Peter Benz, a director at Red Violet, Inc. (NASDAQ:RDVT), recently executed a series of stock sales, according to a filing with the Securities and Exchange Commission. On November 26 and 27, Benz sold a total of 25,000 shares of Red Violet common stock. The transactions were completed at prices ranging from $37.27 to $38.00 per share, amounting to a total value of approximately $935,429.
Following these sales, Benz holds 78,066 shares directly, in addition to 20,928 shares held indirectly through his 401(k) account. These transactions reflect Benz's continued management of his holdings in the company, which provides prepackaged software solutions.
In other recent news, Red Violet has reported a record-breaking third quarter for the fiscal year 2024, with a 20% year-over-year increase in revenue to $19.1 million and a 25% increase in adjusted EBITDA to $6.7 million. These impressive results are largely attributed to the company's strategic focus on customer acquisition and expansion, particularly in investigative services, emerging markets, financial risk, and collections verticals. The company's FOREWARN product has also seen substantial growth, now serving over 500 Realtor Associations and planning to penetrate further into the U.S. real estate market and other industries.
Red Violet's adjusted gross profit reached $15.7 million, and the company saw a 23% rise in adjusted net income to $3.1 million. The company generated a record $4.8 million in free cash flow in the third quarter and added 266 new customers to the IDI segment. The company's cash and cash equivalents increased to $35.7 million.
These recent developments have led to an optimistic outlook for Red Violet, with executives expressing confidence in the company's strategy and future growth. The company is focusing on larger enterprise and government client acquisitions and expects strong momentum carrying into 2025. The potential for growth in the FOREWARN product was also emphasized, with plans to expand its market reach.
InvestingPro Insights
Peter Benz's recent stock sales at Red Violet, Inc. (NASDAQ:RDVT) come at a time when the company's stock has shown remarkable performance. According to InvestingPro data, Red Violet has experienced a strong return of 79.75% over the last year, with an impressive 68% gain in the past six months alone. This upward trajectory aligns with the timing of Benz's decision to sell a portion of his holdings.
The company's financial health appears robust, with InvestingPro Tips highlighting that Red Violet holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This strong financial position may have contributed to investor confidence and the stock's recent performance.
Red Violet's business fundamentals also show promise. The company boasts impressive gross profit margins, which stood at 80.39% for the last twelve months as of Q3 2023. This high profitability in its core operations is a positive indicator for potential investors.
It's worth noting that while the stock has performed well, it is currently trading at a high earnings multiple, with a P/E ratio of 100.47. This valuation suggests that investors have high expectations for future growth, which is supported by the company's revenue growth of 21.43% over the last twelve months.
For readers interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for Red Violet, providing a deeper understanding of the company's financial position and market performance.
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