Top 5 Stock Picks of Jeffrey Diehl’s Adams Street Partners

4. Q2 Holdings, Inc. (NYSE:QTWO)

Adams Street Partners’ Stake Value: $47.937 million

Number of Hedge Fund Holders: 19

Q2 Holdings, Inc. (NYSE:QTWO) provides end-to-end banking services and has services for both the consumer as well as the commercial industry. Making up nearly 9% of the total portfolio, Q2 Holdings, Inc. (NYSE:QTWO) is one of the top 10 stock picks of Jeffrey Diehl’s Adams Street Partners.

Q2 Holdings, Inc. (NYSE:QTWO) has been in the news while piquing the interest of investors as it announced that it would be considering sale offers. However, Q2 Holdings, Inc. (NYSE:QTWO) decided to hold off for the moment as the bids that were coming in were lower than what the company had anticipated.

Artisan Partners published its Q3 2021 investor letter, where it mentioned Q2 Holdings, Inc. (NYSE:QTWO). Here is what it said:

“Among our bottom contributors was Q2 Holdings. Q2 Holdings is a leading provider of secure, cloud-based virtual banking solutions for smaller regional and community banks. Shares have been pressured alongside slowing in the company’s bookings backlog as it faces difficult year-over-year growth comparisons and recovers from an air pocket of bookings caused by delays in bank decision-making during the harshest of pandemic lockdowns. We expect these headwinds to abate over the near-to-intermediate term. We believe several areas of Q2’s business appear lowly penetrated— RCFI regional and community financial institutions—and given recent client wins, a reasonable valuation and an improving selling environment, we are remaining patient.”