87.50 -0.20 (-0.22%)
After hours: 4:26PM EST
|Bid||87.52 x 900|
|Ask||87.58 x 900|
|Day's Range||86.48 - 88.12|
|52 Week Range||53.62 - 93.63|
|Beta (5Y Monthly)||1.23|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 10, 2020 - Feb 16, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||91.73|
Growing financial technology company leases new building at Aspen Lake Office Park. Q2 builds apps for banks and credit unions. It was the 20th-largest publicly traded company in Austin in 2018 with $241.10 million in revenue, although it is bringing in much more in sales nowadays because of recent acquisitions.
We expect a great singer to hit those beautiful high notes, right? We also count on the greatest basketball players to send the ball swishing through the net almost every single time.The same logic applies to the pros on Wall Street. We count on the experts to guide us to the right choice with their depth of knowledge, analytical precision and overall mastery of the art of investing.As is well known by now, 2019 has presented rich offerings to investors. After such an extended run, though, will the market keep soaring higher? Impossible to know, but we can turn to the most seasoned veterans in the field to shine a light on possibilities.BTIG’s financial sector analyst Mark Palmer is one such expert. The 5-star analyst ranks as one of the Street’s most reliable voices, as his track record can attest to. Recently, Palmer reassessed some of the stocks covered by BTIG and noted 3 names which he thinks are set for more growth ahead.According to TipRanks, a company that tracks and measures the performance of analysts, the Street seems to be in agreement with Palmer. Let’s dive in.Paypal Holdings (PYPL)Paypal hardly needs any introduction. The digital payment processor has been an ever-present feature since the turn of the century, meeting consumers’ online shopping and money transfer needs back in the days when online shopping was just kicking into gear.The payments giant has been on a shopping spree over the last couple of years. Only last week, Paypal completed the acquisition of a 70% equity interest in Chinese payments provider, GoPay, making it the first foreign online payments platform in China.This comes hot on the heels of November’s acquisition of Honey Science Corporation. Honey Science is the creator of a browser extension that helps shoppers find the best online deals. It is a profitable company, with 2018 annual revenue of over $100 million alongside enormous growth of more than 100%. Enough reasons, then, for Paypal to pull the trigger on Honey.Palmer thinks the new addition is an effort by Paypal to “make its platform more robust and differentiated in the face of increasing competition from tech companies such as Facebook Pay.”“We believe PYPL’s acquisition of Honey will help the company to make significant advances toward two of the goals it has pursued since spinning off from eBay (EBAY) in 2015: ubiquity and increased customer engagement. Honey should help PYPL to capture a consumer’s attention at the front end of the shopping funnel in addition to at its back end where it has become increasingly dominant,” the analyst said.With this in mind, Palmer reiterated a Buy rating on PYPL, alongside a price target of $130, implying potential upside of 20%. (To watch Palmer’s track record, click here)And what does the Street think of Paypal’s prospects? The Street is not far behind the 5-star analyst, as it happens. 23 Buys and 3 Hold ratings over the last three months bestow Strong Buy status on the digital payment leader. More that 16% gains could be lining investors’ pockets over the coming year, should the average price target of $126.09 be met. (See Paypal stock analysis on TipRanks) Q2 Holdings Inc (QTWO)Digital banking solutions provider Q2 also has not been shy on acquisitions. Following the 2018 purchases of Gro Solutions and Cloud Lending Solutions, QTWO recently completed the acquisition of PrecisionLender, a fast-growing enterprise SaaS provider for financial institutions.The company’s cloud-based virtual banking solutions for smaller regional and community financial institutions (RCFIs) seem to be working. In November, QTWO released its latest earnings report with an abundance of good news: record breaking registered users and bookings. On top of this, revenue of $80 million marked a 32% year-over-year increase and a fourth quarter in a row of 30%-plus revenue growth.Palmer views QTWO as “an attractive takeout target,” noting its “increasingly robust platform has become more of a threat to its larger competitors.“ Palmer opined, “Considering the company’s prospects to sustain its growth through winning new accounts, increasing penetration of existing accounts by promoting digital usage, and cross-selling across both the deposit and lending sides of the banks and credit unions it serves… We believe shares of QTWO are inexpensive in light of the company’s growth prospects, particularly given the expansion of the company’s platform beyond digital banking with the additions of Q2 Open, Cloud Lending, Gro and PrecisionLender.”As a result, the 5-star analyst kept the Buy rating and $95 price target. Palmer, therefore, sees potential for a 15% gain in the coming year.Q2 currently boasts a full house of only Buy ratings, 6 to be precise, meaning the company has a Strong Buy analyst consensus. The average price target is $93.80, providing upside potential of 14% from the current price. (See Q2 Holdings stock analysis on TipRanks) See also: 3 “Strong Buy” Stocks Poised to Ride the 5G WaveSutter Rock Capital Corporation (SSSS)Sutter Rock is an investment fund with an interest in late stage high-growth, venture-backed private companies. So, essentially, by investing in SSSS, you are investing in the company’s portfolio.According to Palmer, the investment firm’s market cap of $130 million is “a reminder of how wide the gap is between the company’s NAV (net asset value) and its deeply discounted valuation.”The net asset value refers to the amount of shares that make up the company’s holdings. SSSS has a stake in Coursera, Palantir, Ozy Media, and Course Hero amongst others. In Q3, it sold all its shares in Dropbox for $9.2 million in net proceeds and a realized gain of $1.7 million, and in LYFT, for net proceeds of $13.3 million and a realized gain of $9 million.Additionally, Sutter recently announced a buy-back of $10 million of its common shares, always a promising sign for investors. The sentiment is shared by Palmer, who noted, “We believe the stock is very inexpensive relative to its intrinsic value and that its discount valuation has created an attractive entry point for small-cap investors. The company provides investors with a vehicle through which they can access late-stage venture capital-backed private companies with strong operating fundamentals and the potential for scaled valuation growth in which they might otherwise not be able to invest.”Palmer, therefore, maintained the bullish recommendation, with a price target of $11.50. This indicates significant upside potential of 68%.Only one analyst has rated Sutter Rock over the last three months, joining Palmer in the Buy queue. Sutter, therefore, has a Moderate Buy consensus rating. The average price target of $11 is slightly below Palmer’s and implies gains of 61% in the new year. (See Sutter Rock stock-price forecast and analyst ratings) Check out these 5 ‘Strong Buy’ stocks that top Wall Street analysts recommend.
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Q2 Holdings, Inc. (QTWO), a leading provider of digital transformation solutions for banking and lending, today announced it has completed the acquisition of Lender Performance Group LLC (“PrecisionLender”) in a cash transaction valued at approximately $510 million. Based in Charlotte, North Carolina, PrecisionLender is one of the fastest growing enterprise SaaS providers of data-driven sales enablement, pricing and portfolio management solutions for financial institutions (“FIs”) globally. On Oct. 1, 2019, Q2 announced it had entered into an agreement to acquire PrecisionLender.
Q2 Holdings (QTWO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Q2 Holdings, Inc. , a leading provider of digital transformation solutions for banking and lending, will release its financial results for the third quarter of 2019 after market close on Wednesday, Nov.
Q2 Holdings, Inc. (QTWO), a leading provider of digital transformation solutions for banking and lending, announced today it has been named a 2020 CSO50 Awards winner from IDG’s CSO for Q2 TrustView, the first data governance and protection technology of its kind for banking and lending. Q2 TrustView, powered by ALTR, enhances Q2’s multilayered data management and protection approach and works to mitigate breaches in real time. “Account holder data is one of a financial institution’s greatest assets, which also makes it the highest-value target for bad actors,” said Lou Senko, chief information officer at Q2.
Q2 Holdings, Inc. (QTWO), a leading provider of digital transformation solutions for banking and lending, today announced a definitive agreement to acquire Lender Performance Group LLC (“PrecisionLender”) in a cash transaction valued at approximately $510 million, subject to certain closing conditions. Based in Charlotte, North Carolina, PrecisionLender is one of the fastest growing enterprise SaaS providers of data-driven sales enablement, pricing and portfolio management solutions for financial institutions (FIs) globally. PrecisionLender’s innovative data-driven platform is enhanced by Andi®, a digital enterprise coach powered by machine learning.
(Bloomberg) -- Customers of Square Inc., the Silicon Valley payments behemoth, might assume that the cash they send to friends on the platform is housed in a glassy building in Silicon Valley, tended to by hoodie-clad tech workers. Actually, that money is more likely to be sitting in a 117-year-old community bank in Iowa.Partnerships between high-flying tech companies and traditional banks, many of them tiny by comparison, are a key force behind the financial technology boom. Because virtually no tech companies have the license required to perform banking services, many of them partner with existing banks to offer a suite of services including checking accounts, credit cards and the back-end and regulatory work the tech companies aren’t equipped—or allowed—to handle.Now, driven by the tech industry’s thirst to jump into finance, a new crop of businesses are looking to broker the connections between tech and banks. One such business is Cambr, a little-known division of an investment company called StoneCastle, which counts Square and other fintechs as customers. StoneCastle works with more than 800 small banks, spread across the country, ready to take and hold deposits from Silicon Valley startups like Square.“Airbnb, one would argue they are one of the largest hotel chains that doesn't own a room,” said Josh Siegel, chief executive of StoneCastle Partners LLC. “Our network works in a similar way. We have an account at the bank, it's the room we rent, and we can rent it out to whoever we want.”Cambr’s service launched last year as a partnership between StoneCastle, which provides the bank connections, and digital banking platform Q2 Holdings Inc., which works on the software and programming. Square’s Cash App was one of Cambr’s first customers, Siegel said, and it has since added startups like Acorns Grow Inc., MoneyLion Inc., Qapital Inc. and robo-adviser Betterment LLC, in a recently announced deal.What Cambr aims to offer tech companies is a ready-made strategy to accept deposits that they wouldn’t otherwise have the license to handle. Here’s how it works: A tech company or startup might give Cambr as much as $100 billion of customers’ cash, and could then ask the service to spread the money around to potentially hundreds of different financial institutions. A result of spreading out the deposits is that more of the fintech’s cash is insured under the Federal Deposit Insurance Corp.’s $250,000-per-account guarantee, offering more coverage than if the money were deposited at a single institution.A Salve for Digital DisruptionThe partnership model, which has rapidly become the go-to for financial technology companies, does pose some risks for banks, particularly if fast-moving startups draw the ire of regulators, as has happened before. “The banks are the supervised entities so the buck stops with them,” said Brian Korn, partner and head of fintech practice at Manatt, Phelps & Phillips. “The regulators are waiting for situations where there’s a breakdown.”But many community banks have embraced such partnerships, seeing them as a salve in times of digital disruption. More deposits can allow small banks to grow and make more local loans. In Cedar Falls, Iowa, the 117-year-old Lincoln Savings Bank, which works with Cambr, has boosted its revenue by partnering with fintechs, said Mike McCrary, who runs e-commerce and emerging technology for the bank. McCrary said that when Lincoln Savings Bank considered how it could best position itself for the next 10 years, fintech partnerships were an obvious answer. “In order for us to be relevant years from now, there had to be something digital,” he said. “Now we’re putting a lot of resources into this area of our business,” including, he said, building out a new team dedicated to working with tech companies. While the partnerships have injected cash into many small banks, some industry watchers have wondered if those banks could be left in a lurch if fintechs eventually got their own banking charters. If they did, community banks could find themselves as direct competitors to tech companies, without the same digital capabilities. But so far tech companies have made scant progress toward winning banking charters, particularly as government concern over digital financial services has grown. Some members of the U.S. Federal Reserve have voiced concern over fintech’s risk management capabilities. And Facebook Inc.’s foray into cryptocurrency has drawn ire from lawmakers.One option for tech companies has been to apply for an Industrial Loan Charter, which would effectively grant them license to provide financial services. Square first applied for the charter in the fall of 2017, but its request shows no signs of being approved. Social Finance Inc. also applied for an ILC, but withdrew its application altogether.“It’s not easy to become a bank here, and we haven’t seen much traction in general with the ILC,” Matt Burton, partner at venture capital firm QED Investors, said. “What we have seen is continued demand for non-banks to offer banking solutions.”Picking PartnersPartnering with multiple small banks is just one option for fintechs. Some, like Apple Inc. which developed a credit card with Goldman Sachs Group Inc., have teamed up with one big bank instead. But there are advantages to Cambr’s many-bank strategy. Some tech companies favor “the network approach over the big bank because they can negotiate better rates because both parties are getting something they want,'' said Lindsay Davis, a senior analyst at CB Insights. Smaller banks are also more likely to play ball because they aren’t developing competing services.“For the big banks, they are optimizing for customer acquisition and cross-selling services,” Davis said. “So a tech firm getting into financial services might be cannibalizing an existing business.” Joe Yeres, Cambr’s vice president of business development, is partly responsible for brokering the connections with community institutions, and travels a few times a month to places like Waterloo, Iowa, and Kansas City, Mo., where some of the banks it works with are located. The trips were eye-opening, Yeres said.“I was born and raised in New York metro, so the whole thing is a little funny to me,” Yeres said. “I was done with one of the leads of the banking team, and we went out for drinks after work one day, and walking around Waterloo it was like this guy was the mayor, everyone knew him. It was like, ‘Wow, this is how this part of the world works.’”Eventually, Cambr has its sights set on a bigger prize: It wants to handle deposits from the tech giants, not just the startups. Many industry watchers believe large tech companies will eventually move to offer more financial services, as Apple already has with the Apple Card and Amazon.com Inc. has with small business lending. But Siegel realizes that Cambr, the little-known product of the relatively little-known StoneCastle and Q2, faces some hurdles. “Do they want to take a risk on a younger platform?” he asks, and in doing so, “upset big finance, which they’ll still have to work with on some things?”Still, Siegel is pitching the titans of tech, as they continue to march deeper into the world of finance. He adds: “We've probably been out and visited with almost all of them.”(Updates with context on tech companies in the penultimate paragraph. An earlier version of this story corrected the location of Lincoln Savings Bank headquarters. )To contact the author of this story: Julie Verhage in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne VanderMey at email@example.com, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
CFO of Q2 Holdings Inc (30-Year Financial, Insider Trades) Jennifer Noel Harris (insider trades) sold 15,000 shares of QTWO on 09/10/2019 at an average price of $80.92 a share. Continue reading...
As more and more businesses go digital, cloud-based software providers stand to reap the benefits. A cloud refers to networks comprised of hyper-scale data centers built using open-source software and commodity hardware. With the demand for cloud-based solutions only growing, enterprises are turning to software companies to provide the digital infrastructure they need to keep pace with a world that’s increasingly online. But how are investors supposed to know which stocks are poised to soar beyond the clouds? One way to find these stocks is by using the TipRanks Stock Screener. The Stock Screener lets you sort stocks by sector and analyst consensus to pinpoint the most compelling investments. Using this tool, we were able to find 3 cloud-based software stocks that have garnered substantial support from Wall Street with a “Strong Buy” analyst consensus. This is based on the last three months’ worth of ratings from all other analysts. Let’s dive in. Salesforce.com, Inc. (CRM) As the pioneer behind customer relationship management (CRM) software, Salesforce has cemented its status as one of the leading players in the space. Based on its solid performance in its most recent quarter, investors are liking what they’re seeing. On August 22, the company posted a second quarter earnings and revenue beat driven by the strength of its Sales Cloud and Service Cloud. Sales cloud, the company’s largest product, generated $1.13 billion in revenue while the Service Cloud reached $1.09 billion, up 13% and 22%, respectively, from the year-ago quarter.That being said, CRM has been branching out as part of a larger effort to diversify its product offerings. Back in 2018, CRM acquired Mulesoft’s software business for $6.5 billion. The deal allowed CRM to offer solutions using data stored in disparate systems, some in the cloud and some in legacy on-premises software. This was followed up by an even larger acquisition of data visualization company Tableau. At $15.3 billion, the purchase was the company’s largest acquisition in its history. While some investors originally expressed concern that CRM was biting off more than it can chew with the acquisition, RBC Capital analyst Alex Zukin believes the current valuation of 5.5 times enterprise value to expected 2021 revenue represents a unique opportunity. “We see little meaningful competition and no evidence of pricing pressure or market saturation at Salesforce,” the five-star analyst explained. As a result, he assumed coverage with a Buy while raising the price target from $181 to $200 on August 23. He believes shares could surge 32% in the next twelve months.Wall Street clearly agrees as CRM has received 26 Buy ratings and no Holds or Sells in the last three months, giving it a ‘Strong Buy’ analyst consensus. Its $188 average price target indicates 24% upside potential. ServiceNow Inc. (NOW)While not as well-known as CRM, ServiceNow has been deemed a must-watch name in the workplace software space. Its cloud-based solutions get rid of paperwork by enabling its customers to digitize manual business processes that have typically needed to be performed on paper. With shares already up 48% year-to-date, it’s easy to see why analysts are excited about this cloud stock.Throughout the company’s history, it has been able to garner a positive reputation among customers based on its easy-to-use design. It doesn’t hurt that the software can be integrated with its customers’ existing software such as Amazon Web Services (AMZN), Microsoft Azure (MSFT), Google Cloud (GOOGL) as well as several others. According to NOW’s July 24 Q2 earnings release, customers are happy. The company boasts an almost 99% renewal rate, with it consistently marketing and cross-selling its other products to existing customers.Not to mention NOW was able to finalize 39 transactions each with more than $1 million in net new annual contract value (ACV) during the quarter. This brings its total customer base with an AVC over $1 million to 776, up 33% year-over-year. While the company has taken some heat over its lofty valuation, Stifel Nicolaus analyst Tom Roderick believes NOW looks poised to grow into its valuation. As a result, he upgraded the rating from a Hold to a Buy and bumped up the price target from $290 to $320 on August 21. The five-star analyst's new price target demonstrates his confidence in NOW’s potential to gain 21% over the next twelve months. All in all, the rest of the Street is bullish on NOW. It boasts a ‘Strong Buy’ analyst consensus and a $317 average price target, suggesting 20% upside potential. Q2 Holdings Inc. (QTWO)Q2 Holdings wants to change the way financial institutions operate by providing cloud-based digital banking solutions. The company is aiming to meet the needs of smaller banks that are seeing a drop in customer engagement at their physical locations. QTWO allows customers to build custom websites or mobile apps through its three platforms, a digital banking platform, lending and leasing and a banking-as-a-service. QTWO’s strategy appears to be working as evidenced by the results from its most recent quarter. On August 7, the company reported that its customer base gained 19% from the year-ago second quarter to reach 13.6 million users across all platforms. As a result, quarterly revenue totaled $77.6 million, up 33% year-over-year.“We closed out the first half of the year on a strong note. Given our sales execution, we plan to continue investing in integration, innovation and delivering successful client outcomes,” said CEO Matt Flake.Adding to the good news, QTWO announced on August 29 that it is partnering with Athena Home Loans to provide digital mortgages. Based on QTWO’s strong second quarter performance, KeyBanc analyst Arvind Ramnani reiterated his Buy rating while raising the price target from $98 to $102 on August 28. The four-star analyst believes that shares could soar 17% in the next twelve months.Wall Street appears to echo the analyst’s sentiment. The stock is a ‘Strong Buy’ among analysts, with it receiving 6 Buy ratings vs 2 Holds in the last three months. Its $94 average price target implies 7% upside potential. Find analysts’ favorite stocks with the Top Analysts’ Stocks tool