Q2 (NYSE:QTWO) Price Target Cut to $70.00 by Analysts at Needham & Company LLC

Q2 (NYSE:QTWO) had its target price decreased by analysts at Needham & Company LLC from $90.00 to $70.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a “buy” rating on the technology company’s stock. Needham & Company LLC’s target price would indicate a potential upside of 22.73% from the company’s current price.

QTWO has been the topic of a number of other research reports. Royal Bank Of Canada lowered their price objective on Q2 from $102.00 to $86.00 and set a “sector perform” rating on the stock in a report on Thursday, November 6th. Stifel Nicolaus reduced their price objective on shares of Q2 from $110.00 to $90.00 and set a “buy” rating for the company in a research note on Wednesday, October 15th. Cantor Fitzgerald lowered their target price on shares of Q2 from $110.00 to $90.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 29th. Weiss Ratings reissued a “hold (c-)” rating on shares of Q2 in a research report on Thursday, January 22nd. Finally, DA Davidson upgraded shares of Q2 from a “neutral” rating to a “buy” rating and set a $82.00 price target for the company in a report on Tuesday, February 3rd. Nine analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $90.93.

Q2 Stock Down 0.5%

Shares of QTWO opened at $57.04 on Thursday. The firm has a market cap of $3.57 billion, a price-to-earnings ratio of 118.82 and a beta of 1.36. The company’s fifty day moving average is $68.50 and its 200-day moving average is $71.17. Q2 has a 12 month low of $54.63 and a 12 month high of $102.07.

Insider Transactions at Q2

In related news, insider Kirk L. Coleman sold 8,559 shares of the business’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $73.68, for a total transaction of $630,627.12. Following the transaction, the insider directly owned 269,128 shares in the company, valued at $19,829,351.04. The trade was a 3.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Himagiri K. Mukkamala sold 3,024 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $73.68, for a total value of $222,808.32. Following the completion of the sale, the chief operating officer owned 96,046 shares of the company’s stock, valued at $7,076,669.28. This represents a 3.05% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 20,883 shares of company stock worth $1,547,778. 0.31% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of QTWO. Vanguard Group Inc. lifted its position in Q2 by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 7,995,133 shares of the technology company’s stock worth $576,929,000 after purchasing an additional 82,827 shares during the period. Capital Research Global Investors raised its stake in shares of Q2 by 86.2% in the 4th quarter. Capital Research Global Investors now owns 3,141,044 shares of the technology company’s stock valued at $226,658,000 after buying an additional 1,454,076 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Q2 by 4.8% during the 2nd quarter. Invesco Ltd. now owns 2,803,611 shares of the technology company’s stock worth $262,390,000 after acquiring an additional 128,387 shares during the period. William Blair Investment Management LLC boosted its position in shares of Q2 by 25.9% during the 4th quarter. William Blair Investment Management LLC now owns 2,694,718 shares of the technology company’s stock valued at $194,451,000 after acquiring an additional 553,713 shares in the last quarter. Finally, Wasatch Advisors LP increased its stake in Q2 by 2.9% in the third quarter. Wasatch Advisors LP now owns 2,158,053 shares of the technology company’s stock valued at $156,221,000 after acquiring an additional 60,016 shares during the period.

Key Q2 News

Here are the key news stories impacting Q2 this week:

• Positive Sentiment: Strong top-line growth: Q4 revenue was $208.2M, up ~14% year‑over‑year; full‑year 2025 revenue was $794.8M (+14%). These results underline continued subscription expansion and higher recurring revenue. Business Wire: Q2 Results
• Positive Sentiment: Revenue guidance modestly constructive: FY‑2026 revenue was guided to $871.0M–$878.0M (roughly in line with the ~$873M consensus) and Q1‑2026 revenue was guided to $212.5M–$216.5M (above the ~$209.7M consensus) — signaling continued top‑line momentum.
• Neutral Sentiment: Operational catalysts remain: analysts and coverage pieces highlight subscription growth, cloud migration and AI initiatives as the multi‑year growth drivers and cross‑sell opportunities to expand margins over time. Yahoo Finance: Q4 Deep Dive
• Negative Sentiment: Mixed/weak earnings metrics pressured the stock: headlines show a GAAP EPS miss versus analyst expectations while adjusted/non‑GAAP metrics reportedly beat — the inconsistency created investor concern and volatility. Coverage noted the stock sell‑off despite the revenue beat. Investing.com: Shares Tumble
• Negative Sentiment: Management did not provide clear EPS guidance in the update (EPS fields were left blank in the initial guidance entries), which increases short‑term uncertainty around profitability and analyst modeling assumptions.
• Neutral Sentiment: Investor takeaway: the story remains revenue‑led with attractive secular drivers (SaaS + AI + cross‑sell), but near‑term stock moves are being driven by earnings clarity, GAAP vs. adjusted results, and the absence of explicit EPS guidance. For traders, the reaction reflects short‑term risk around margin/earnings visibility; for longer‑term investors the revenue/growth commentary remains constructive. Seeking Alpha: Earnings Call Transcript

Q2 Company Profile

Q2 Holdings, Inc develops and delivers cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences. The company’s core offerings include the Q2 Platform, a comprehensive suite of online and mobile banking applications for retail and commercial customers, as well as digital onboarding, payments, and fraud prevention tools. Q2’s platform also provides analytics and reporting capabilities designed to help financial institutions tailor products, optimize workflows, and drive engagement.

Founded in 2004 and headquartered in Austin, Texas, Q2 serves hundreds of financial institutions across the United States and Canada.