DAVE - Dave to implement 1-for-32 reverse stock split after 96% Y/Y collapse

Fintech firm Dave ( NASDAQ: DAVE ) said Thursday it's board has approved a 1-for-32 reverse stock split of the company's Class A and Class V common stock groups, effective at 5:01 p.m. ET. Shares slid 4.7% to 28 cents in after-hours trading.

The neobank's Class A shares are expected to start trading on a split-adjusted basis when the market opens on Friday. Based on the closing price of DAVE on Thursday ($0.29), the implied post-split stock price is approximately $9.44 per share.

The goal behind the move is to boost DAVE's stock price to meet the minimum per share bid price requirement for continued listing on The Nasdaq Global Market. The aim is also to make the stock more attractive to institutional investors who may have minimum share price targets for new stakes.

DAVE started trading at $9.80 a share on April 26, 2021 and reached as high as $14.30 at the start of February, 2022. But, like most fintechs, DAVE saw immense selling pressure after the Federal Reserve started its aggressive tightening cycle in March, 2022, eventually dropping to under $1 in June.

Seeking Alpha's Quant rating system flagged DAVE at high risk of performing badly in November, 2022 given negative EPS revisions and decelerating momentum.

Previously, (Nov. 27) Dave CEO told Seeking Alpha about it focus on product expansion and margin improvement .

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