Fintech firm Dave drops after announcing $150 mln convertible deal

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