Latest news with #ExtraCash
Yahoo
20 hours ago
- Business
- Yahoo
Dave Skyrockets 540% in a Year: Should You Buy the Stock Now?
Dave Inc. DAVE stock has shown outstanding growth over the past year. The stock has skyrocketed 540.5%, outperforming the industry's 51.6% rally and the Zacks S&P 500 composite's 12.3% growth. DAVE's performance is significantly higher than that of its industry peers, Katapult Holdings KPLT and MediaAlpha MAX. KPLT and MAX have declined 43.8% and 33.5% over the past year, respectively. Image Source: Zacks Investment Research Dave has also outperformed Katapult Holdings, MediaAlpha, and the industry as a whole in the past six months. DAVE shares have soared 152.6%, outperforming the industry's 3.1% rise. Katapult Holdings and MediaAlpha have gained 38.5% and 3.2% in the past six months, respectively. Image Source: Zacks Investment Research Dave shares have performed exceptionally well over the past year and the past six months. Investors must be flattered by this performance and are planning to initiate a buy. We have analyzed the stock and answered whether buying is the option or if investors should stay away from it. DAVE's CashAI is its proprietary underwriting engine, which has been proven to boost the company's financial performance, as evidenced by the first-quarter 2025 results. During this quarter, non-GAAP variable profit surged 67% year over year, with variable margin growing 950 basis points (bps). The credit goes to CashAI and its ability to improve Dave's cost management strategy, improving its profit margin. CashAI improved customer engagement, with ExtraCash originations increasing 46% year over year to $1.5 billion. Dave managed to approve higher ExtraCash amounts due to CashAI's ability to underwrite profitably despite it being a seasonally soft quarter. Furthermore, it enhanced the company's credit performance, evidenced by a 33-basis-point year-over-year improvement in the 28-day delinquency rate. CashAI leveraged insights and performance data to reduce the percentage of provisions for credit losses to origination from the 0.94% reported in the year-ago quarter down to 0.69%. With an expansion in the training data set, we expect CashAI to identify good risk and maximize approval rates, retaining its competitive edge. The underwriting engine's ability to precisely manage delinquency and loss rates while improving profitability puts Dave further than the existing fintech players that use traditional methods that are slower and less agile. Return on equity (ROE), a measure of profitability, reflects how effectively a company uses its shareholders' investments to generate earnings. Dave's trailing 12-month ROE is 59.2% compared with the industry's average of 6.6%. Image Source: Zacks Investment Research DAVE's current ratio in the first quarter of 2025 was 8.59, significantly higher than the industry average of 1.84. The metric has improved from the previous quarter and the year-ago quarter by 6.7% and 15%, respectively. The current ratio exceeds 1, which signals a positive outlook for investors by indicating the company's capacity to pay off short-term obligations efficiently. Image Source: Zacks Investment Research The Zacks Consensus Estimate for the company's 2025 revenues is pegged at $474.4 billion, suggesting a 36.7% increase from the year-ago reported level. For 2026, the top line is anticipated to rise 24.2% year over year. The consensus estimate for 2025 earnings is $8.74 per share, implying 66.8% growth from the year-ago reported level. For 2026, the bottom line is anticipated to rise 32.3% year over year. Over the past 60 days, two EPS estimates for both 2025 and 2026 have been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings has gained 31.4% and that for 2026 has soared 42.4%. These upward revisions highlight analysts' growing confidence in Dave's ability to improve its financial performance, fueled by its strong business model and robust growth potential. Image Source: Zacks Investment Research We understand Dave's CashAI, an AI-based underwriting engine, is improving its credit quality. In doing so, the company has enhanced its financial performance and finds itself competing with fintech giants. Banking on this technology, the company can easily dominate in a space where fintech players rely on traditional methods that are slower and less agile. Apart from this, DAVE's robust capital return and strong liquidity position raise the green flag for investors. In addition to that, the company is fundamentally strong and has upward EPS revisions, exuding growing confidence among analysts. Factors like these compel us to recommend a 'Buy' on DAVE stocks. Investors who are looking to dip their hands in the fintech space must add Dave to their portfolio now. DAVE sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE) : Free Stock Analysis Report MediaAlpha, Inc. (MAX) : Free Stock Analysis Report Katapult Holdings, Inc. (KPLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-05-2025
- Business
- Yahoo
Dave price target raised to $150 from $110 at Barrington
Barrington raised the firm's price target on Dave (DAVE) to $150 from $110 and keeps an Outperform rating on the shares. The company reported much better than expected Q1 results, the analyst tells investors in a research note. The firm says Dave's new fee structure is benefitting financial results in terms of greater ExtraCash generation, monetization, and member lifetime value. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on DAVE: Disclaimer & DisclosureReport an Issue Dave reports Q1 adjusted EPS $2.48, consensus $1.41 Dave sees FY25 revenue $460M-$475M, consensus $421.83M 3 Best Stocks to Buy Now, 4/18/2025, According to Top Analysts 3 Russell 2000 Small-Cap Stocks to Buy, According to Analysts 3 Best Stocks to Buy Now, 4/10/2025, According to Top Analysts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-03-2025
- Business
- Yahoo
Dave, Coastal Community Bank team up in pivot away from Evolve
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Neobank Dave has lined up Coastal Community Bank as a partner financial institution, and customer onboarding to that bank will begin as early as the second quarter, the companies said Monday. The Los Angeles-based fintech's partnership with Coastal Community Bank and CCBX, the lender's banking-as-a-service unit, will fuel Dave's business growth and expansion while offering competitive products in the market, the fintech said. 'This partnership marks a milestone moment for Dave,' Jason Wilk, the fintech's CEO and founder, said in a statement. 'Coastal Community Bank is the right partner for our company because of their customer-first mission, deep knowledge across credit and banking products, strong risk management, and our shared ambition to make a difference in the communities that need it most.' The partnership marks a pivot away from Evolve Bank & Trust. That bank has been the fintech's only bank partner for its ExtraCash and other deposit accounts, debit card services and other transaction services, Dave said Tuesday in its annual filing with the Securities and Exchange Commission. The fintech eventually plans to drop Evolve as its partner bank, Bloomberg reported. Dave underscored some risks when relying on one bank partner, including difficulties transitioning between bank partners that involve operational errors, data breaches and service disruptions; potential business differences with new partners and challenges operating with multiple bank partners during transitions. 'We currently rely on a single bank partner, and if our present or any future key banking relationships are terminated and we are not able to secure or successfully migrate client portfolios to a new bank partner or partners, or our bank partner becomes subject to regulatory restrictions or other operational disruptions, our business would be adversely affected,' Dave noted in the filing. The fintech also highlighted challenges Evolve has been grappling with for some time. The Federal Reserve issued an enforcement action against the lender last June, citing shortcomings in anti-money laundering, risk management and consumer compliance. The central bank alleged Evolve 'fail[ed] to have in place an effective risk management framework' for its fintech partnerships. Evolve was the partner bank of the bankrupt middleware firm Synapse. Though the Fed said Synapse's bankruptcy had nothing to do with the enforcement action issued against Evolve, Dave said Synapse's bankruptcy 'affected the ability of customers of financial technology companies that used Synapse as a service provider to access funds placed at Synapse's partner banks, including Evolve, for a number of months.' To add to Evolve's woes, the lender faced a data breach in which customer information was released to the dark web, two weeks after the Fed enforcement action. Dave, for its part, has had its share of challenges, as well. The Federal Trade Commission sued the fintech in November, alleging it misled consumers about its cash advance application. The FTC further alleged Dave charged consumers who needed financial assistance with undisclosed fees and 'tips' without their consent. Wilk said at the time that the lawsuit followed months of 'good-faith negotiations' and was 'another example of regulatory overreach by the FTC.' However, the FTC referred the case to the Justice Department, which filed an amended complaint against the firm and Wilk in December. Dave slammed the DOJ for its amended complaint and noted that it updated its mandatory fee structure to eliminate optional tips and express fees for the company's ExtraCash product. In its annual filing, the firm said its optimal fee revenue model, including tips and instant transfer fees for its ExtraCash product, was completed last month. The optional fee model was replaced with a 'simplified' 5% overdraft service fee structure including a minimum fee of $5 and a maximum of $15, starting with new customers in December 2024; existing customers were transitioned to that structure as of Feb. 19, according to the filing. Dave did not immediately respond to questions regarding its recent partnership. In November, Wilk hinted at diversifying Dave's key commercial relationships given the scale it's reached and the continued membership growth it's experienced. 'From our first discussions with their team, it was clear that we are aligned in bringing accessible, transparent financial services to traditionally underbanked populations,' Brian Hamilton, president of CCBX, said in a statement Monday. Recommended Reading Green Dot CHRO eyes 'engagement,' tech hires amid BaaS buildout Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
Dave Can Profit From Small-Balance Accounts, Analyst Sees Dave As A Breath Of Fresh Air For Average Banking Consumers
Canaccord Genuity analyst Joseph Vafi initiated coverage on Dave Inc (NASDAQ:DAVE) with a Buy rating and a price forecast of $120. The analyst said that Dave offers a refreshing alternative for consumers in search of a bank account and cited a 2023 FDIC survey, which revealed about 14-15% of Americans are considered underbanked. However, being underbanked doesn't necessarily correlate with low income. In fact, the same survey showed that over 34% of households earning more than $75K were still classified as underbanked, the analyst noted. According to the analyst, households avoid traditional banks due to high and punitive fees, leading them to rely on non-bank financial services. This group includes not just lower-income individuals, but also younger adults just beginning their financial journeys. Dave generates revenue from a wide range of consumer groups in ways that traditional banks cannot, because its business model doesn't rely on a conventional net interest margin (NIM) approach. Dave operates as a fully virtual banking platform built on a modern technology stack with a revenue model based on transaction fees rather than NIM. This allows Dave to profit from accounts with low balances while customers only pay for the services they use. Dave has been able to maintain consistently attractive customer acquisition costs thanks to an improved consumer banking experience, opined the analyst. The combination of low customer acquisition costs (CAC), along with double-digit growth in both members and ARPU, is driving solid financial metrics. The analyst notes Dave's fixed cost structure can support significantly higher revenue, suggesting further margin improvements in the future. In response to the CFTC's investigation of Dave's business practices and the consequent lawsuit, Dave has removed optional tipping and express fees for the Extra Cash product. Meanwhile, the analyst expects these adjustments not to hinder the company's current growth trajectory. The analyst notes Dave is tapping into a substantial, largely untapped market of underbanked consumers. The company's market strategy has evolved, its product offerings have been optimized, and the results are now evident in its P&L performance. The analyst expects that Dave's operational leverage could drive EBITDA margins higher, potentially providing a modest uplift to its valuation. Price Action: DAVE shares are trading higher by 3.35% at $100.19 at the last check Friday. Image via Shutterstock. Date Firm Action From To Apr 2019 Maxim Group Initiates Coverage On Buy Nov 2017 Craig-Hallum Upgrades Hold Buy Jun 2015 Dougherty & Co. Downgrades Buy Neutral View More Analyst Ratings for DAVE View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? DAVE (DAVE): Free Stock Analysis Report This article Dave Can Profit From Small-Balance Accounts, Analyst Sees Dave As A Breath Of Fresh Air For Average Banking Consumers originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
