Q2 (NYSE:QTWO) Trading 14.6% Higher Following Earnings Beat

Q2 Holdings, Inc. (NYSE:QTWO)’s stock price traded up 14.6% during trading on Thursday following a better than expected earnings announcement. The company traded as high as $103.74 and last traded at $103.74. 827,627 shares changed hands during mid-day trading, an increase of 41% from the average session 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, topping analysts’ consensus estimates of ($0.04) by $0.01. Q2 had a negative net margin of 10.40% and a negative return on equity of 3.95%. The firm had revenue of $175.02 million during the quarter, compared to analysts’ expectations of $173.31 million.

Analysts Set New Price Targets

QTWO has been the subject of several recent analyst reports. DA Davidson restated a “neutral” rating and set a $76.00 target price on shares of Q2 in a research note on Monday, September 30th. Royal Bank of Canada increased their price objective on Q2 from $76.00 to $105.00 and gave the company a “sector perform” rating in a research report on Thursday. BTIG Research lifted their target price on Q2 from $75.00 to $82.00 and gave the stock a “buy” rating in a research report on Monday, August 26th. Citigroup cut Q2 from a “buy” rating to a “neutral” rating and boosted their price objective for the company from $72.00 to $90.00 in a research report on Friday, October 18th. Finally, Piper Sandler raised their target price on Q2 from $74.00 to $93.00 and gave the stock a “neutral” rating in a research report on Thursday. Five equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $90.79.

Insiders Place Their Bets

In related news, General Counsel Michael S. Kerr sold 517 shares of Q2 stock in a transaction dated Wednesday, September 11th. The stock was sold at an average price of $70.86, for a total value of $36,634.62. Following the completion of the sale, the general counsel now directly owns 61,130 shares in the company, valued at $4,331,671.80. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, EVP Jonathan Price sold 11,000 shares of the firm’s stock in a transaction 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 transaction, the executive vice president now directly owns 215,079 shares in the company, valued at $15,408,259.56. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Michael S. Kerr sold 517 shares of the company’s stock in a transaction dated Wednesday, September 11th. The shares were sold at an average price of $70.86, for a total value 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 represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 41,963 shares of company stock valued at $3,109,699. 3.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Q2

Hedge funds and other institutional investors have recently made changes to their positions in the company. Brown Capital Management LLC grew its position in shares of 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 purchasing an additional 11,000 shares during the period. Conestoga Capital Advisors LLC lifted its stake in 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 buying an additional 34,300 shares in the last quarter. Hood River Capital Management LLC boosted its holdings in shares of Q2 by 5.7% in the second quarter. Hood River Capital Management LLC now owns 1,261,924 shares of the technology company’s stock valued at $76,132,000 after buying an additional 67,757 shares during the period. American Century Companies Inc. increased its position in shares of Q2 by 5,990.6% during the second quarter. American Century Companies Inc. now owns 1,210,143 shares of the technology company’s stock worth $73,008,000 after acquiring an additional 1,190,274 shares in the last quarter. Finally, Perpetual Ltd bought a new stake in shares of Q2 during the third quarter worth $80,788,000.

Q2 Trading Up 12.9 %

The firm has a market capitalization of $6.16 billion, a price-to-earnings ratio of -88.08 and a beta of 1.58. The company has a quick ratio of 2.44, a current ratio of 2.44 and a debt-to-equity ratio of 1.02. The business’s fifty day moving average is $79.80 and its 200 day moving average is $69.08.

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.