Q2 (NYSE:QTWO) Downgraded to “Hold” at Zacks Investment Research


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Q2 (NYSE:QTWO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Thursday, Zacks.com reports.

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. “

A number of other research firms also recently commented on QTWO. DA Davidson increased their price objective on Q2 from $88.00 to $108.00 and gave the company a “neutral” rating in a report on Friday, November 6th. They noted that the move was a valuation call. Compass Point assumed coverage on Q2 in a report on Wednesday, September 16th. They issued a “buy” rating and a $120.00 price objective on the stock. ValuEngine downgraded Q2 from a “buy” rating to a “hold” rating in a report on Friday, December 11th. Finally, BidaskClub downgraded Q2 from a “strong-buy” rating to a “buy” rating in a report on Wednesday, December 30th. Seven investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. The company currently has a consensus rating of “Buy” and an average price target of $102.83.

QTWO opened at $128.01 on Thursday. The stock’s 50-day moving average price is $121.70 and its 200 day moving average price is $101.89. Q2 has a 12-month low of $47.17 and a 12-month high of $130.59. The company has a current ratio of 3.88, a quick ratio of 3.88 and a debt-to-equity ratio of 0.67. The firm has a market cap of $6.90 billion, a price-to-earnings ratio of -58.99 and a beta of 1.57.

Q2 (NYSE:QTWO) last posted its quarterly earnings results on Wednesday, November 4th. The technology company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.01. The company had revenue of $103.80 million for the quarter, compared to analyst estimates of $102.92 million. Q2 had a negative return on equity of 5.59% and a negative net margin of 30.10%. Q2’s revenue for the quarter was up 30.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.05 EPS. On average, research analysts forecast that Q2 will post -0.82 earnings per share for the current year.

In other news, CTO Adam D. Blue sold 1,026 shares of the firm’s stock in a transaction that occurred on Wednesday, October 21st. The stock was sold at an average price of $95.11, for a total value of $97,582.86. Following the completion of the sale, the chief technology officer now directly owns 73,062 shares of the company’s stock, valued at approximately $6,948,926.82. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Rebecca Lynn Atchison sold 2,000 shares of the firm’s stock in a transaction that occurred on Monday, January 11th. The shares were sold at an average price of $127.42, for a total value of $254,840.00. Following the completion of the sale, the director now directly owns 8,165 shares of the company’s stock, valued at $1,040,384.30. The disclosure for this sale can be found here. Insiders sold a total of 243,048 shares of company stock valued at $28,241,920 over the last three months. Insiders own 9.00% of the company’s stock.

A number of hedge funds have recently modified their holdings of the stock. Carroll Financial Associates Inc. acquired a new position in Q2 during the fourth quarter worth $239,000. HM Payson & Co. increased its position in Q2 by 235.5% during the third quarter. HM Payson & Co. now owns 728 shares of the technology company’s stock worth $66,000 after buying an additional 511 shares in the last quarter. Virtu Financial LLC purchased a new position in Q2 during the third quarter worth $352,000. Brinker Capital Investments LLC purchased a new position in Q2 during the third quarter worth $2,177,000. Finally, Paloma Partners Management Co purchased a new position in Q2 during the third quarter worth $537,000.

About Q2

Q2 Holdings, Inc provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. The company offers Q2 Digital Banking and Transactions, a browser-based digital banking solution that delivers RCFI-branded digital banking capabilities; Q2mobility App, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture; and Q2 Person-to-Person Payments, a partnered integrated person-to-person payments solution.

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