Dave (NASDAQ:DAVE) Trading Down 7.6% – Should You Sell?

Dave Inc. (NASDAQ:DAVE) shares traded down 7.6% on Wednesday . The stock traded as low as $245.00 and last traded at $246.46. 159,230 shares were traded during trading, a decline of 72% from the average session volume of 577,375 shares. The stock had previously closed at $266.83.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Lake Street Capital reaffirmed a “buy” rating and set a $332.00 price target on shares of Dave in a research report on Wednesday, May 6th. Zacks Research upgraded Dave from a “hold” rating to a “strong-buy” rating in a research report on Monday, February 16th. UBS Group assumed coverage on Dave in a research report on Tuesday, May 26th. They set a “buy” rating and a $300.00 target price on the stock. B. Riley Financial raised their target price on Dave from $358.00 to $370.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Finally, Citizens Jmp raised their target price on Dave from $335.00 to $365.00 and gave the company a “market outperform” rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $323.40.

Dave Price Performance

The company has a current ratio of 3.86, a quick ratio of 3.86 and a debt-to-equity ratio of 0.95. The stock has a market capitalization of $3.15 billion, a price-to-earnings ratio of 15.93 and a beta of 3.87. The stock has a 50-day moving average price of $229.50 and a 200 day moving average price of $210.58.

Dave (NASDAQ:DAVE) last posted its earnings results on Tuesday, May 5th. The fintech company reported $3.64 EPS for the quarter, beating analysts’ consensus estimates of $2.86 by $0.78. Dave had a return on equity of 77.70% and a net margin of 37.22%.The firm had revenue of $158.41 million for the quarter, compared to analysts’ expectations of $153.67 million. Dave has set its FY 2026 guidance at 16.250-16.750 EPS. As a group, equities research analysts expect that Dave Inc. will post 14.7 earnings per share for the current year.

Dave declared that its Board of Directors has authorized a share buyback plan on Monday, March 2nd that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the fintech company to repurchase up to 11.2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of DAVE. Principal Financial Group Inc. lifted its stake in Dave by 22.7% in the 3rd quarter. Principal Financial Group Inc. now owns 67,792 shares of the fintech company’s stock worth $13,514,000 after purchasing an additional 12,555 shares in the last quarter. SG Americas Securities LLC lifted its stake in Dave by 2,267.1% in the 4th quarter. SG Americas Securities LLC now owns 88,552 shares of the fintech company’s stock worth $19,606,000 after purchasing an additional 84,811 shares in the last quarter. Hudson Bay Capital Management LP purchased a new position in Dave in the 3rd quarter worth approximately $1,826,000. Wilson Asset Management International PTY Ltd. purchased a new position in Dave in the 3rd quarter worth approximately $1,561,000. Finally, Pictet Asset Management Holding SA raised its position in shares of Dave by 372.2% during the 4th quarter. Pictet Asset Management Holding SA now owns 5,841 shares of the fintech company’s stock valued at $1,293,000 after buying an additional 4,604 shares during the period. 18.01% of the stock is owned by hedge funds and other institutional investors.

Dave Company Profile

Dave, Inc is a Los Angeles–based financial technology company founded in 2016 by Jason Wilk and John Wolanin. The company offers a subscription-based mobile app designed to help consumers avoid overdraft fees, manage their budgets and track expenses. Through its platform, members receive low-balance alerts, expense categorization and cash-advance capabilities tied to upcoming deposits.

At the core of Dave’s offering is fee-free overdraft protection: eligible users can request small, interest-free advances up to a preset limit, typically repaid on their next paycheck or deposit.