|Bid||76.11 x 900|
|Ask||76.19 x 1000|
|Day's Range||75.79 - 76.58|
|52 Week Range||43.41 - 93.63|
|Beta (3Y Monthly)||1.24|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 4, 2019 - Nov 8, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||92.27|
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.
Q2 Holdings, Inc. , a leading provider of digital transformation solutions for banking and lending, today announced its partnership with Socure to deliver best-in-class digital identity verification and fraud protection capabilities through Q2 Open’s CorePro, an agile, cloud-based core processor and system of record.
(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 email@example.comTo contact the editor responsible for this story: Anne VanderMey at firstname.lastname@example.org, 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
EVP, Customer Experience of Q2 Holdings Inc (30-Year Financial, Insider Trades) Odus Edward Wittenburg Jr (insider trades) sold 21,250 shares of QTWO on 08/23/2019 at an average price of $90.1 a share. Continue reading...
Social media sentiment provides valuable insights for investors. Indeed, hedge funds and asset managers have long used “sentiment analysis” to trade on consumer feelings toward a company or asset. These computer-driven readings of the social media mood can analyze huge numbers of posts while sifting out unreliable information.Here we take a closer look at three top tech stocks which all show Very Positive social media sentiment right now. And as we will see analysts also share this optimistic take on these three names. All three stock picks show a ‘Strong Buy’ Street consensus, based on all the ratings published on each stock over the last three months. Let’s take a closer look at what’s driving this sentiment now: Salesforce (CRM)Salesforce is buzzing on social media right now. We can see that sentiment over the last 7 days is extremely positive compared to the sector average. That’s not surprising given the company’s deal making bonanza. On August 1 CRM completed its massive $15.7 billion Tableau acquisition. And now the company has surprised investors by revealing that it has also snapped up field service software company ClickSoftware for a cool $1.35 billion. “Our acquisition of ClickSoftware will not only accelerate the growth of Service Cloud, but drive further innovation with Field Service Lightning to better meet the needs of our customers,” explained EVP Bill Patterson in a statement. Indeed, the company’s fast-growing Service Cloud segment has just crossed the $1 billion revenue mark- and now with ClickSoftware on board, CRM is hoping to keep these numbers rising. Meanwhile Tableau will bring to CRM an intuitive platform that enables customers to bring data to life by visualizing it- even if they don’t have specific data skills. Bear in mind, it’s not so long ago that CRM also splashed out billions of dollars on MuleSoft to get at backend data sources.It’s not just the social sentiment that’s bullish on CRM and its acquisition strategy. The Street also has a very positive outlook on the stock right now, with a Strong Buy analyst consensus. In the last three months, 23 out of 24 analysts have rated Salesforce a buy. That’s with an average price target of $183 (27% upside potential). “We would note the market for field service management software is estimated to be approximately $3.5bn in CY19, growing at ~17%” cheers five-star Evercore ISI analyst Kirk Materne. He notes Salesforce will provide updated guidance during its upcoming earnings call (August 22nd). “In the near-term, investors will likely need to remain patient as the full weight of the Tableau, and ClickSoftware transactions are fully integrated into our/Street estimates. As we have stated in the past when it comes to Salesforce’s M&A history, deal-related pullbacks have generally represented good entry points, and while the deal will create some ‘noise in the numbers,’ the long-term risk/reward remains favorable” he concludes. LivePerson (LPSN)LivePerson is all about using technology to help businesses communicate with customers. It has created an AI-powered conversational platform to enable consumers to buy products and get answers to questions via everything from WhatsApp to Facebook Messenger. Year-to-date the stock has put on a tremendous performance- more than doubling since the start of the year thanks to consistently strong revenue growth. And social media reflects this with many investors singing the stock’s praises. Luckily the Street believes LivePerson has what it takes for continued growth. In the last three months LPSN has received no less than 10 consecutive buy ratings. So no hold or sell ratings here. “Raising target to $37 from $33 as LPSN posted nine 7-figure deals in 2Q, and increased deal count 50%” enthused Northland Securities’ analyst Michael Latimore following the company’s stellar earnings report. Highlights included expanding pipelines, healthy big deal momentum and overall deal volume. As a result, Latimore writes “Pipeline and demand is clearly there, and LPSN is accelerating investments to capture it. Demand is for more channels, use cases and AI/automation; and for sales in addition to customer service.” Similarly Oppenheimer’s Koji Ikeda boosted his price target from $35 to $41 citing the company’s higher growth guidance for 2019. “We believe management's reputation as good operators is increasing, and the business is positioned to continue the accelerating growth trend, which should help catalyze a rerating of LPSN's multiple higher to coincide with the improving growth profile” enthused Ikeda. Q2 Holdings Inc (QTWO)Texas-based Q2 Holdings is a leading provider of secure, cloud-based virtual banking solutions. After the close on August 7, QTWO released a 2Q19 report featuring top- and bottom-line beats while boosting its FY19 revenue forecast. What’s more, QTWO also revealed that during 2Q19 it signed three Tier 1 banks (including a $26bn bank holding company), as well as digital lending contracts with two current clients. The news sparked a wave of positive social media sentiment for the stock, which is now trading up 75% year-to-date. Following earnings, SunTrust Robinson analyst Terry Tillman reiterated his bullish call on QTWO. Most tellingly, he also ramped up his price target from $84 to $100 (15% upside potential) citing ‘strong execution.’ Encouragingly, this Top 10 analyst has a very strong track record with his QTWO recommendations (86% success rate and 28% average return per rating).Meanwhile RBC Capital’s Matthew Hedberg also significantly boosted his price target on the stock from $79 to $94. “We believe the company is in the early innings of penetrating a multi-billion-dollar market that includes fragmented competition” explained the analyst.“Through an acquire-retain-and-expand strategy, we believe Q2 has the opportunity to generate strong financial growth for several years while continuing to innovate new technologies that leverage its core platform.” In addition, he also sees the company as an attractive acquisition target for larger vendors seeking exposure to innovative solutions.Overall this ‘Strong Buy’ stock has racked up 5 buy ratings in the last three months vs just 1 hold rating. The average analyst price target currently works out at $91. Discover the Street's best-rated Trending Stocks right now
Bellevue, WA, based Investment company Steelhead Partners LLC (Current Portfolio) buys Advanced Micro Devices Inc, Q2 Holdings Inc during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Steelhead Partners LLC. Continue reading...
Q2 Holdings (QTWO) delivered earnings and revenue surprises of 200.00% and 2.07%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
President and CEO of Q2 Holdings Inc (30-Year Financial, Insider Trades) Matthew P Flake (insider trades) sold 25,000 shares of QTWO on 07/31/2019 at an average price of $80.52 a share. Continue reading...
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.