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

Dave Inc. (NASDAQ:DAVE) has received a consensus rating of “Moderate Buy” from thirteen research firms currently covering the company, according to Marketbeat Ratings. Analysts have assigned two hold recommendations, ten buy recommendations, and one strong buy recommendation. The average 12-month target price set by analysts is $312.13, reflecting positive sentiment regarding the fintech firm’s prospects.

Several research reports have highlighted Dave’s performance in recent weeks. On March 2, Barrington Research reaffirmed an “outperform” rating with a price target of $290.00. Zacks Research elevated their rating from “hold” to “strong buy” on February 16. B. Riley Financial increased their target from $297.00 to $303.00 while maintaining a “buy” rating in a report released on March 3. In contrast, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating over the weekend. Additionally, on March 3, Keefe, Bruyette & Woods raised their price target from $250.00 to $295.00, also providing an “outperform” rating.

In insider activity, Director Imran Khan sold 33,270 shares of Dave on December 17, 2023. The shares were sold at an average price of $199.34, totaling approximately $6.63 million. Following this transaction, Khan retained 2,110 shares valued at around $420,607.40, marking a significant decrease of 94.04% in ownership. The sale was disclosed in a filing with the Securities and Exchange Commission, accessible through the SEC website. Over the past three months, insiders have sold a total of 97,771 shares worth approximately $19.19 million, with insiders currently owning 28.48% of the company’s stock.

Institutional Investment Trends

Recent trends indicate active participation from institutional investors in Dave Inc. Hedge funds and other institutional entities have made notable adjustments to their positions. For instance, Divisadero Street Capital Management LP increased its stake by 73.1% during the third quarter, now holding 925,266 shares valued at $184.45 million after acquiring an additional 390,676 shares. Ameriprise Financial Inc. expanded its position by an astonishing 819.3%, owning 209,008 shares worth $41.67 million after purchasing 186,273 shares.

Moreover, Voya Investment Management LLC reported an increase of 5,603.0%, now owning 144,285 shares valued at approximately $28.76 million after buying 141,755 shares. New positions were also established by Neuberger Berman Group LLC and Jefferies Financial Group Inc., valued at about $26.73 million and $27.87 million, respectively. Currently, institutional investors hold 18.01% of the stock.

Shares of Dave opened at $217.33 on Friday, reflecting a slight decline of 0.4%. The company 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, Dave’s stock has experienced a 52-week low of $65.46 and a high of $286.45. The firm’s 50-day moving average stands at $193.29, while the 200-day moving average is $207.07.

On March 2, Dave announced the initiation of a share buyback program, allowing for the repurchase of up to $300.00 million in outstanding shares. This program permits the company to buy back approximately 11.2% of its stock through open market purchases, often indicating that company leadership believes its shares are undervalued.

About Dave Inc.

Founded in 2016, Dave Inc. is a financial technology company based in Los Angeles. The firm, established by Jason Wilk and John Wolanin, offers a subscription-based mobile application designed to assist consumers in avoiding overdraft fees, managing budgets, and tracking expenses. Key features of the app include low-balance alerts, expense categorization, and cash-advance capabilities linked to upcoming deposits. At the core of Dave’s services is fee-free overdraft protection, allowing eligible users to request small, interest-free advances up to a preset limit, typically repaid on their next paycheck or deposit.

As the fintech landscape continues to evolve, Dave Inc. remains focused on providing innovative solutions for financial management, aiming to enhance consumer experiences in an increasingly digital financial environment.