Dave (NASDAQ:DAVE) Issues Quarterly Earnings Results

Dave (NASDAQ:DAVE) posted its quarterly earnings results on Tuesday. The fintech company reported $6.34 earnings per share for the quarter, beating the consensus estimate of $2.25 by $4.09, Zacks reports. The business had revenue of $150.80 million for the quarter, compared to the consensus estimate of $133.50 million. Dave had a return on equity of 33.02% and a net margin of 12.74%. Dave updated its FY 2025 guidance to EPS.

Dave Price Performance

Shares of DAVE stock traded down $14.17 during trading hours on Tuesday, reaching $225.95. The company had a trading volume of 693,388 shares, compared to its average volume of 487,076. The company has a market capitalization of $3.05 billion, a price-to-earnings ratio of 60.55 and a beta of 3.88. Dave has a 12-month low of $37.56 and a 12-month high of $286.45. The company has a debt-to-equity ratio of 0.35, a quick ratio of 9.51 and a current ratio of 9.51. The stock has a fifty day moving average of $217.97 and a 200-day moving average of $202.67.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Benchmark reiterated a “buy” rating and set a $320.00 price target on shares of Dave in a research note on Wednesday, October 1st. Zacks Research raised Dave from a “strong sell” rating to a “hold” rating in a report on Monday, October 20th. Weiss Ratings reissued a “hold (c+)” rating on shares of Dave in a report on Wednesday, October 8th. Wall Street Zen cut Dave from a “buy” rating to a “hold” rating in a report on Saturday, August 9th. Finally, Citizens Jmp boosted their price objective on Dave from $280.00 to $300.00 and gave the company a “mkt outperform” rating in a report on Friday, September 26th. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $274.13.

Insider Buying and Selling

In other news, Director Imran Khan sold 39,534 shares of the firm’s stock in a transaction on Monday, September 15th. The stock was sold at an average price of $223.13, for a total transaction of $8,821,221.42. Following the completion of the transaction, the director directly owned 79,110 shares in the company, valued at $17,651,814.30. This trade represents a 33.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Jason Wilk sold 81,693 shares of the stock in a transaction on Friday, September 19th. The shares were sold at an average price of $230.28, for a total value of $18,812,264.04. Following the completion of the sale, the chief executive officer owned 217,854 shares in the company, valued at approximately $50,167,419.12. The trade was a 27.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 226,943 shares of company stock worth $50,301,987. Company insiders own 28.48% of the company’s stock.

Institutional Trading of Dave

Several hedge funds have recently modified their holdings of DAVE. JPMorgan Chase & Co. raised its stake in shares of Dave by 0.7% in the second quarter. JPMorgan Chase & Co. now owns 8,986 shares of the fintech company’s stock valued at $2,412,000 after acquiring an additional 65 shares in the last quarter. Prudential Financial Inc. acquired a new stake in Dave in the second quarter valued at $324,000. Invesco Ltd. raised its stake in Dave by 2,379.9% in the second quarter. Invesco Ltd. now owns 97,485 shares of the fintech company’s stock valued at $26,166,000 after buying an additional 93,554 shares in the last quarter. First Trust Advisors LP acquired a new stake in Dave in the second quarter valued at $18,710,000. Finally, Cresset Asset Management LLC acquired a new stake in Dave in the second quarter valued at $402,000. 18.01% of the stock is currently owned by institutional investors and hedge funds.

Dave announced that its board has initiated a share repurchase plan on Wednesday, August 13th that authorizes the company to repurchase $125.00 million in shares. This repurchase authorization authorizes the fintech company to purchase up to 5.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

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.