Dave (DAVE) Lost Appeal as Valuation Became Too Expensive

1 month ago 20

Soumya Eswaran

Tue, July 28, 2026 astatine 7:17 AM CDT 4 min read

Buckley Capital Advisors, an concern absorption company, released its 2nd 4th 2026 capitalist letter. A transcript of the missive tin be downloaded here. The 2nd 4th delivered strong, broad-based gains crossed the portfolio, with respective of the Fund's largest positions contributing to performance. Buckley Capital returned 36.0% nett during the 4th and 29.7% nett year-to-date, outperforming the iShares Russell 2000 Value and iShares Russell 2000. The steadfast remained disciplined successful recycling superior by trimming oregon exiting investments wherever the thesis had played retired oregon the risk-reward had weakened. Capital was redirected toward businesses wherever improving fundamentals, catalysts, and charismatic valuations enactment semipermanent upside. The steadfast continues to absorption connected misunderstood tiny and mid-cap companies with underappreciated net powerfulness and believes the portfolio is among its strongest successful caller years. In addition, delight cheque the firm's apical 5 holdings to cognize its champion picks successful 2026.

In its second-quarter 2026 capitalist letter, Buckley Capital highlighted Dave Inc. (NASDAQ:DAVE). Dave Inc. (NASDAQ:DAVE) provides assorted fiscal products and services done its fiscal services platform. On July 27, 2026, Dave Inc. (NASDAQ:DAVE) closed astatine $405.65 per share. One-month instrumentality of Dave Inc. (NASDAQ:DAVE) was 8.87%, and its shares gained 84.19% implicit the past 52 weeks. Dave Inc. (NASDAQ:DAVE) has a marketplace capitalization of $5.16 cardinal with a 52-week trading scope betwixt $152.21 and $458.25.

Buckley Capital stated the following regarding Dave Inc. (NASDAQ:DAVE) in its Q2 2026 capitalist letter:

"Dave Inc. (NASDAQ:DAVE) has rallied implicit 100% from our mean cost. While we judge Dave is simply a large business, the banal has become very expensive. It is present trading astatine the precocious extremity of its humanities aggregate range, and arsenic such, we afloat exited the position. While we proceed to judge the concern volition bash well, it volition person to execute successful enactment with our upside lawsuit for determination to beryllium meaningful returns going forward. This whitethorn beryllium possible, but the risk-reward is not arsenic charismatic arsenic different portfolio holdings.

Our archetypal thesis played retired precise well: we believed Dave is simply a large concern that gives the mean American user surviving paycheck to paycheck entree to tiny but meaningful amounts of short-term cash. We besides felt its concern exemplary is accordant and predictable. Finally, we judge it has a large absorption squad which knows however to springiness blimpish guidance and make a beat-and-raise dynamic implicit the people of respective quarters. Yet the banal trades with irrationally ample swings. When we made our archetypal concern past October, we felt Dave was trading astatine acold excessively inexpensive a aggregate connected our ain interior estimates: we were astatine $17.00/share for 2026 portion astatine the clip the merchantability broadside was astir $12.00. So connected our estimates, we were buying Dave astatine 11x net erstwhile it was increasing net astatine northbound of 30% per year. We predicted that sell-side expectations would person to determination dramatically higher..." (Click present to work the afloat text)

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