Zacks Investment Research Upgrades Q2 (QTWO) to “Hold”

Q2 (NYSE:QTWO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Thursday.

According to Zacks, “Q2 Holdings, Inc. provides secure, cloud-based virtual banking solutions. The Company’s solutions include Q2online, Q2themes, Q2mobility App, Q2mobile Remote Deposit Capture, Q2text, Q2voice, Q2clarity and Q2 Risk & Fraud Analytics. It enables regional and community financial institutions, or RCFIs, to deliver a suite of integrated virtual banking services. Q2 Holdings, Inc. is headquartered in Austin, Texas. “

Several other analysts also recently weighed in on the company. JPMorgan Chase & Co. decreased their target price on Q2 to $62.00 and set a “neutral” rating for the company in a research note on Wednesday. Stephens assumed coverage on Q2 in a research note on Thursday, September 27th. They set an “equal weight” rating and a $70.00 target price for the company. Raymond James increased their target price on Q2 from $65.00 to $72.00 and gave the company an “outperform” rating in a research note on Monday, September 10th. DA Davidson increased their target price on Q2 to $52.00 and gave the company a “neutral” rating in a research note on Thursday, August 9th. Finally, Craig Hallum set a $70.00 target price on Q2 and gave the company a “buy” rating in a research note on Thursday, August 9th. Nine research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus target price of $62.79.

NYSE:QTWO traded down $0.28 during mid-day trading on Thursday, hitting $52.64. 503,253 shares of the company’s stock traded hands, compared to its average volume of 387,838. Q2 has a 12 month low of $36.25 and a 12 month high of $67.10. The company has a debt-to-equity ratio of 1.12, a quick ratio of 6.00 and a current ratio of 6.00.

Q2 (NYSE:QTWO) last announced its earnings results on Tuesday, November 6th. The technology company reported ($0.08) earnings per share for the quarter, beating the consensus estimate of ($0.16) by $0.08. Q2 had a negative return on equity of 13.06% and a negative net margin of 12.88%. The firm had revenue of $60.50 million during the quarter, compared to the consensus estimate of $60.18 million. During the same quarter in the prior year, the company earned $0.03 EPS. The firm’s revenue for the quarter was up 20.8% compared to the same quarter last year. Research analysts forecast that Q2 will post -0.53 EPS for the current fiscal year.

In other Q2 news, CEO Matthew P. Flake sold 20,000 shares of the company’s stock in a transaction that occurred on Thursday, November 1st. The stock was sold at an average price of $52.68, for a total value of $1,053,600.00. Following the completion of the transaction, the chief executive officer now owns 280,008 shares of the company’s stock, valued at approximately $14,750,821.44. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP John E. Breeden sold 7,500 shares of the company’s stock in a transaction that occurred on Friday, October 12th. The shares were sold at an average price of $50.33, for a total value of $377,475.00. Following the completion of the transaction, the executive vice president now directly owns 70,247 shares of the company’s stock, valued at approximately $3,535,531.51. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,472,477 shares of company stock valued at $86,758,418. Insiders own 17.90% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the company. JPMorgan Chase & Co. raised its holdings in shares of Q2 by 4.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 2,601,464 shares of the technology company’s stock worth $157,519,000 after buying an additional 106,651 shares in the last quarter. BlackRock Inc. raised its holdings in shares of Q2 by 2.9% in the 3rd quarter. BlackRock Inc. now owns 2,532,671 shares of the technology company’s stock worth $153,353,000 after buying an additional 70,315 shares in the last quarter. Artisan Partners Limited Partnership raised its holdings in shares of Q2 by 18.5% in the 2nd quarter. Artisan Partners Limited Partnership now owns 1,971,546 shares of the technology company’s stock worth $112,477,000 after buying an additional 308,155 shares in the last quarter. Macquarie Group Ltd. raised its holdings in shares of Q2 by 27.6% in the 2nd quarter. Macquarie Group Ltd. now owns 825,602 shares of the technology company’s stock worth $47,101,000 after buying an additional 178,649 shares in the last quarter. Finally, Victory Capital Management Inc. raised its holdings in shares of Q2 by 11.8% in the 3rd quarter. Victory Capital Management Inc. now owns 540,054 shares of the technology company’s stock worth $32,700,000 after buying an additional 57,079 shares in the last quarter. 93.17% of the stock is owned by institutional investors and hedge funds.

About Q2

Q2 Holdings, Inc provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. It offers Q2online, a browser-based digital banking solution that delivers RCFI-branded digital banking capabilities; Q2 Sentinel, a security analytics solution; Q2 Corporate to support RCFIs to attract and retain larger commercial accounts; and Q2 SMART, a targeting and messaging platform.

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