Dave (NASDAQ:DAVE) Trading Down 7.3% - Should You Sell?

Key Points

• Dave shares fell about 7.3% intraday to roughly $259 on Tuesday, a pullback attributed to short‑term profit‑taking and elevated volatility despite recent gains.
• The company delivered a strong Q1 beat (EPS $3.64 vs. $2.86 consensus; revenue $158.4M vs. $153.7M), raised FY‑2026 guidance to $16.25–$16.75 EPS and $710–$720M revenue, and completed ~ $195M of repurchases while authorizing up to $300M more.
• Analysts remain mostly constructive — consensus is a "Moderate Buy" with an average target near $320 — but the stock's high beta (~3.9) and valuation can amplify swings.

Dave Inc. (NASDAQ:DAVE - Get Free Report)'s stock price traded down 7.3% during mid-day trading on Tuesday . The stock traded as low as $259.69 and last traded at $258.9080. 253,893 shares were traded during trading, a decline of 55% from the average session volume of 567,906 shares. The stock had previously closed at $279.17.

Dave News Roundup

Here are the key news stories impacting Dave this week:

• Positive Sentiment: Q1 beat: Dave reported EPS of $3.64 versus consensus $2.86 and revenue of $158.4M vs. $153.7M; net margin (35.4%) and ROE (67.0%) were notably strong. This confirms better-than-expected profitability. Q1 Press Release PDF
• Positive Sentiment: Raised FY‑2026 guidance: Dave set EPS guidance of $16.25–$16.75 (consensus ~$14.42) and revenue guidance of $710–$720M (consensus ~$698.3M), signaling stronger forward profitability and top‑line growth. Q1 2026 Financial Results
• Positive Sentiment: Capital return: Dave deployed ~ $195M in share repurchases (~7% of shares outstanding), a meaningful buyback that reduces float and supports EPS. Q1 2026 Financial Results
• Positive Sentiment: Analyst support: Keefe, Bruyette & Woods raised its price target to $330 and kept an outperform rating; Barrington reaffirmed an outperform with a $290 target—both signal continued analyst confidence. Keefe Target Raise Barrington Reaffirmation
• Neutral Sentiment: Pre-earnings coverage and sector context: Several articles reviewed DAVE ahead of and after earnings, and sector comparisons may influence relative flows rather than company fundamentals. Yahoo Preview Zacks Sector Note
• Negative Sentiment: Market reaction/volatility: Despite the beat and stronger guidance, DAVE is down today on heavier-than-average volume — likely profit‑taking after a strong run, plus elevated volatility (beta ~3.9) and valuation considerations (current P/E ~19.5) that can amplify moves. Investors should view the drop as short‑term market reaction rather than a change in the company’s improving fundamentals.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Wall Street Zen downgraded shares of Dave from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. William Blair reissued an "accumulate" rating on shares of Dave in a research note on Friday, March 13th. Weiss Ratings reissued a "hold (c+)" rating on shares of Dave in a research note on Friday, April 24th. B. Riley Financial boosted their target price on shares of Dave from $297.00 to $303.00 and gave the company a "buy" rating in a research note on Tuesday, March 3rd. Finally, Citizens Jmp upped their price target on shares of Dave from $310.00 to $335.00 and gave the stock a "market outperform" rating in a research note on Friday, April 10th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $319.63.

Dave Stock Down 5.4%

The firm has a market capitalization of $3.58 billion, a price-to-earnings ratio of 19.56 and a beta of 3.93. The stock's 50 day moving average price is $211.02 and its two-hundred day moving average price is $208.40.

Dave (NASDAQ:DAVE - Get Free Report) last posted 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 net margin of 35.35% and a return on equity of 67.04%. The business had revenue of $158.40 million for the quarter, compared to the consensus estimate of $153.67 million. Dave has set its FY 2026 guidance at 16.250-16.750 EPS. On average, equities analysts expect that Dave Inc. will post 13.03 EPS for the current fiscal year.

Dave announced that its Board of Directors has initiated a share buyback program on Monday, March 2nd that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the fintech company to repurchase up to 11.2% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Dave

A number of large investors have recently bought and sold shares of the business. Sanctuary Advisors LLC boosted its holdings in Dave by 69.3% in the first quarter. Sanctuary Advisors LLC now owns 5,707 shares of the fintech company's stock worth $994,000 after purchasing an additional 2,336 shares in the last quarter. Teachers Retirement System of The State of Kentucky boosted its holdings in Dave by 92.3% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 8,273 shares of the fintech company's stock worth $1,440,000 after purchasing an additional 3,971 shares in the last quarter. Fifth Third Bancorp bought a new stake in Dave in the first quarter worth $786,000. Hsbc Holdings PLC boosted its holdings in Dave by 13.5% in the first quarter. Hsbc Holdings PLC now owns 2,864 shares of the fintech company's stock worth $498,000 after purchasing an additional 341 shares in the last quarter. Finally, Moran Wealth Management LLC boosted its holdings in Dave by 8.0% in the first quarter. Moran Wealth Management LLC now owns 4,859 shares of the fintech company's stock worth $846,000 after purchasing an additional 358 shares in the last quarter. 18.01% of the stock is currently owned by institutional investors.

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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