Investment Firm Sells SaaS Stock Worth $14.2 Million, According to Recent SEC Filing
Key Points
Pembroke Management, LTD sold 251,249 shares of Q2 Holdings; estimated transaction value is $14.16 million based on quarterly average price.
The quarter-end position value decreased by $20.41 million, reflecting both trading activity and stock price movement.
This transaction represents a 2.05% change relative to the fund’s 13F reportable assets under management.
After the sale, the fund holds 91,885 shares valued at $4.35 million.
The stake now accounts for 0.63% of AUM, which places it outside the fund’s top five holdings.
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Pembroke Management, LTD disclosed in a May 13, 2026, SEC filing that it sold 251,249 shares of Q2 Holdings (NYSE:QTWO), an estimated $14.16 million trade based on the quarterly average price.
What happened
According to a SEC filing dated May 13, 2026, Pembroke Management, LTD reduced its position in Q2 Holdings by 251,249 shares during the first quarter. The estimated value of these sales is $14.16 million, calculated using the average closing price for the quarter. The fund’s remaining stake was valued at $4.35 million as of March 31, 2026. The net position change for the quarter, including both the reduction in shares and price movement, was a decrease of $20.41 million.
What else to know
This was a reduction in holdings; Q2 Holdings now represents 0.63% of Pembroke Management, LTD’s 13F reportable AUM.
Top holdings after the filing:
- NASDAQ: MPWR: $37.61 million (5.4% of AUM)
- NYSE: REZI: $37.59 million (5.4% of AUM)
- NYSE: MOD: $35.95 million (5.2% of AUM)
- NASDAQ: AAON: $35.59 million (5.1% of AUM)
- NYSE: GMED: $35.20 million (5.1% of AUM)
As of May 13, 2026, shares of Q2 Holdings were priced at $44.70, down 51.8% over the past year and underperforming the S&P 500 by 78.26 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $821.58 million |
| Net income (TTM) | $73.89 million |
| Market capitalization | $2.80 billion |
| Price (as of market close May 13, 2026) | $44.70 |
Company snapshot
- Offers a suite of cloud-based digital banking solutions, including consumer and commercial banking platforms, security analytics, remote deposit capture, bill payment, and digital account opening tools.
- Serves regional and community financial institutions across the United States, targeting banks and credit unions seeking advanced digital banking capabilities.
- Operates a software-as-a-service (SaaS) business model, generating recurring revenue from its institutional client base.
Q2 Holdings is a technology provider specializing in digital banking solutions for regional and community financial institutions. By leveraging a comprehensive SaaS platform, clients can deliver secure, feature-rich digital experiences to their end users.
What this transaction means for investors
Pembroke Management, a Montreal-based investment firm, recently disclosed the sale of about 251,000 shares of Q2 Holdings, valued at approximately $14.2 million, during the first quarter (the three months ending on March 31, 2026). Here are some key takeaways for investors.
To begin, Q2 stock has endured a difficult period over the last 18 months. Shares are down about 35% over this period, significantly underperforming the S&P 500. The stock is now trading close to its 52-week low of $44.70. Bearish concerns regarding SaaS stocks in general appear to be behind the stock’s recent troubles.
As for fundamentals, they’re solid. Q2 is still generating robust growth, with quarterly revenue of around 14%. Granted, that is down significantly from three years ago, when the company’s revenue growth stood at nearly 25%, but double-digit revenue growth remains very desirable.
Similarly, the company’s profitability is on the upswing. Q2’s trailing 12-month net income has increased to nearly $74 million, up from $5 million one year ago.
In summary, growth-oriented investors who believe the sell-off in SaaS stocks is overdone may want to take a closer look at Q2.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aaon, Globus Medical, Modine Manufacturing, and Q2. The Motley Fool recommends Monolithic Power Systems. The Motley Fool has a disclosure policy.
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