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

Q2 Holdings, Inc. (NYSE:QTWO) was up 14.6% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $103.74 and last traded at $103.74. Approximately 827,627 shares were traded during mid-day 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 for the quarter, beating 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 for the quarter, compared to analyst estimates of $173.31 million.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on QTWO. Royal Bank of Canada restated a “sector perform” rating on shares of Q2 in a research note on Friday, October 18th. Needham & Company LLC lifted their target price on shares of Q2 from $90.00 to $120.00 and gave the stock a “buy” rating in a research note on Thursday. Truist Financial restated a “buy” rating and set a $100.00 price target (up from $78.00) on shares of Q2 in a research note on Thursday. DA Davidson reaffirmed a “neutral” rating and issued a $76.00 price target on shares of Q2 in a report on Monday, September 30th. Finally, The Goldman Sachs Group increased their price objective on Q2 from $86.00 to $103.00 and gave the stock a “buy” rating in a report on Thursday. Five research analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $80.86.

Insiders Place Their Bets

In other Q2 news, Director Jeffrey T. Diehl sold 28,005 shares of Q2 stock in a transaction dated Monday, August 26th. The shares were sold at an average price of $75.25, for a total value of $2,107,376.25. Following the completion of the transaction, the director now directly owns 397,702 shares of the company’s stock, valued at approximately $29,927,075.50. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In related news, Director Jeffrey T. Diehl sold 28,005 shares of Q2 stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $75.25, for a total value of $2,107,376.25. Following the completion of the sale, the director now directly owns 397,702 shares in the company, valued at approximately $29,927,075.50. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CRO Michael A. Volanoski sold 1,428 shares of the business’s stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $71.93, for a total value of $102,716.04. Following the sale, the executive now owns 227,672 shares of the company’s stock, valued at approximately $16,376,446.96. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 41,963 shares of company stock worth $3,109,699. 3.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in QTWO. Nordea Investment Management AB increased its position in shares of Q2 by 45.2% during the first quarter. Nordea Investment Management AB now owns 64,826 shares of the technology company’s stock worth $3,456,000 after acquiring an additional 20,195 shares during the period. DekaBank Deutsche Girozentrale raised its holdings in Q2 by 67.4% in the 1st quarter. DekaBank Deutsche Girozentrale now owns 55,617 shares of the technology company’s stock worth $2,908,000 after purchasing an additional 22,400 shares during the period. Perpetual Ltd purchased a new position in Q2 during the third quarter valued at $80,788,000. Oppenheimer & Co. Inc. acquired a new stake in Q2 in the 1st quarter worth about $1,055,000. Finally, Picton Mahoney Asset Management purchased a new stake in Q2 during the 1st quarter worth approximately $5,591,000.

Q2 Price Performance

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 stock’s 50-day moving average price is $79.23 and its 200 day moving average price is $68.85. The firm has a market capitalization of $6.20 billion, a price-to-earnings ratio of -89.43 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.