Dave Inc. (NASDAQ:DAVE) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Dave Inc. has a consensus rating of "Moderate Buy" from nine brokerages, with a 12-month price target averaging $262.17.
• The company has authorized a $125 million share repurchase program, indicating that the board believes the shares are undervalued.
• Insider activity showed significant sales, with CEO Jason Wilk selling 172,667 shares recently, representing a 43.38% decrease in his position.

Dave Inc. (NASDAQ:DAVE - Get Free Report) has received a consensus rating of "Moderate Buy" from the nine brokerages that are covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $262.1667.

DAVE has been the subject of several analyst reports. Barrington Research restated an "outperform" rating and set a $290.00 price target on shares of Dave in a research note on Monday, August 4th. JMP Securities set a $280.00 price target on Dave and gave the company a "market outperform" rating in a research report on Thursday, August 7th. Benchmark restated a "buy" rating and issued a $320.00 price target on shares of Dave in a research report on Monday, July 14th. Canaccord Genuity Group lifted their price objective on Dave from $179.00 to $229.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Finally, BMO Capital Markets restated an "outperform" rating on shares of Dave in a report on Tuesday, June 10th.

Dave Price Performance

DAVE stock opened at $201.39 on Monday. The company has a market capitalization of $2.72 billion, a P/E ratio of 53.28 and a beta of 3.95. Dave has a twelve month low of $31.75 and a twelve month high of $286.45. The business has a 50 day simple moving average of $222.54 and a 200-day simple moving average of $152.93. The company has a current ratio of 9.51, a quick ratio of 9.51 and a debt-to-equity ratio of 0.35.

Dave announced that its board has initiated a share repurchase program on Wednesday, August 13th that authorizes the company to repurchase $125.00 million in shares. This repurchase authorization authorizes the fintech company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at Dave

In related news, CEO Jason Wilk sold 172,667 shares of the firm's stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $211.95, for a total value of $36,596,770.65. Following the transaction, the chief executive officer directly owned 225,411 shares of the company's stock, valued at approximately $47,775,861.45. This trade represents a 43.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Imran Khan sold 80,965 shares of the firm's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $211.14, for a total value of $17,094,950.10. Following the completion of the sale, the director directly owned 98,886 shares in the company, valued at $20,878,790.04. This trade represents a 45.02% decrease in their position. The disclosure for this sale can be found here. Insiders sold 294,960 shares of company stock valued at $62,575,325 over the last ninety days. 28.48% of the stock is owned by company insiders.

Institutional Trading of Dave

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DAVE. WealthCollab LLC acquired a new stake in Dave in the 2nd quarter valued at $30,000. Nisa Investment Advisors LLC raised its position in shares of Dave by 4,933.3% during the second quarter. Nisa Investment Advisors LLC now owns 151 shares of the fintech company's stock worth $41,000 after acquiring an additional 148 shares during the last quarter. KBC Group NV bought a new stake in shares of Dave during the second quarter worth $85,000. Catalyst Capital Advisors LLC bought a new stake in shares of Dave during the second quarter worth $141,000. Finally, Kingswood Wealth Advisors LLC bought a new stake in shares of Dave during the second quarter worth $208,000. Institutional investors and hedge funds own 18.01% of the company's stock.

About Dave

Dave, Inc is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health.

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