Q2 (NYSE:QTWO – Get Free Report) had its target price upped by research analysts at Needham & Company LLC from $75.00 to $85.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage presently has a “buy” rating on the technology company’s stock. Needham & Company LLC‘s target price points to a potential upside of 25.38% from the stock’s previous close.
Several other brokerages have also recently issued reports on QTWO. Wall Street Zen cut Q2 from a “buy” rating to a “hold” rating in a research report on Sunday, October 18th. DA Davidson reissued a “buy” rating and issued a $82.00 price target on shares of Q2 in a research report on Thursday, July 23rd. Weiss Ratings upgraded Q2 from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, July 31st. JPMorgan Chase & Co. raised their price objective on Q2 from $60.00 to $72.00 and gave the company an “overweight” rating in a research report on Monday, August 24th. Finally, Morgan Stanley raised their price objective on Q2 from $63.00 to $68.00 and gave the company an “equal weight” rating in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $76.67.
Check Out Our Latest Report on Q2
Q2 Stock Performance
NYSE QTWO opened at $67.79 on Thursday. The company has a market capitalization of $4.23 billion, a price-to-earnings ratio of 48.42 and a beta of 1.34. The company’s 50-day simple moving average is $61.34 and its two-hundred day simple moving average is $54.79. Q2 has a one year low of $40.79 and a one year high of $76.24.
Q2 (NYSE:QTWO – Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The technology company reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.72 by $0.02. The firm had revenue of $225.77 million during the quarter, compared to analysts’ expectations of $221.23 million. Q2 had a net margin of 10.87% and a return on equity of 17.04%. The company’s revenue was up 11.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.23 EPS. Equities analysts expect that Q2 will post 1.80 earnings per share for the current fiscal year.
Insider Transactions at Q2
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. Corporate insiders own 0.88% of the company’s stock.
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 grew its stake 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 worth $33,048,000 after acquiring an additional 50,473 shares during 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 acquired a new position in shares of Q2 during the second quarter valued at about $19,639,000. Finally, Wellington Management Group LLP increased its holdings in shares of Q2 by 9.0% during the second quarter. Wellington Management Group LLP now owns 353,484 shares of the technology company’s stock valued at $17,003,000 after acquiring an additional 29,075 shares in the last quarter.
More Q2 News
Here are the key news stories impacting Q2 this week:
- Positive Sentiment: Q2 exceeded expectations with third-quarter revenue of $225.8 million, up approximately 12% year over year and above the $221.2 million consensus estimate. Adjusted earnings were $0.74 per share versus the $0.71-$0.72 analyst range. Q2 Holdings earnings report
- Positive Sentiment: Profitability improved meaningfully: non-GAAP gross margin reached a record 62.6%, compared with 57.9% a year earlier, while third-quarter EBITDA increased 38.8% year over year. Subscription revenue grew 13.9%, supporting the company’s recurring-revenue model. Q2 Holdings: 3 Key Takeaways for Long-Term Investors
- Positive Sentiment: Management raised its 2026 revenue outlook to $888 million-$892 million, above the $885 million FactSet estimate. Analysts also cited Q2’s $2.8 billion backlog, cross-selling opportunities and AI-driven productivity initiatives as potential sources of further growth. Q2 Holdings: Turning Positive After Third Quarter Beat-And-Raise
- Neutral Sentiment: Q2 appointed Jonathan Price as co-chief executive officer, effective October 29. The move could add leadership depth, though investors may seek more clarity on the division of responsibilities and long-term succession plans. Q2 Holdings appoints Jonathan Price as co-CEO
- Negative Sentiment: The strong results may be partly reflected in the stock: QTWO has climbed significantly from its one-year low and trades above both its 50-day and 200-day moving averages. With a price-to-earnings ratio near 48, investors may be taking profits or demanding continued acceleration before bidding the shares higher.
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.
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