Dan Preston, a director at Dave Inc. (NASDAQ:DAVE), recently sold a substantial number of shares of the company's Class A Common Stock, according to a filing with the Securities and Exchange Commission. On November 12 and 13, Preston sold a total of 12,125 shares at prices ranging from $64.00 to $79.09 per share, amounting to a total transaction value of approximately $923,353. These transactions were executed under a Rule 10b5-1 trading plan, which Preston adopted on September 5, 2023.
In addition to the sales, Preston also exercised stock options on the same dates, acquiring 12,125 shares at an exercise price of $0.944 per share, for a total value of $11,446. After these transactions, Preston holds 22,995 shares directly.
In other recent news, Dave Inc. has unveiled plans for a strategic partnership with a leading sponsor bank, aiming to broaden its financial services for its members. This partnership is set to bolster Dave's ExtraCash product, manage member deposit accounts, and foster the creation of new banking and credit products. The company will continue its current relationship with Evolve Bank & Trust alongside this new partnership.
In terms of financial performance, Dave Inc. has reported a strong Q2, with a 31% increase in revenue and a record quarter of adjusted EBITDA. The company's monthly transacting member base has grown significantly, reaching 2.3 million members. Other developments include a 37% year-over-year increase in ExtraCash product originations and a 28% growth in Dave Card spending volume.
Analysts have acknowledged Dave's consistent reduction in operating expenses and resilience against proposed overdraft regulations. However, they foresee a higher reserve for unrecoverable advances and provision for credit losses due to expected higher receivables at quarter ends. As part of its future strategy, Dave Inc. is considering a second banking partner and plans to provide additional credit to higher-quality customers within the same paycheck period by year's end.
InvestingPro Insights
Following Dan Preston's significant share sale at Dave Inc. (NASDAQ:DAVE), it's worth noting some key financial metrics and insights from InvestingPro that provide context to this insider transaction.
Dave Inc. has shown impressive growth, with revenue increasing by 30% over the last twelve months to $319.36 million. This strong performance is reflected in the stock's remarkable year-to-date price return of 853.61%, indicating investor confidence in the company's trajectory.
An InvestingPro Tip highlights that Dave's net income is expected to grow this year, which aligns with the company's recent financial performance. The stock's price-to-earnings (P/E) ratio stands at 20.16, suggesting it may be trading at a reasonable valuation relative to its earnings potential.
However, another InvestingPro Tip cautions that the stock's RSI suggests it may be in overbought territory, which could explain the timing of Preston's share sale. This insight, along with 13 additional tips available on InvestingPro, offers valuable perspective for investors considering Dave Inc.'s stock.
The company's market capitalization of $1.15 billion and its strong revenue growth of 40.54% in the most recent quarter underscore its position as a growing player in the fintech space. With a gross profit margin of 57.74%, Dave Inc. demonstrates solid profitability in its operations.
For those seeking a more comprehensive analysis, InvestingPro offers a total of 15 tips for Dave Inc., providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.