What Happened:
Shares of banking software provider Q2 (NYSE:QTWO) jumped 5.73% in the morning session after analyst Matt VanVliet of BTIG upgraded the stock's rating from Neutral (Hold) to Buy and maintained a price target of $36. After the initial pop the shares cooled down to $28.65, up 3.56% from previous close.
What is the market telling us:
Q2 Holdings's shares are very volatile and over the last year have had 37 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Q2 Holdings is up 5.39% since the beginning of the year, but at $28.65 per share it is still trading 47.8% below its 52-week high of $54.88 from June 2022. Investors who bought $1,000 worth of Q2 Holdings's shares 5 years ago would now be looking at an investment worth $501.22.
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