Analysts Set Average Target Price of $312.13 for Dave Inc.

Dave Inc. (NASDAQ: DAVE) has received a consensus rating of “Moderate Buy” from analysts, according to Marketbeat Ratings. Thirteen research firms currently covering the fintech company have contributed to an average target price of approximately $312.13 for the stock. Among these analysts, two have issued a hold recommendation, while ten have assigned a buy rating and one has declared a strong buy.

Several notable research reports have been released recently. On March 2, 2024, Barrington Research reaffirmed an “outperform” rating with a price objective of $290.00. Earlier, on February 16, 2024, Zacks Research upgraded Dave from a “hold” to a “strong buy” status. B. Riley Financial also raised their target price for Dave from $297.00 to $303.00, maintaining a buy recommendation in a report published on March 3, 2024. Conversely, Wall Street Zen downgraded the stock from a buy to a hold rating over the weekend.

In another report, Keefe, Bruyette & Woods increased their price target from $250.00 to $295.00, also issuing an “outperform” rating on March 3, 2024. These varied ratings reflect a spectrum of confidence among analysts regarding Dave’s market performance.

Insider Transactions and Institutional Activity

Recent insider activity has garnered attention, particularly a transaction involving Director Imran Khan. On December 17, 2023, he sold 33,270 shares of Dave’s stock at an average price of $199.34, amounting to a total of $6,632,041.80. Following this sale, Khan retained 2,110 shares of the company, valued at approximately $420,607.40. This transaction represents a significant reduction of 94.04% in his ownership stake. The sale was disclosed in a filing with the Securities and Exchange Commission.

In the past three months, insiders have sold a total of 97,771 shares of Dave, valued at $19,194,391. Insiders currently hold 28.48% of the company’s stock. Notably, institutional investors have also been active, with hedge funds adjusting their stakes in the company. Divisadero Street Capital Management LP increased its position by 73.1% during the third quarter, now holding 925,266 shares worth around $184.45 million. Similarly, Ameriprise Financial Inc. raised its stake by an impressive 819.3%, acquiring 209,008 shares valued at approximately $41.67 million.

Voya Investment Management LLC reported a staggering increase of 5,603.0% in its holdings, now possessing 144,285 shares worth about $28.76 million. Other notable institutional investments include Neuberger Berman Group LLC and Jefferies Financial Group Inc., which recently initiated positions in the company valued at around $26.73 million and $27.87 million, respectively.

Current Stock Performance and Buyback Program

As of March 1, 2024, shares of Dave opened at $217.33. The company currently boasts a market capitalization of $2.93 billion, a price-to-earnings ratio of 16.10, and a beta of 3.86. Over the past year, the stock has experienced a low of $65.46 and a high of $286.45. The business’s 50-day moving average stands at $193.29, while the two-hundred-day moving average is $207.07.

On March 2, 2024, Dave announced the initiation of a share buyback program, allowing the company to repurchase up to $300 million in outstanding shares. This program permits the purchase of up to 11.2% of its stock through open market transactions. Such buyback initiatives often indicate that a company’s leadership believes its shares are undervalued, potentially signaling confidence in future performance.

Founded in 2016 in Los Angeles by Jason Wilk and John Wolanin, Dave Inc. specializes in financial technology. The company offers a subscription-based mobile application aimed at helping consumers avoid overdraft fees, manage budgets, and track expenses. Central to Dave’s services is its fee-free overdraft protection, allowing eligible users to request small, interest-free cash advances up to a preset limit, typically repaid on their next paycheck or deposit.