Q2 Holdings, Inc.: A Look at Its Current Rating and Quarterly Earnings Results
As a provider of digital banking and lending solutions to a wide range of companies, Q2 Holdings, Inc. (NYSE:QTWO) has received an average rating of “Hold” from thirteen research firms covering the company, according to recent reports by Bloomberg. Among these thirteen firms, six have issued a hold recommendation for the stock, three have given their buy recommendation while one has rated it a sell.
Over the last year, brokerages that updated their coverage on QTWO gave an average 12-month price target of $38.50. The technology company’s quarterly earnings results were released on February 21st with ($0.23) earnings per share (EPS), which was shy of the consensus estimate of ($0.13) by ($0.10). It registered revenue amounting to $146.54 million in the same quarter compared to the expected $149.17 million as estimated by analysts.
While still adjusting its financial strategies amidst market challenges, Q2 had a negative net margin standing at 19.27% and a negative return on equity standing at -11.58%. Despite this overall result for the fiscal year however, equity researchers are forecasting that it will post -0.72 earnings per share for this current fiscal year.
Q2 Holdings’ services were designed with various customers in mind, ranging from financial technology companies to alternative finance institutions looking to incorporate bank relationships into their customer engagement and servicing strategies.
All in all, we can see that despite some mixed results or even underperformance as demonstrated in its earnings report over its previous period and only receiving moderate ratings among analysts so far due to potential weaknesses most apparent around company fundamentals and less than stable balance sheets— Q2 Holdings continues representing an innovative player in today’s complex world of financial technology.Let us wait with bated breath as experts continue monitoring its key drivers to better appreciate the overall future prospects of this tech giant.
Q2 Holdings, Inc. Faces Changes in Analyst and Investor Views
Q2 Holdings, Inc is a digital banking and lending solutions provider that caters to financial institutions, alternative finance companies, financial technology companies and other innovative firms who wish to integrate banking into their customer service and engagement strategies. Recently, a few equities research analysts have commented on the company’s performance. Canaccord Genuity Group downgraded shares of Q2 from a “buy” rating to a “hold,” with analysts reducing their price target on the stock from $60.00 to $25.00 in a report on March 15th. Similarly, Robert W. Baird downgraded Q2 from an “outperform” rating to a “neutral” rating in its January 31st report while DA Davidson cut off their price target for the share from $38.00 to $30.00 in its April 27th report.
After such reviews, StockNews.com upgraded shares of Q2 recently from “sell” to ‘hold.’ In addition, Stephens dropped its price target on the stock from $38.00to $32.00and set an “equal weight” rating on it in February this year.Q2 stocks opened at $22.35 on Friday with the company having a market cap of around $1.30 billion and 50-day moving average of $24.96 as well as a PE ratio of -11.83.
Institutional investors have also been making changes in their positions within the business lately.Among them,Rhumbline Advisers bought an additional1,997sharesofQ2 Holdingsstock during the first quarter worth approximately$3,549,000making upfor3%assets under management.Thebank also sees new participationwithinitsmodel portfolio.Integrated Wealth Concepts LLC purchased anew stakein shares of Q2 Holdings worth around$145Mduringthe last reported period.Roger Krone’s Chesapeake Asset Management LLC hasincreaseditsstakesinQTWO,according to the 13F filings of theinstitutional investor. Thecompanyalso secured1,770shares of the company.Furthermore, MetLife Investment Management LLC boosted its positionin QTWO by 54.1% during the first quarter.
On the insider side, EVP Kimberly Rutledge sold8,711sharesofQ2’s stock in a transaction that occurred on March 6th for an average price of $32.06, totaling to$279,274.66.This transactionwas disclosed through SEC filing.Through this sale,Rutledgehas now stacked up99,955 shares of Q2 Holdings stockworth $3.2M.
Given these developments and changes in stakeholders positions within Q2 Holdings Inc., it looks like there might be some significant developmental prospects upcoming with this digital banking solutions provider. Investors are closely watching the stock performance and looking forward to future updates as well as announcements from Q2 on its plans and strategic direction going forward.
