Q2 (NYSE:QTWO) Sets New 12-Month Low on Analyst Downgrade

Q2 Holdings, Inc. (NYSE:QTWO)’s share price reached a new 52-week low during mid-day trading on Thursday after Truist Financial lowered their price target on the stock from $110.00 to $75.00. Truist Financial currently has a buy rating on the stock. Q2 traded as low as $53.54 and last traded at $54.92, with a volume of 10272 shares trading hands. The stock had previously closed at $56.62.

A number of other brokerages also recently issued reports on QTWO. UBS Group set a $82.00 price objective on Q2 in a research report on Tuesday, February 3rd. Royal Bank Of Canada lowered their price target on Q2 from $102.00 to $86.00 and set a “sector perform” rating for the company in a research report on Thursday, November 6th. Stifel Nicolaus cut their price objective on shares of Q2 from $110.00 to $90.00 and set a “buy” rating on the stock in a research report on Wednesday, October 15th. Zacks Research downgraded shares of Q2 from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 9th. Finally, Cantor Fitzgerald lowered their target price on shares of Q2 from $110.00 to $90.00 and set an “overweight” rating for the company in a report on Wednesday, October 29th. Nine equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Q2 presently has a consensus rating of “Moderate Buy” and an average price target of $88.60.

Insider Activity

In other Q2 news, COO Himagiri K. Mukkamala sold 3,024 shares of the stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $73.68, for a total transaction of $222,808.32. Following the completion of the sale, the chief operating officer directly owned 96,046 shares of the company’s stock, valued at approximately $7,076,669.28. This represents a 3.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Kirk L. Coleman sold 8,559 shares of the business’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 transaction of $630,627.12. Following the transaction, the insider owned 269,128 shares of the company’s stock, valued at approximately $19,829,351.04. This trade represents a 3.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 20,883 shares of company stock worth $1,547,778. 0.31% of the stock is currently owned by company insiders.

More 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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Campbell & CO Investment Adviser LLC acquired a new stake in shares of Q2 during the 3rd quarter worth approximately $1,559,000. Principal Financial Group Inc. boosted its holdings in Q2 by 502.5% during the third quarter. Principal Financial Group Inc. now owns 301,917 shares of the technology company’s stock worth $21,856,000 after buying an additional 251,807 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its position in Q2 by 15.0% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 158,328 shares of the technology company’s stock valued at $14,818,000 after buying an additional 20,643 shares during the period. Federated Hermes Inc. increased its holdings in Q2 by 5.5% in the third quarter. Federated Hermes Inc. now owns 788,374 shares of the technology company’s stock valued at $57,070,000 after buying an additional 41,229 shares in the last quarter. Finally, Castleark Management LLC acquired a new stake in shares of Q2 during the 2nd quarter valued at about $5,341,000.

Q2 Stock Performance

The stock has a market cap of $3.45 billion, a PE ratio of 113.97 and a beta of 1.36. The company has a 50 day moving average of $68.50 and a two-hundred day moving average of $71.17.

About Q2

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.