Q2 Holdings Stock: A Deep Dive Into Analyst Perspectives (12 Ratings)

Q2 Holdings QTWO underwent analysis by 12 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 8 1 3 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 7 1 3 0 0
3M Ago 0 0 0 0 0

Analysts have recently evaluated Q2 Holdings and provided 12-month price targets. The average target is $61.5, accompanied by a high estimate of $68.00 and a low estimate of $50.00. Surpassing the previous average price target of $52.67, the current average has increased by 16.76%.

price target chart

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Q2 Holdings. The following summary 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
Terry Tillman Truist Securities Raises Buy $68.00 $65.00
Peter Heckmann DA Davidson Raises Buy $65.00 $58.00
Arvind Ramnani Piper Sandler Raises Neutral $61.00 $47.00
Mark Palmer BTIG Raises Buy $60.00 $48.00
James Faucette Morgan Stanley Raises Equal-Weight $50.00 $40.00
Adam Hotchkiss Goldman Sachs Raises Buy $59.00 $52.00
Matthew Hedberg RBC Capital Raises Sector Perform $60.00 $46.00
Terry Tillman Truist Securities Raises Buy $65.00 $60.00
Jon Vruwink Baird Raises Outperform $65.00 $60.00
Mayank Tandon Needham Raises Buy $65.00 $58.00
Parker Lane Stifel Raises Buy $60.00 $48.00
Terry Tillman Truist Securities Raises Buy $60.00 $50.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Q2 Holdings. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Q2 Holdings compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Q2 Holdings's future value. Comparing current and prior targets offers insights into analysts' evolving 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.

Get to Know Q2 Holdings Better

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.

Key Indicators: Q2 Holdings's Financial Health

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Positive Revenue Trend: Examining Q2 Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.17% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Q2 Holdings's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -8.36%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Q2 Holdings's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -3.03%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Q2 Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.14%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Q2 Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.17, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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

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