Q2 stock: buy or sell?

QTWO stock price: $81.59 0.12% At close on December 6th, 2019

Updated on:
December 6th, 2019

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After sliding for 4 days, Dec/6 Q2 stayed steady a neutral 0.12%, closing at $81.59. December 6th session broke a read streak of 4 days.

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

Should I buy Q2 stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to choose your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Q2 stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Q2 stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 15 ratings published for QTWO stock in the last month.

The general sentiment of these ratings is bullish for QTWO stock, with 14 positive ratings.
Is QTWO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-12Canaccord GenuityHoldBuy
2019-8-9SunTrust Banksn/aBuy
2019-8-9KeyCorpn/aOverweight
2019-8-8Stifel Nicolausn/aBuy
2019-8-8Royal Bank of Canadan/aOutperform
2019-8-8JPMorgan Chase & Co.n/aOverweight
2019-8-28KeyCorpn/aOverweight
2019-8-13Compass Pointn/aBuy
2019-5-9Wells Fargo & Con/aOutperform
2019-4-3StephensOverweightEqual Weight
2019-3-1SunTrust BanksHoldBuy
2019-3-1Needham & Company LLCBuyBuy
2019-3-1Needham & Company LLCn/aBuy
2019-3-1KeyCorpOverweightOverweight
2019-3-1KeyCorpOverweightOverweight

Q2 stock analysis

Daily outlook

After sliding for 4 sessions, December/6 Q2 stayed constant a neutral 0.12%, closing at $81.59.

After sliding for 4 sessions, December/6 Q2 stayed constant a neutral 0.12%, closing at $81.59. In the last 25 days when QTWO stock price broke up the SMA200d line, it gained $7.64 (10.33%). QTWO is retaking the upward trend marking a new rising bottom heading to break out over $85.74. On August, QTWO hit a new all time high, pushing higher than on August tops. Check different trading setups that use ATHs as triggers.

QTWO stock chart (daily)

Weekly outlook

After climbing for 4 weeks, this week Q2 slipped a rough -3.36%, closing at $81.59. By mid November QTWO rocketed an outstanding 8.20% in just one week. By mid October QTWO collapsed a frightening -6.23% in just one week.

Q2 is in a glaring downtrend, marking consecutive declining tops and bottoms. Now is trading in between the - range. There is an opportunity to rebound and reverse this situation if price can hold above the level. Since mid November when QTWO stock price broke up the SMA40w line, it gained $9.53 (13.23%). Far behind is the all-time high Q2 hit by mid August and since then the price is -12.86% below that top. Since SMA20d and SMA40w crossed up early April, QTWO price climbed $12.33 per share (17.80%).

QTWO stock chart (weekly)

Q2 stock price history

Q2 stock went public on March 20th, 2014 with a price of $16.251. Since then, QTWO stock grew a 402.10%, with an average of 80.40% per year. If you had invested right after QTWO's IPO a $1,000 in Q2 stock in 2014, it would worth $4,021.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Q2 stock historical price chart

QTWO stock reached all-time highs on August with a price of $93.63.

Q2 stock price target is $90.30

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' QTWO stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 13 price targets for QTWO stock:
QTWO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-12Canaccord GenuityUpgrades$70.00$97.0038.6%
2019-8-9SunTrust BanksRaises Target$84.00$100.0019%
2019-8-9KeyCorpRaises Target$83.00$98.0018.1%
2019-8-8Stifel NicolausRaises Target$74.00$82.0010.8%
2019-8-8Royal Bank of CanadaReiterates$79.00$94.0019%
2019-8-8JPMorgan Chase & Co.Raises Target$78.00$90.0015.4%
2019-8-28KeyCorpReiterates$98.00$102.004.1%
2019-8-13Compass PointInitiatesn/a$105.00-
2019-5-9Wells Fargo & CoReiterates$75.00$80.006.7%
2019-3-1Needham & Company LLCReiterates$70.00$80.0014.3%
2019-3-1Needham & Company LLCRaises Target$70.00$80.0014.3%
2019-3-1KeyCorpReiterates$77.00$83.007.8%
2019-3-1KeyCorpRaises Target$77.00$83.007.8%
(in average)$77.90$90.3016.0%
Moving in a range from $105.00 and $80.00, the price target for Q2 stock is $90.30. In average, analysts' outlook on QTWO price forecast is positive, improving the forecast by a 16.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Q2 failed experts on February when it reported an Earnings per Share (EPS) of $-0.11 when the market consensus was $-0.18.
QTWO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.17n/a
2017-Q2-n/a-0.18n/a
2017-Q32017-11-01-0.030.03n/a
2017-Q42018-02-140.010.05400.0%
2018-Q12018-05-02-0.16-0.1n/a
2018-Q22018-08-07-0.14-0.14n/a
2018-Q32018-11-06-0.16-0.08n/a
2018-Q42019-02-13-0.18-0.11n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Q2 annual revenues skyrocketed an extraordinary 24.29% to $241.10 million USD from $193.98 marked in 2017. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) depreciated a -1.19% to -14.68%.

QTWO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$57 M-$-17.68 M-31.1%-
2014$79 M39.14%$-19.63 M-24.8%11.05%
2015$109 M37.58%$-25.06 M-23.0%27.65%
2016$150 M37.99%$-36.35 M-24.2%45.05%
2017$194 M29.13%$-26.16 M-13.5%-28.03%
2018$241 M24.29%$-35.40 M-14.7%35.29%

Quarterly financial results

Q2 reported $67.18 M in sales for 2018-Q4, a 10.96% up compared to previous quarter. Reported quarter income marked $-11.86 million with a profit margin of -17.66%. Profit margin decreased a -3.03% compared to previous quarter when profit margin was -14.63%. When comparing sales to same quarter last year, Q2 sales marked an astounding increase and boosted a 29.93%. Looking back to recent quarterly results, Q2 posted 7 positive quarters in a row.
QTWO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$45 M-$-7.04 M-15.8%-
2017-Q2$48 M6.96%$-7.82 M-16.4%11.08%
2017-Q3$50 M5.22%$-5.78 M-11.5%-26.06%
2017-Q4$52 M3.17%$-5.52 M-10.7%-4.51%
2018-Q1$55 M6.01%$-6.05 M-11.0%9.55%
2018-Q2$59 M6.87%$-8.63 M-14.7%42.64%
2018-Q3$61 M3.36%$-8.86 M-14.6%2.69%
2018-Q4$67 M10.96%$-11.86 M-17.7%33.91%

Q2 ownership

When you are planning to buy a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Q2, 7.45% of all outstanding shares are owned by its staff.

Bearish positions for QTWO stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Q2:

QTWOACIWEPAYFISFISV
Market cap$3.9 B$4.2 B$2.1 B$85.2 B$77.8 B
Total shares48.2 M115.6 M44.0 M614.6 M679.9 M
Float shares45.6 M112.6 M42.9 M611.6 M567.1 M
  - Institutional holdings (%)101.1%103.3%98.6%92.3%91.1%
  - Insider holdings (%)7.4%2.1%2.2%0.6%0.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Q2 summary

Friday, December 6th, 2019
Open$82.35
Close$81.59
Day range$81.36 - $83.01
Previous close$81.49
Session gain0.12%
Average true range$1.87
50d mov avg$75.82
100d mov avg$79.74
200d mov avg$75.98
Daily patternlb02a
Weekly pattern lt02a

Q2 performance

To measure stock performance is always good to benchmark with competitors or related stocks. We compared Q2 against ACI Worldwide, Bottomline Technologies, Fidelity National Information Services, Fiserv, Jack Henry & Associates and NCR in the following table:
Stock3m6m12m
QTWOQ2-6.72%18.81%66.31%
ACIWACI Worldwide17.49%12.59%34.06%
EPAYBottomline Techno...17.04%6.31%-5.34%
FISFidelity National...0.93%13.72%34.04%
FISVFiserv5.40%27.58%53.18%
JKHYJack Henry & Asso...2.24%11.87%13.91%
NCR -0.21%2.77%26.43%

Q2 competitors

We selected a few stocks to conform a list of Q2 competitors to watch if you are interested in investing in QTWO: