Dave (NASDAQ:DAVE) Shares Gap Down - Should You Sell?

Key Points

• Dave shares sold off sharply, falling from a prior close of $336.22 to $265.71 in Thursday trading, despite positive business updates.
• Third-quarter revenue rose 31% year over year to about $198 million, and adjusted EBITDA increased 39% to $82 million. Dave also raised its 2026 outlook, citing member growth and improving credit performance.
• Results were mixed against analyst expectations: revenue exceeded estimates, while EPS missed one cited forecast. Wall Street sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $433.25.

Dave Inc. (NASDAQ:DAVE - Get Free Report) shares gapped down before the market opened on Thursday. The stock had previously closed at $336.22, but opened at $295.66. Dave shares last traded at $265.7140, with a volume of 164,001 shares changing hands.

Key Stories Impacting Dave

Here are the key news stories impacting Dave this week:

• Positive Sentiment: Dave raised its 2026 revenue and profit outlook, citing member growth, improving credit performance and expansion of ExtraCash. Article: DAVE Q3 Earnings Call Highlights Higher Outlook and Credit Gains
• Positive Sentiment: Third-quarter revenue grew 31% year over year to about $198 million, while adjusted EBITDA rose 39% to $82 million. Record new-member acquisition and higher average revenue per user supported growth. Article: Dave Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Credit indicators improved: the 28-day delinquency rate declined to 2.09%, and Dave’s net monetization rate reached 5.2%, its highest level in five years. These trends may ease concerns about lending quality and support profitability. Article: Dave Reports Third Quarter 2026 Financial Results
• Negative Sentiment: The $4.39 per-share result missed the $4.45 Zacks estimate, a likely source of selling pressure despite revenue exceeding estimates and the raised outlook. Article: Dave Inc. Q3 Earnings Miss Estimates

Wall Street Analysts Forecast Growth

DAVE has been the subject of a number of research reports. Citigroup reissued an "outperform" rating on shares of Dave in a research note on Thursday, August 6th. Citizens Jmp upped their price target on shares of Dave from $450.00 to $475.00 and gave the company a "market outperform" rating in a research note on Thursday, August 6th. JPMorgan Chase & Co. assumed coverage on shares of Dave in a research report on Tuesday, September 15th. They set an "overweight" rating and a $480.00 price objective for the company. Seaport Research Partners reissued a "buy" rating and issued a $422.00 price objective on shares of Dave in a research note on Thursday, October 8th. Finally, Keefe, Bruyette & Woods lifted their price objective on shares of Dave from $485.00 to $490.00 and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Fourteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $433.25.

Dave Stock Performance

The company has a quick ratio of 4.22, a current ratio of 4.22 and a debt-to-equity ratio of 0.93. The business has a 50 day moving average price of $351.80 and a 200 day moving average price of $288.29. The stock has a market cap of $3.39 billion, a P/E ratio of 17.17 and a beta of 4.07.

Dave (NASDAQ:DAVE - Get Free Report) last issued its earnings results on Wednesday, November 4th. The fintech company reported $4.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.09 by $0.30. The firm had revenue of $197.70 million during the quarter, compared to analyst estimates of $191.89 million. Dave had a net margin of 34.58% and a return on equity of 77.46%. As a group, sell-side analysts expect that Dave Inc. will post 13.04 EPS for the current year.

Institutional Investors Weigh In On Dave

Several hedge funds have recently made changes to their positions in the company. Teachers Retirement System of The State of Kentucky lifted its position in shares of Dave by 92.3% during the first quarter. Teachers Retirement System of The State of Kentucky now owns 8,273 shares of the fintech company's stock valued at $1,440,000 after buying an additional 3,971 shares during the last quarter. RFG Advisory LLC bought a new stake in shares of Dave in the 2nd quarter valued at about $1,146,000. Tidal Investments LLC boosted its holdings in shares of Dave by 277.4% in the 2nd quarter. Tidal Investments LLC now owns 5,200 shares of the fintech company's stock valued at $1,937,000 after buying an additional 3,822 shares in the last quarter. Estuary Capital Management LP purchased a new position in shares of Dave in the 1st quarter worth approximately $20,556,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in shares of Dave in the 1st quarter worth approximately $1,835,000. 18.01% of the stock is currently owned by hedge funds and other institutional investors.

About Dave

Dave Inc is a financial technology company that operates a digital banking platform in the United States. The company's mobile app is designed to help members manage everyday finances, access funds between paychecks and build financial flexibility.

Its primary offerings include ExtraCash, an advance product intended to provide eligible members with access to a portion of their expected income, and Dave Spending, a debit account and associated payment card. Dave also provides budgeting tools, automated savings features through Dave Goals, and Side Hustle resources that help members identify potential ways to earn additional income.

Dave was founded in 2016 by Jason Wilk, who serves as chief executive officer.

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