Stock Repurchase Program Initiated by Dave (NASDAQ:DAVE)

Key Points

• Dave (NASDAQ:DAVE) has initiated a $125 million stock repurchase program, allowing it to buy back up to 5.1% of its shares, a move reflecting confidence in its stock's value.
• DAVE stock experienced a 8.6% increase in trading, reaching $200.49 with 814,386 shares changing hands, compared to an average volume of 725,143.
• Recent analyst ratings show a consensus of "Moderate Buy" for DAVE, with B. Riley raising the price target to $277 while Benchmark set it at $320.

Dave (NASDAQ:DAVE - Get Free Report) announced that its board has authorized a stock repurchase plan on Wednesday, August 13th, RTT News reports. The company plans to repurchase $125.00 million in shares. This repurchase authorization authorizes the fintech company to buy up to 5.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Dave Stock Up 8.6%

DAVE stock traded up $15.85 during midday trading on Wednesday, reaching $200.49. 814,386 shares of the company's stock traded hands, compared to its average volume of 725,143. The company has a market cap of $2.67 billion, a price-to-earnings ratio of 53.04 and a beta of 3.95. The firm's fifty day moving average price is $223.10 and its 200-day moving average price is $151.40. 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 has a 52 week low of $31.75 and a 52 week high of $286.45.

Analyst Ratings Changes

Several analysts have recently weighed in on DAVE shares. B. Riley lifted their price objective on shares of Dave from $239.00 to $277.00 and gave the company a "buy" rating in a research note on Tuesday, July 29th. Wall Street Zen lowered shares of Dave from a "buy" rating to a "hold" rating in a research note on Saturday. Piper Sandler reiterated a "neutral" rating on shares of Dave in a research note on Tuesday, June 10th. Benchmark reiterated a "buy" rating and issued a $320.00 price objective on shares of Dave in a research note on Monday, July 14th. Finally, BMO Capital Markets reiterated an "outperform" rating on shares of Dave in a research note on Tuesday, June 10th. Two investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $262.17.

Insider Activity

In other Dave news, Director Imran Khan sold 80,965 shares of Dave stock in a transaction on Friday, June 13th. The shares were sold at an average price of $211.14, for a total transaction of $17,094,950.10. Following the transaction, the director directly owned 98,886 shares of the company's stock, valued at $20,878,790.04. The trade was a 45.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Michael W. Pope sold 15,000 shares of Dave stock in a transaction on Monday, June 16th. The stock was sold at an average price of $215.82, for a total transaction of $3,237,300.00. Following the transaction, the director directly owned 8,168 shares in the company, valued at $1,762,817.76. This represents a 64.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 294,960 shares of company stock valued at $62,575,325 over the last quarter. 28.48% of the stock is owned by insiders.

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.

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