Dave (NASDAQ:DAVE) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Dave (NASDAQ:DAVE) has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating.
• The company's board has initiated a stock repurchase plan authorizing up to $125 million in share buybacks, which typically suggests management believes the shares are undervalued.
• Insider transactions revealed significant sales by CEO Jason Wilk and Director Imran Khan, collectively totaling over $20 million in stock sold recently.

Dave (NASDAQ:DAVE - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,Zacks.com reports.

DAVE has been the topic of several other research reports. JPMorgan Chase & Co. set a $300.00 price target on shares of Dave in a report on Friday, September 26th. Wall Street Zen cut shares of Dave from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. BMO Capital Markets reaffirmed an "outperform" rating on shares of Dave in a research note on Tuesday, June 10th. Barrington Research reaffirmed an "outperform" rating and set a $290.00 price objective on shares of Dave in a research note on Monday, August 18th. Finally, Benchmark reaffirmed a "buy" rating and set a $320.00 price objective on shares of Dave in a research note on Wednesday, October 1st. Eight research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $274.13.

Dave Stock Performance

DAVE opened at $202.88 on Monday. Dave has a 52-week low of $37.44 and a 52-week high of $286.45. The company has a quick ratio of 9.51, a current ratio of 9.51 and a debt-to-equity ratio of 0.35. The company has a market cap of $2.74 billion, a P/E ratio of 53.67 and a beta of 3.88. The firm's 50-day moving average price is $210.58 and its 200-day moving average price is $181.80.

Dave announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, August 13th that authorizes the company to repurchase $125.00 million in outstanding shares. This repurchase authorization authorizes the fintech company to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its shares are undervalued.

Insider Transactions at Dave

In other Dave news, CEO Jason Wilk sold 81,693 shares of the business's stock in a transaction on Friday, September 19th. The shares were sold at an average price of $230.28, for a total value of $18,812,264.04. Following the completion of the transaction, the chief executive officer owned 217,854 shares in the company, valued at $50,167,419.12. The trade was a 27.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Imran Khan sold 8,535 shares of the business's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $217.70, for a total value of $1,858,069.50. Following the transaction, the director directly owned 48,885 shares of the company's stock, valued at approximately $10,642,264.50. This represents a 14.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 226,943 shares of company stock valued at $50,301,987. 28.48% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dave

Several large investors have recently modified their holdings of the stock. Team Financial Group LLC purchased a new stake in shares of Dave during the third quarter worth approximately $54,000. Osaic Holdings Inc. raised its stake in shares of Dave by 4,341.4% during the second quarter. Osaic Holdings Inc. now owns 13,724 shares of the fintech company's stock worth $3,683,000 after purchasing an additional 13,415 shares during the last quarter. Cim LLC purchased a new stake in shares of Dave during the second quarter worth approximately $632,000. FORA Capital LLC purchased a new stake in shares of Dave during the second quarter worth approximately $1,758,000. Finally, WealthCollab LLC purchased a new stake in shares of Dave during the second quarter worth approximately $30,000. Hedge funds and other institutional investors own 18.01% of the company's stock.

Dave Company Profile

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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