Dave (NASDAQ:DAVE) to Repurchase $125.00 million in Shares

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) declared that its Board of Directors has initiated a share buyback plan on Wednesday, August 13th, RTT News reports. The company plans to repurchase $125.00 million in shares. This repurchase authorization allows the fintech company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

Dave Stock Performance

Shares of DAVE stock traded up $1.39 during trading hours on Monday, hitting $202.78. The stock had a trading volume of 192,637 shares, compared to its average volume of 516,695. The firm has a market capitalization of $2.74 billion, a PE ratio of 53.70 and a beta of 3.95. Dave has a twelve month low of $31.75 and a twelve month high of $286.45. The stock's 50 day moving average is $222.54 and its 200 day moving average is $152.93. The company has a debt-to-equity ratio of 0.35, a current ratio of 9.51 and a quick ratio of 9.51.

Wall Street Analyst Weigh In

A number of research firms have weighed in on DAVE. B. Riley raised their price objective on shares of Dave from $239.00 to $277.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. JMP Securities set a $280.00 price objective on shares of Dave and gave the stock a "market outperform" rating in a report on Thursday, August 7th. Wall Street Zen cut shares of Dave from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Benchmark reissued a "buy" rating and set a $320.00 price objective on shares of Dave in a report on Monday, July 14th. Finally, Piper Sandler reissued a "neutral" rating on shares of Dave in a report on Tuesday, June 10th. Two analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $262.17.

Insider Transactions at Dave

In other news, Director Michael W. Pope sold 1,793 shares of the stock in a transaction that occurred on Monday, June 23rd. The stock was sold at an average price of $209.82, for a total value of $376,207.26. Following the completion of the sale, the director directly owned 6,375 shares of the company's stock, valued at approximately $1,337,602.50. This represents a 21.95% 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 this hyperlink. Also, Director Yadin Rozov sold 5,500 shares of the stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $206.94, for a total value of $1,138,170.00. Following the completion of the sale, the director directly owned 95,678 shares of the company's stock, valued at $19,799,605.32. The trade was a 5.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 294,960 shares of company stock valued at $62,575,325 over the last ninety days. 28.48% of the stock is owned by insiders.

About Dave

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.