Zacks Investment Research Lowers Q2 (QTWO) to Sell

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Zacks Investment Research downgraded shares of Q2 (NYSE:QTWO) from a hold rating to a sell rating in a research report sent to investors on Friday morning.

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 equities analysts have also recently issued reports on QTWO. Needham & Company LLC raised their price objective on Q2 from $62.00 to $70.00 and gave the stock a buy rating in a research note on Thursday, August 9th. Loop Capital raised their price objective on Q2 to $67.00 and gave the stock an in-line rating in a research note on Thursday, August 9th. Craig Hallum set a $70.00 price objective on Q2 and gave the stock a buy rating in a research note on Thursday, August 9th. Stifel Nicolaus restated a buy rating and set a $68.00 price objective on shares of Q2 in a research note on Thursday, August 9th. Finally, DA Davidson raised their price objective on Q2 to $52.00 and gave the stock a neutral rating in a research note on Thursday, August 9th. One research analyst has rated the stock with a sell rating, eight have given a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of Hold and an average target price of $60.07.

Shares of Q2 stock traded down $1.66 on Friday, hitting $51.54. 2,198 shares of the company’s stock traded hands, compared to its average volume of 383,047. The stock has a market cap of $2.28 billion, a P/E ratio of -107.73 and a beta of 1.49. The company has a current ratio of 6.00, a quick ratio of 6.00 and a debt-to-equity ratio of 1.12. Q2 has a 52-week low of $36.25 and a 52-week high of $67.10.

Q2 (NYSE:QTWO) last released its earnings results on Tuesday, August 7th. The technology company reported $0.01 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.14) by $0.15. Q2 had a negative return on equity of 14.66% and a negative net margin of 12.07%. The company had revenue of $58.57 million during the quarter, compared to analysts’ expectations of $58.34 million. As a group, equities analysts predict that Q2 will post -0.53 earnings per share for the current fiscal year.

In other news, Director R. H. Seale sold 134,719 shares of the firm’s stock in a transaction on Tuesday, October 2nd. The stock was sold at an average price of $57.06, for a total transaction of $7,687,066.14. Following the transaction, the director now directly owns 381,887 shares of the company’s stock, valued at $21,790,472.22. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP John E. Breeden sold 7,500 shares of the firm’s stock in a transaction 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 transaction, the executive vice president now directly owns 70,247 shares in the company, valued at $3,535,531.51. The disclosure for this sale can be found here. Insiders sold 1,452,477 shares of company stock worth $85,704,818 over the last quarter. 17.90% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently modified their holdings of QTWO. BlackRock Inc. grew its holdings in Q2 by 18.6% during the second quarter. BlackRock Inc. now owns 2,462,356 shares of the technology company’s stock worth $140,477,000 after acquiring an additional 385,863 shares during the period. Artisan Partners Limited Partnership grew its holdings in Q2 by 18.5% during the second quarter. Artisan Partners Limited Partnership now owns 1,971,546 shares of the technology company’s stock worth $112,477,000 after acquiring an additional 308,155 shares during the period. Macquarie Group Ltd. grew its holdings in Q2 by 27.6% during the second quarter. Macquarie Group Ltd. now owns 825,602 shares of the technology company’s stock worth $47,101,000 after acquiring an additional 178,649 shares during the period. Victory Capital Management Inc. grew its holdings in Q2 by 11.8% during the third quarter. Victory Capital Management Inc. now owns 540,054 shares of the technology company’s stock worth $32,700,000 after acquiring an additional 57,079 shares during the period. Finally, Northern Trust Corp grew its holdings in Q2 by 14.6% during the second quarter. Northern Trust Corp now owns 439,623 shares of the technology company’s stock worth $25,081,000 after acquiring an additional 56,040 shares during the period. 93.17% of the stock is currently owned by institutional investors.

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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