Dave (NASDAQ:DAVE) Shares Down 7.9% - What's Next?

Key Points

• Dave Inc. (NASDAQ:DAVE) shares experienced a sharp decline of 7.9%, with trading volume falling by 79% compared to the average, indicating a significant bearish trend.
• Despite the current downturn, analysts maintain a consensus rating of "Moderate Buy" with an average price target of $262.17.
• The company has initiated a $125 million share buyback program, signaling potential confidence from its board that shares are undervalued.

Dave Inc. (NASDAQ:DAVE - Get Free Report)'s share price fell 7.9% on Tuesday . The stock traded as low as $189.50 and last traded at $186.25. 106,520 shares changed hands during trading, a decline of 79% from the average session volume of 515,991 shares. The stock had previously closed at $202.30.

Analysts Set New Price Targets

Several research firms have recently weighed in on DAVE. B. Riley raised their price objective on shares of Dave from $239.00 to $277.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Wall Street Zen cut shares of Dave from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Lake Street Capital lifted their target price on shares of Dave from $118.00 to $177.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Benchmark reiterated a "buy" rating and issued a $320.00 target price on shares of Dave in a research report on Monday, July 14th. Finally, Canaccord Genuity Group lifted their target price on shares of Dave from $179.00 to $229.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Eight research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $262.17.

Dave Price Performance

The business's 50-day simple moving average is $219.31 and its 200-day simple moving average is $155.90. The stock has a market cap of $2.69 billion, a PE ratio of 52.65 and a beta of 3.95. The company has a quick ratio of 9.51, a current ratio of 9.51 and a debt-to-equity ratio of 0.35.

Dave declared that its board has initiated a share repurchase plan on Wednesday, August 13th that permits the company to repurchase $125.00 million in outstanding shares. This repurchase authorization permits the fintech company to buy up to 5.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Insider Activity

In other Dave news, CEO Jason Wilk sold 172,667 shares of the business's stock in a transaction dated Friday, June 13th. The shares were 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. The trade was a 43.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Michael W. Pope sold 15,000 shares of Dave stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $215.82, for a total transaction of $3,237,300.00. Following the sale, the director directly owned 8,168 shares in the company, valued at $1,762,817.76. The trade was a 64.74% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 294,960 shares of company stock worth $62,575,325 over the last ninety days. 28.48% of the stock is owned by insiders.

Institutional Investors Weigh In On Dave

A number of large investors have recently modified their holdings of DAVE. WealthCollab LLC bought a new stake in shares of Dave during the 2nd quarter valued at about $30,000. Nisa Investment Advisors LLC boosted its stake in shares of Dave by 4,933.3% during the 2nd quarter. Nisa Investment Advisors LLC now owns 151 shares of the fintech company's stock valued at $41,000 after purchasing an additional 148 shares in the last quarter. KBC Group NV bought a new stake in shares of Dave during the 2nd quarter valued at about $85,000. Catalyst Capital Advisors LLC bought a new stake in shares of Dave during the 2nd quarter valued at about $141,000. Finally, Kingswood Wealth Advisors LLC bought a new stake in shares of Dave during the 2nd quarter valued at about $208,000. 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.