Key Points
Divisadero Street purchased 379,232 shares of Dave; estimated trade value of $73.63 million based on quarterly average pricing.
Post-trade, the fund held 640,840 shares in Dave valued at $111.56 million.
The position now accounts for 4.2% of fund AUM, placing it within the fund’s top five holdings.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Divisadero Street Capital Management, LP increased its stake in Dave(NASDAQ:DAVE) by 379,232 shares in the first quarter.
The estimated value of this purchase was $73.63 million, calculated using the average share price across the first quarter. The quarter-end value of the position rose by $53.64 million, a figure affected by both the additional shares and market price movement.
What else to know
- Trade direction: buy; Dave represents 4.2% of 13F reportable assets under management following the transaction.
- Top five fund holdings after the filing:
- NYSE: SGHC: $176.32 million (6.6% of AUM)
- NYSE: RSI: $139.78 million (5.3% of AUM)
- NASDAQ: WLDN: $124.52 million (4.7% of AUM)
- NASDAQ: DAVE: $111.56 million (4.2% of AUM)
- NYSE: TPB: $105.52 million (4.0% of AUM)
- As of May 14, 2026, Dave shares were priced at $234.49, up 27.9% over the past year, outperforming the S&P 500 by 0.61 percentage points.
- Dave’s trailing twelve-month revenue is $604.62 million, with net income of $224.99 million and a five-year revenue CAGR of 33.3%.
- Fund reported 118 total positions and $2.39 billion in 13F reportable U.S. equity assets as of March 31, 2026.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close May 14, 2026) | $234.49 |
| Market Capitalization | $3.15 billion |
| Revenue (TTM) | $604.62 million |
| Net Income (TTM) | $224.99 million |
Company Snapshot
- Dave offers digital banking services, including personal financial management tools, overdraft alternatives, and a job application portal through its online platform.
- It provides financial products and digital banking services to consumers through a technology-driven platform.
- The company targets individuals seeking accessible financial solutions, particularly those looking for alternatives to traditional banking and short-term credit products.
Dave operates as a technology-driven financial services provider, delivering a suite of digital banking and personal finance products.
The company leverages its online platform to offer innovative solutions such as overdraft alternatives and financial management tools, catering to consumers underserved by traditional banks. Its scalable business model and focus on user-centric technology position it competitively within the digital banking sector.
What this transaction means for investors
Miami-based Divisadero Street Capital Management’s first quarter purchase of Dave shares is a noteworthy event. It represents a significant increase in its stake, propelling Dave into the hedge fund’s top five holdings. This suggests Divisadero Street is bullish on the stock.
The timing of the buy is key here. Dave shares hit a 52-week low of $152.21 on Feb. 5, which may have been a factor in Divisadero Street doubling its position from 261,608 shares in the previous quarter. The hedge fund also possesses call options on the stock.
Divisadero Street’s purchase has already paid off. Since the Q1 buy, Dave shares soared to a 52-week high of $287.69 on April 22.
Dave’s business is growing rapidly. The company reported Q1 revenue of $158.4 million, which represents an impressive 47% year-over-year increase.
Dave may be a worthwhile investment, but now isn’t the best time to buy with the rise in share price. The stock is very volatile, as illustrated by its high beta of four, so investors who want to purchase the stock should wait for the share price to drop first.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends Turning Point Brands and Willdan Group. The Motley Fool has a disclosure policy.
