Fintech firm Dave drops after announcing $150 mln convertible deal

Dave

03/03/2026 21:53

** Shares of digital banking firm Dave DAVE.O down 4.1%
    in extended trading to $200.24 as it looks to raise capital

    ** Los Angeles, California-based firm unveils proposed private offering of $150 mln 5-yr convertible bonds

** It plans to use net offering proceeds for general corporate purposes, including additional share repurchases under its stock buyback program

** Also intends to use proceeds to fund capped calls, derivative transactions employed to help offset potential dilution, and repurchase its shares to facilitate hedging

** Co has ~$2.8 bln market cap based on 13.5 mln shares outstanding

** DAVE shares rose 4.9% to close at $208.76 on Tues after co late Mon posted Q4 beat and 2026 adj EPS forecast of $14-$15 topped consensus

** Through Tues, stock down ~6% YTD but up 120% over the past 12 months

    ** All 10 analysts are bullish, including 2 "strong buy" ratings; median PT $310, per LSEG data

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

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