 3rd quarter valued at approximately $80,788,000.

Q2 Trading Up 0.5 %

The company has a debt-to-equity ratio of 1.02, a quick ratio of 2.44 and a current ratio of 2.44. The business has a fifty day simple moving average of $80.37 and a 200 day simple moving average of $69.44. The stock has a market cap of $6.20 billion, a price-to-earnings ratio of -107.06 and a beta of 1.58.

About Q2

Q2 Holdings, Inc provides cloud-based digital solutions to regional and community financial institutions in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform supports its financial institution customers in their delivery of unified digital banking services across digital channels.