Dave (NASDAQ:DAVE) Stock Falls 9.1% – Should You Sell?

Shares of Dave Inc. (NASDAQ:DAVE) dropped 9.1% during mid-day trading on Monday. The stock traded as low as $320.89 and last traded at $322.4950. 239,374 shares changed hands during mid-day trading, a decline of 53% from the average session volume of 508,099 shares. The stock had previously closed at $354.60.

Key Headlines Impacting Dave

Here are the key news stories impacting Dave this week:

• Positive Sentiment: Earnings optimism: Zacks expects Dave to report earnings growth next week and says the company has factors that could support a beat, while recent earnings-estimate revisions have been favorable. Dave Inc. Reports Next Week: Wall Street Expects Earnings Growth
• Positive Sentiment: Strong momentum and analyst upside: Dave continues to receive favorable momentum-stock coverage, and the average Wall Street price target implies approximately 36.6% potential upside. However, price targets are not guarantees. Why Dave Is a Strong Momentum Stock Wall Street Analysts Think Dave Could Surge
• Positive Sentiment: Marketing and operating support: A bullish analysis argues that Dave’s advertising campaign could improve customer acquisition and market share. It also cites favorable operating cash flow and gross margins above 68%, despite recent quarterly declines. Dave: Catchy Ad Campaign Dampens Efforts to Thwart Stock
• Neutral Sentiment: Additional analyst attention: Monness Crespi & Hardt initiated coverage of Dave, potentially increasing institutional visibility, though the available report does not specify a rating or price target. Monness Crespi & Hardt Initiates Coverage on Dave
• Negative Sentiment: Valuation and short-interest risks: One analysis says DAVE looks expensive after its substantial three-year advance. Another cites short interest near 20%, which could increase volatility and create pressure if sentiment weakens. A separate report showing zero shares short conflicts with that estimate and may reflect stale or erroneous data. Dave Stock Looks Pricey Despite Its Huge Three Year Run

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. B. Riley Financial boosted their target price on shares of Dave from $370.00 to $449.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Loop Capital started coverage on Dave in a research note on Wednesday, September 9th. They issued a “buy” rating and a $500.00 price target on the stock. Lake Street Capital restated a “buy” rating and issued a $450.00 price target on shares of Dave in a research note on Thursday, August 6th. UBS Group reaffirmed a “buy” rating on shares of Dave in a report on Thursday, October 1st. Finally, Monness Crespi & Hardt assumed coverage on Dave in a research report on Monday. They set a “neutral” rating for the company. Fourteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $433.25.

Dave Stock Down 2.3%

The company’s 50-day simple moving average is $354.31 and its two-hundred day simple moving average is $284.96. The firm has a market capitalization of $4.09 billion, a P/E ratio of 20.79 and a beta of 3.92. The company has a debt-to-equity ratio of 0.93, a current ratio of 4.22 and a quick ratio of 4.22.

Dave (NASDAQ:DAVE) last issued its quarterly earnings data on Wednesday, August 5th. The fintech company reported $0.49 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.44 by ($2.95). The business had revenue of $170.79 million for the quarter, compared to the consensus estimate of $171.11 million. Dave had a net margin of 34.58% and a return on equity of 77.46%. Dave has set its FY 2026 guidance at 17.000-17.500 EPS. As a group, research analysts expect that Dave Inc. will post 13.04 earnings per share for the current year.

Institutional Trading of Dave

Several hedge funds have recently bought and sold shares of DAVE. Signaturefd LLC increased its position in Dave by 119.2% in the third quarter. Signaturefd LLC now owns 114 shares of the fintech company’s stock worth $37,000 after buying an additional 62 shares in the last quarter. Sterling Capital Management LLC lifted its position in shares of Dave by 841.7% during the 3rd quarter. Sterling Capital Management LLC now owns 339 shares of the fintech company’s stock valued at $109,000 after buying an additional 303 shares in the last quarter. SBI Securities Co. Ltd. lifted its position in shares of Dave by 1.5% during the 3rd quarter. SBI Securities Co. Ltd. now owns 1,812 shares of the fintech company’s stock valued at $583,000 after buying an additional 27 shares in the last quarter. Crossmark Global Holdings Inc. grew its stake in shares of Dave by 11.3% during the 3rd quarter. Crossmark Global Holdings Inc. now owns 669 shares of the fintech company’s stock valued at $215,000 after acquiring an additional 68 shares during the period. Finally, Nisa Investment Advisors LLC grew its stake in shares of Dave by 12.6% during the 3rd quarter. Nisa Investment Advisors LLC now owns 412 shares of the fintech company’s stock valued at $132,000 after acquiring an additional 46 shares during the period. Institutional investors own 18.01% of the company’s stock.

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.