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

Zacks Investment Research cut shares of Q2 (NYSE:QTWO) from a hold rating to a sell rating in a research note released on Wednesday, 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 brokerages also recently issued reports on QTWO. Stephens downgraded shares of Blackbaud from an overweight rating to an equal weight rating and set a $86.00 price target for the company. in a research note on Wednesday, April 3rd. Wells Fargo & Co decreased their price target on shares of Teva Pharmaceutical Industries from $18.00 to $17.00 and set a market perform rating for the company in a research note on Thursday, May 9th. William Blair assumed coverage on shares of Q2 in a research note on Monday, April 1st. They issued an outperform rating and a $69.71 price target for the company. Finally, Craig Hallum decreased their price target on shares of Green Dot from $115.00 to $100.00 and set a buy rating for the company in a research note on Thursday, May 9th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and eleven have given a buy rating to the company. Q2 presently has a consensus rating of Buy and a consensus target price of $71.73.

Shares of Q2 stock opened at $81.18 on Wednesday. Q2 has a 52-week low of $43.41 and a 52-week high of $81.54. The business has a 50 day moving average price of $75.03. The company has a quick ratio of 2.08, a current ratio of 2.08 and a debt-to-equity ratio of 1.40.

Q2 (NYSE:QTWO) last issued its quarterly earnings results on Tuesday, May 7th. The technology company reported ($0.25) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.21). Q2 had a negative return on equity of 16.48% and a negative net margin of 18.89%. The firm had revenue of $71.30 million during the quarter, compared to analysts’ expectations of $70.67 million. During the same quarter in the prior year, the firm earned ($0.14) EPS. The firm’s revenue was up 30.1% compared to the same quarter last year. On average, equities research analysts anticipate that Q2 will post -0.65 EPS for the current fiscal year.

In other news, EVP Rekha Garapati sold 2,225 shares of the business’s stock in a transaction that occurred on Monday, June 10th. The shares were sold at an average price of $70.20, for a total transaction of $156,195.00. Following the completion of the sale, the executive vice president now owns 53,285 shares in the company, valued at approximately $3,740,607. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director James Offerdahl sold 2,000 shares of Q2 stock in a transaction on Wednesday, May 22nd. The shares were sold at an average price of $73.40, for a total transaction of $146,800.00. Following the completion of the transaction, the director now directly owns 6,433 shares in the company, valued at $472,182.20. The disclosure for this sale can be found here. Insiders have sold a total of 534,420 shares of company stock valued at $39,584,736 in the last 90 days. Insiders own 12.80% of the company’s stock.

Several institutional investors have recently made changes to their positions in QTWO. Norges Bank acquired a new position in shares of Q2 in the 4th quarter valued at $25,818,000. Wasatch Advisors Inc. increased its holdings in shares of Q2 by 39.2% in the 1st quarter. Wasatch Advisors Inc. now owns 1,043,133 shares of the technology company’s stock valued at $72,247,000 after acquiring an additional 293,892 shares during the period. Macquarie Group Ltd. increased its holdings in shares of Q2 by 22.0% in the 4th quarter. Macquarie Group Ltd. now owns 1,243,394 shares of the technology company’s stock valued at $61,610,000 after acquiring an additional 223,815 shares during the period. Eagle Asset Management Inc. acquired a new position in shares of Q2 in the 1st quarter valued at $10,913,000. Finally, BlackRock Inc. increased its holdings in shares of Q2 by 5.9% in the 4th quarter. BlackRock Inc. now owns 2,683,111 shares of the technology company’s stock valued at $132,948,000 after acquiring an additional 150,440 shares during the period. 98.71% of the stock is currently owned by institutional investors and hedge funds.

Q2 Company Profile

Q2 Holdings, Inc provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. It 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 secure and integrated person-to-person payments solution.

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