Expert Outlook: Q2 Holdings Through The Eyes Of 12 Analysts

12 analysts have shared their evaluations of Q2 Holdings QTWO during the recent three months, expressing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 2 6 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 4 1 4 0 0
3M Ago 0 0 2 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $99.67, a high estimate of $126.00, and a low estimate of $76.00. Witnessing a positive shift, the current average has risen by 27.63% from the previous average price target of $78.09.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Q2 Holdings's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Arvind Ramnani Keybanc Announces Overweight $126.00 -
Peter Heckmann DA Davidson Raises Neutral $86.00 $76.00
James Faucette Morgan Stanley Raises Equal-Weight $90.00 $65.00
Dominick Gabriele Compass Point Raises Buy $107.00 $91.00
Charles Nabhan Stephens & Co. Raises Overweight $100.00 $75.00
Daniel Perlin RBC Capital Raises Sector Perform $105.00 $76.00
Adam Hotchkiss Goldman Sachs Raises Buy $103.00 $86.00
Terry Tillman Truist Securities Raises Buy $100.00 $78.00
Mayank Tandon Needham Raises Buy $120.00 $90.00
Arvind Ramnani Piper Sandler Raises Neutral $93.00 $74.00
Andrew Schmidt Citigroup Raises Neutral $90.00 $72.00
Peter Heckmann DA Davidson Maintains Neutral $76.00 $76.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Q2 Holdings. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Q2 Holdings compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Q2 Holdings's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Q2 Holdings's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Q2 Holdings analyst ratings.

Unveiling the Story Behind Q2 Holdings

Q2 Holdings Inc. is a provider of cloud-based virtual banking solutions for regional financial institutions to deliver mobile banking services to retail and commercial end-users who wish to bank anywhere and anytime. Its solutions operate on an integrated tablet-first platform which provides financial institutions a comprehensive view of account holder activity and meets the regulatory and security requirements applicable to the industry. The firm generates revenue from subscription-based arrangements for software offerings. A large majority of the firm's revenue is generated in the United States.

Q2 Holdings: Financial Performance Dissected

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Over the 3 months period, Q2 Holdings showcased positive performance, achieving a revenue growth rate of 12.94% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Q2 Holdings's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -6.74% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Q2 Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -2.42%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Q2 Holdings's ROA excels beyond industry benchmarks, reaching -0.94%. This signifies efficient management of assets and strong financial health.

Debt Management: Q2 Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.09, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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