BOCA RATON, FL—Derek Dubner, CEO and Chairman of the Board at Red Violet, Inc. (NASDAQ:RDVT), recently sold 10,000 shares of the company's common stock. The transaction, dated November 25, 2024, was completed at a price of $37.25 per share, resulting in a total sale value of $372,500.
Following this transaction, Dubner retains ownership of 597,046 shares, which includes Restricted Stock Units (RSUs) that are subject to vesting conditions. These RSUs are scheduled to vest over the next few years, with some potentially accelerating under certain conditions.
In other recent news, Red Violet has reported a record-breaking Q3 in fiscal year 2024, with a 20% increase in revenue to $19.1 million and a 25% increase in adjusted EBITDA to $6.7 million. Key verticals reported double-digit growth, and the company added 266 new customers in its IDI segment. The company's FOREWARN product continues to gain traction, now serving over 500 Realtor Associations, with plans for further expansion. These developments are part of Red Violet's strategic focus on customer acquisition and expansion, particularly in investigative services, emerging markets, financial risk, and collections verticals. Executives expressed confidence in the company's strategy and outlook for a record 2024 and sustained growth into 2025. The company anticipates closing out a record 2024 with strong momentum carrying into 2025, and ongoing investments in sales and marketing are expected to drive continued growth. The company's financial position appears robust, with an increase in cash and cash equivalents to $35.7 million as of September 30, 2024.
InvestingPro Insights
While Derek Dubner's recent stock sale might raise eyebrows, a closer look at Red Violet's financial metrics and market performance provides additional context. According to InvestingPro data, the company's stock has shown a strong return over the last year, and is currently trading near its 52-week high. This robust performance aligns with an InvestingPro Tip indicating that Red Violet has delivered a significant return over the last week.
From a financial standpoint, Red Violet appears to be in a solid position. An InvestingPro Tip reveals that the company holds more cash than debt on its balance sheet, suggesting financial stability. Additionally, the company boasts impressive gross profit margins, which could be a contributing factor to its strong market performance.
It's worth noting that InvestingPro offers 18 additional tips for Red Violet, providing a more comprehensive analysis for investors looking to delve deeper into the company's prospects. These insights could be particularly valuable given the recent insider transaction and the company's current market position.
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