Dave (NASDAQ:DAVE) Share Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Dave Inc. shares surpassed their 200-day moving average during trading, reaching a high of $208.27, and currently trade at $198.01.
• The company initiated a $125 million share repurchase program, which may indicate that its leadership views the stock as undervalued.
• Analysts have mixed ratings on Dave's stock, with a consensus rating of "Moderate Buy" and a target price of $262.17, though some firms have lowered their ratings recently.

Dave Inc. (NASDAQ:DAVE - Get Free Report)'s share price passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $156.95 and traded as high as $208.27. Dave shares last traded at $198.01, with a volume of 361,018 shares trading hands.

Analyst Ratings Changes

Several brokerages have recently commented on DAVE. Piper Sandler reaffirmed a "neutral" rating on shares of Dave in a research note on Tuesday, June 10th. JMP Securities set a $280.00 price target on Dave and gave the company a "market outperform" rating in a research note on Thursday, August 7th. Citigroup reaffirmed an "outperform" rating on shares of Dave in a research note on Thursday, August 7th. Canaccord Genuity Group upped their price target on Dave from $179.00 to $229.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Finally, BMO Capital Markets reiterated an "outperform" rating on shares of Dave in a report on Tuesday, June 10th. Eight equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $262.17.

Dave Trading Down 2.1%

The company has a market cap of $2.88 billion, a PE ratio of 56.41 and a beta of 3.95. The company has a current ratio of 9.51, a quick ratio of 9.51 and a debt-to-equity ratio of 0.35. The company has a fifty day simple moving average of $219.53 and a two-hundred day simple moving average of $159.14.

Dave declared that its board has approved a share repurchase plan on Wednesday, August 13th that allows the company to repurchase $125.00 million in outstanding shares. This repurchase authorization allows the fintech company to reacquire up to 5.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In other news, CEO Jason Wilk sold 172,667 shares of the stock in a transaction dated 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 owned 225,411 shares in the company, valued at approximately $47,775,861.45. This represents a 43.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Yadin Rozov sold 5,500 shares of the stock in a transaction dated Wednesday, June 4th. The shares were sold at an average price of $206.94, for a total value of $1,138,170.00. Following the completion of the transaction, the director owned 95,678 shares in the company, valued at approximately $19,799,605.32. The trade was a 5.44% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 294,960 shares of company stock worth $62,575,325. Insiders own 28.48% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Cim LLC acquired a new stake in shares of Dave in the 2nd quarter valued at about $632,000. FORA Capital LLC acquired a new stake in shares of Dave in the 2nd quarter valued at about $1,758,000. WealthCollab LLC acquired a new stake in shares of Dave in the 2nd quarter valued at about $30,000. Tenzing Global Management LLC acquired a new stake in shares of Dave in the 2nd quarter valued at about $6,442,000. Finally, Shellback Capital LP acquired a new stake in shares of Dave in the 2nd quarter valued at about $14,855,000. 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.