Fintech co Dave extends rally after boosted $175 mln convertible bond offering

Dave

05/03/2026 14:46

Updates stock activity

    ** Banking app Dave's DAVE.O shares up 5.9% at $223 early Thurs and on course to rise for eighth straight day after above-target raise

    ** Los Angeles, California-based firm early Thurs announced pricing private offering of $175 mln 0% 5-yr convertible bonds

    ** Initial conversion price of $279.13 is 32.5% premium to stock's last close of $210.67

    ** DAVE shares rose for seventh straight session on Weds, closing up 0.9% after co unveiled $150 mln offering for general purposes, including share repurchases

    ** Co to use proceeds to repurchase 334,000 shares for approx $70.5 mln to facilitate hedging, and use ~$15 mln to fund capped calls

    ** Initial cap price of $421.34 is double stock's last sale on Weds

** With move on Thurs, stock up fractionally YTD and up ~140% over the past 12 months

    ** All 10 analysts are bullish on the stock and their median PT of $310 implies 47% upside to last close, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))