Dave Inc. (NASDAQ:DAVE) Sees Large Increase in Short Interest

Dave Inc. (NASDAQ:DAVE) was the recipient of a significant growth in short interest during the month of December. As of December 31st, there was short interest totaling 1,104,579 shares, a growth of 26.7% from the December 15th total of 871,992 shares. Based on an average daily volume of 382,743 shares, the short-interest ratio is presently 2.9 days. Approximately 11.4% of the company’s shares are short sold. Approximately 11.4% of the company’s shares are short sold. Based on an average daily volume of 382,743 shares, the short-interest ratio is presently 2.9 days.

Dave Stock Up 1.0%

DAVE stock traded up $1.95 during trading on Friday, reaching $194.01. The stock had a trading volume of 659,377 shares, compared to its average volume of 416,124. The company has a current ratio of 8.69, a quick ratio of 8.69 and a debt-to-equity ratio of 0.26. The firm has a fifty day moving average price of $212.09 and a 200 day moving average price of $215.93. The company has a market capitalization of $2.62 billion, a P/E ratio of 19.23 and a beta of 3.90. Dave has a 1-year low of $65.46 and a 1-year high of $286.45.

Dave (NASDAQ:DAVE) last announced its earnings results on Tuesday, November 4th. The fintech company reported $4.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.29 by $1.95. The business had revenue of $150.73 million for the quarter, compared to analyst estimates of $153.09 million. Dave had a return on equity of 65.86% and a net margin of 29.85%. On average, equities analysts anticipate that Dave will post 1.07 earnings per share for the current year.

Dave News Roundup

Here are the key news stories impacting Dave this week:

• Positive Sentiment: Brokerage consensus rating of “Buy” — Multiple brokerages give DAVE a consensus Buy, which can support investor demand and help justify the stock’s strength. Read More.
• Positive Sentiment: Recent quarterly results remain supportive — Dave reported a sizable EPS beat (reported $4.24 vs. $2.29 est.), strong margins and ROE, which underpin current valuation and investor confidence despite revenue roughly in line with estimates. Read More.
• Neutral Sentiment: Technical/volume-driven move flagged by Zacks — Zacks notes DAVE saw a jump on above-average volume recently, but their review of earnings-estimate revisions doesn’t suggest clear additional upside from analysts, implying the move may be momentum-driven rather than fundamentals-driven. Read More.
• Neutral Sentiment: Obituaries about “Dave’s Markets”/Burt Saltzman — Multiple outlets report the death of the patriarch of Dave’s Markets/Lucky’s Market. This concerns a regional grocery operator and not Dave Inc. (the fintech). Expect possible name-related headline noise but no operational impact on DAVE. Read More. | Read More.
• Neutral Sentiment: Other “Dave”-related consumer/personal-finance stories — Items about Dave Ramsey and unrelated cultural stories (e.g., Dave Mustaine) appear in the feed but have no bearing on Dave Inc.’s business or outlook. Read More.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Canaccord Genuity Group increased their target price on shares of Dave from $229.00 to $274.00 and gave the stock a “buy” rating in a research report on Wednesday, November 5th. Weiss Ratings raised shares of Dave from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, January 12th. Lake Street Capital restated a “buy” rating on shares of Dave in a report on Wednesday, December 24th. B. Riley reiterated a “buy” rating and issued a $297.00 price target (up from $277.00) on shares of Dave in a report on Wednesday, November 5th. Finally, Zacks Research upgraded Dave from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, November 18th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $304.25.

Insider Buying and Selling

In related news, Director Imran Khan sold 33,270 shares of Dave stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $199.34, for a total value of $6,632,041.80. Following the transaction, the director owned 2,110 shares in the company, valued at approximately $420,607.40. This trade represents a 94.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jason Wilk sold 7,393 shares of the business’s stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $203.77, for a total value of $1,506,471.61. Following the sale, the chief executive officer directly owned 210,461 shares of the company’s stock, valued at approximately $42,885,637.97. This trade represents a 3.39% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 105,164 shares of company stock worth $20,700,863. 28.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Divisadero Street Capital Management LP lifted its stake in Dave by 73.1% during the third quarter. Divisadero Street Capital Management LP now owns 925,266 shares of the fintech company’s stock worth $184,452,000 after purchasing an additional 390,676 shares during the last quarter. Vanguard Group Inc. grew its position in shares of Dave by 10.0% during the 3rd quarter. Vanguard Group Inc. now owns 655,293 shares of the fintech company’s stock valued at $130,633,000 after buying an additional 59,774 shares during the last quarter. American Century Companies Inc. raised its stake in Dave by 17.1% during the third quarter. American Century Companies Inc. now owns 229,693 shares of the fintech company’s stock worth $45,790,000 after acquiring an additional 33,492 shares during the period. Ameriprise Financial Inc. raised its stake in Dave by 819.3% during the third quarter. Ameriprise Financial Inc. now owns 209,008 shares of the fintech company’s stock worth $41,666,000 after acquiring an additional 186,273 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in Dave by 14.6% in the second quarter. Geode Capital Management LLC now owns 207,773 shares of the fintech company’s stock worth $55,774,000 after acquiring an additional 26,515 shares during the last quarter. 18.01% of the stock is owned by institutional investors and hedge funds.

Dave Company Profile

Dave, Inc is a Los Angeles–based financial technology company founded in 2016 by Jason Wilk and John Wolanin. The company offers a subscription-based mobile app designed to help consumers avoid overdraft fees, manage their budgets and track expenses. Through its platform, members receive low-balance alerts, expense categorization and cash-advance capabilities tied to upcoming deposits.

At the core of Dave’s offering is fee-free overdraft protection: eligible users can request small, interest-free advances up to a preset limit, typically repaid on their next paycheck or deposit.