Dave (NASDAQ:DAVE) Stock Rating Lowered by Benchmark

Key Points

• Benchmark downgraded Dave from “strong-buy” to “hold”, even though the broader analyst community remains constructive on the stock with a consensus rating of Moderate Buy.
• Dave recently reported better-than-expected quarterly results, posting EPS of $3.64 versus estimates of $2.86 and revenue of $158.41 million above expectations. The company also issued FY 2026 EPS guidance of 16.25 to 16.75.
• Despite the downgrade, Dave’s shares have been strong, opening at $298.52 and trading near their 52-week high of $318.66. The company also authorized a $300 million share repurchase program, while CEO Jason Wilk and Director Dan Preston recently sold shares.

Dave (NASDAQ:DAVE - Get Free Report) was downgraded by research analysts at Benchmark from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

A number of other analysts have also recently weighed in on DAVE. Zacks Research raised Dave from a "hold" rating to a "strong-buy" rating in a research report on Monday, February 16th. Weiss Ratings raised Dave from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, June 11th. B. Riley Financial boosted their price target on Dave from $358.00 to $370.00 and gave the stock a "buy" rating in a research report on Wednesday, May 27th. Canaccord Genuity Group boosted their price objective on Dave from $328.00 to $342.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Finally, Citizens Jmp boosted their price objective on Dave from $335.00 to $365.00 and gave the stock a "market outperform" rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $325.40.

Dave Price Performance

Shares of NASDAQ:DAVE opened at $298.52 on Tuesday. Dave has a fifty-two week low of $152.21 and a fifty-two week high of $318.66. The business has a 50-day moving average of $249.63 and a two-hundred day moving average of $216.17. The stock has a market capitalization of $3.79 billion, a P/E ratio of 19.20 and a beta of 3.87. The company has a debt-to-equity ratio of 0.95, a current ratio of 3.86 and a quick ratio of 3.86.

Dave (NASDAQ:DAVE - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The fintech company reported $3.64 earnings per share for the quarter, topping 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 company had revenue of $158.41 million during the quarter, compared to analysts' expectations of $153.67 million. Dave has set its FY 2026 guidance at 16.250-16.750 EPS. On average, equities research analysts predict that Dave will post 14.7 EPS for the current fiscal year.

Dave declared that its board has authorized a stock repurchase program on Monday, March 2nd that allows the company to buyback $300.00 million in shares. This buyback authorization allows the fintech company to reacquire up to 11.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

Insider Activity

In related news, CEO Jason Wilk sold 8,474 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $275.05, for a total transaction of $2,330,773.70. Following the completion of the transaction, the chief executive officer owned 299,950 shares of the company's stock, valued at approximately $82,501,247.50. The trade was a 2.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Dan Preston sold 275 shares of the business's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $247.65, for a total value of $68,103.75. Following the transaction, the director directly owned 5,466 shares of the company's stock, valued at $1,353,654.90. This represents a 4.79% decrease in their position. The disclosure for this sale is available in the SEC filing. 28.48% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dave

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. WealthCollab LLC bought a new position in Dave during the second quarter valued at about $30,000. National Bank of Canada FI bought a new position in Dave during the third quarter valued at about $30,000. Blue Trust Inc. increased its stake in Dave by 106.8% during the fourth quarter. Blue Trust Inc. now owns 153 shares of the fintech company's stock valued at $34,000 after acquiring an additional 79 shares during the period. Kestra Advisory Services LLC bought a new position in Dave during the fourth quarter valued at about $36,000. Finally, Westend Capital Management LLC increased its stake in Dave by 100.0% during the fourth quarter. Westend Capital Management LLC now owns 200 shares of the fintech company's stock valued at $44,000 after acquiring an additional 100 shares during the period. 18.01% of the stock is currently owned by institutional investors.

More Dave News

Here are the key news stories impacting Dave this week:

• Positive Sentiment: Zacks highlighted Dave Inc. (DAVE) as trading below its industry P/E average despite nearly 80% return on equity, strong margins, low debt, and rising member growth, suggesting the market may be underestimating earnings power. Article Title
• Positive Sentiment: DAVE was also named among “relative price strength winners,” with the article citing firmer market sentiment and positive earnings estimate revisions as tailwinds. Article Title
• Positive Sentiment: Another Zacks piece listed Dave Inc. (DAVE) among high-flying tech services stocks with double-digit year-to-date gains, reinforcing the stock’s momentum story. Article Title

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.

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