Dave Inc. has authorized a $50 million share repurchase program to enhance shareholder value and reflect financial confidence.
Quiver AI Summary
Dave Inc., a prominent neobank, has announced a share repurchase program authorized by its Board of Directors to buy back up to $50 million of its Class A common stock. This program, without a fixed expiration date, will be executed based on market conditions and strategic considerations, with repurchases anticipated to start soon. Chief Financial Officer Kyle Beilman expressed confidence in the company’s financial strength and growth potential, stating that share repurchases serve as a valuable tool for enhancing shareholder value. The company may utilize various methods for repurchasing, and management will determine the timing and amount of shares bought based on factors like stock price and business performance. The program is flexible, allowing for suspension or modification at the company’s discretion.
Potential Positives
- Authorization of a $50 million share repurchase program reflects the Board's confidence in Dave's financial strength and long-term growth potential.
- The program is seen as an effective capital allocation tool that could enhance shareholder value.
- The timing and execution of the program will strategically be based on market conditions and the company's optimism regarding cash generation.
- Dave's status as a leading neobank positions it well in the competitive financial technology landscape, appealing to investors looking for innovative banking solutions.
Potential Negatives
- The share repurchase program may be seen as a lack of immediate growth opportunities, suggesting the company is prioritizing short-term stock price support over long-term investment in business expansion.
- Significant risks are highlighted in the forward-looking statements section, including intense competition, dependence on a single bank partner, and compliance with evolving regulations, which could jeopardize future performance.
- The ongoing Department of Justice lawsuit against Dave raises legal and regulatory concerns that could negatively impact the company's reputation and operations.
FAQ
What is the purpose of Dave's share repurchase program?
The program aims to buy back up to $50 million of outstanding Class A common stock to enhance shareholder value.
How will the share repurchase be executed?
Shares may be repurchased through open market transactions or privately negotiated transactions, based on market conditions.
When is Dave expected to start repurchasing shares?
The company expects to begin repurchasing shares imminently, subject to market conditions and other factors.
What factors will impact the share repurchase program?
Factors include market conditions, stock price, business performance, and alternative investment opportunities.
Is there a fixed expiration date for the repurchase program?
No, the repurchase program does not have a fixed expiration date and can be modified or suspended at any time.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$DAVE Insider Trading Activity
$DAVE insiders have traded $DAVE stock on the open market 5 times in the past 6 months. Of those trades, 0 have been purchases and 5 have been sales.
Here’s a breakdown of recent trading of $DAVE stock by insiders over the last 6 months:
- 32 FUND 1, LP SECTION sold 1,000,000 shares for an estimated $40,600,000
- DAN PRESTON has made 0 purchases and 4 sales selling 28,760 shares for an estimated $2,520,313.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$DAVE Hedge Fund Activity
We have seen 91 institutional investors add shares of $DAVE stock to their portfolio, and 44 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- HOOD RIVER CAPITAL MANAGEMENT LLC added 879,931 shares (+466.0%) to their portfolio in Q4 2024, for an estimated $76,483,602
- INVESCO LTD. added 349,541 shares (+inf%) to their portfolio in Q4 2024, for an estimated $30,382,103
- PROEM ADVISORS LLC added 297,771 shares (+inf%) to their portfolio in Q4 2024, for an estimated $25,882,255
- UBS GROUP AG removed 235,947 shares (-70.4%) from their portfolio in Q4 2024, for an estimated $20,508,513
- COOPER CREEK PARTNERS MANAGEMENT LLC added 211,604 shares (+inf%) to their portfolio in Q4 2024, for an estimated $18,392,619
- DIVISADERO STREET CAPITAL MANAGEMENT, LP added 203,763 shares (+55.7%) to their portfolio in Q4 2024, for an estimated $17,711,079
- D. E. SHAW & CO., INC. added 167,432 shares (+141.4%) to their portfolio in Q4 2024, for an estimated $14,553,189
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Los Angeles, March 10, 2025 (GLOBE NEWSWIRE) -- Dave Inc. (“Dave” or the “Company”) (NASDAQ: DAVE), one of the nation’s leading neobanks, today announced that its Board of Directors has authorized a share repurchase program to buy back up to $50 million of its outstanding Class A common stock. The repurchase program does not have a fixed expiration date and may be executed from time to time based on market conditions, liquidity, and other strategic considerations. Subject to market conditions, the Company expects to begin repurchasing shares imminently.
Kyle Beilman, Dave’s Chief Financial Officer, commented: "Our Board’s approval of this share repurchase program reflects our confidence in Dave’s financial strength, long-term growth potential, and ability to generate free cash flow. We believe share repurchases are an effective capital allocation tool, providing a compelling opportunity to enhance shareholder value. Given our current valuation, liquidity position, and optimistic outlook for cash generation, we believe this is an opportune time to implement this program.”
Under the authorization, the Company may repurchase shares through a variety of methods, including open market transactions and privately negotiated transactions, in compliance with Rule 10b-18 of the Securities Exchange Act of 1934 and other applicable laws and regulations. The timing, manner, and total amount of repurchases will be determined by management based on market conditions, stock price, business performance, and alternative investment opportunities.
The repurchase program does not obligate Dave to acquire any specific number of shares, and it may be suspended, modified, or terminated at any time at the Company’s discretion.
About Dave
Dave (Nasdaq: DAVE) is a leading U.S. neobank and fintech pioneer serving millions of everyday Americans. Dave uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents. For more information about the company, visit:
www.dave.com
. For investor information and updates, visit:
investors.dave.com
and follow @
davebanking
on X.
Forward-Looking Statements
This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feels,” “believes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “remains,” “should,” “is to be,” or the negative of such terms, or other comparable terminology and include, among other things, the expected impact and timing of share repurchases, quotations of our Chief Financial Officer relating to Dave’s future performance, growth and free cash flow, and other statements about future events. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: the ability of Dave to compete in its highly competitive industry; the ability of Dave to keep pace with the rapid technological developments in its industry and the larger financial services industry; the ability of Dave to manage risks associated with providing ExtraCash; the ability of Dave to retain its current Members, acquire new Members and sell additional functionality and services to its Members; the ability of Dave to protect intellectual property and trade secrets; the ability of Dave to maintain the integrity of its confidential information and information systems or comply with applicable privacy and data security requirements and regulations; the reliance by Dave on a single bank partner; the ability of Dave to maintain or secure current and future key banking relationships and other third-party service providers, including its ability to comply with applicable requirements of such third parties; the ability of Dave to comply with extensive and evolving laws and regulations applicable to its business; changes in applicable laws or regulations and extensive and evolving government regulations that impact operations and business; the ability to attract or maintain a qualified workforce; the level of product service failures that could lead Members to use competitors’ services; investigations, claims, disputes, enforcement actions, litigation and/or other regulatory or legal proceedings, including the Department of Justice’s lawsuit against Dave; the ability to maintain the listing of Dave Class A Common Stock on The Nasdaq Stock Market; the possibility that Dave may be adversely affected by other economic factors, including fluctuating interest rates, and business, and/or competitive factors; and other risks and uncertainties discussed in Dave’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2025 and subsequent Quarterly Reports on Form 10-Q under the heading “Risk Factors,” filed with the SEC and other reports and documents Dave files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Dave undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Attachment
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
