Jeffrey Alan Dell (NYSE:DELL), the Chief Information Officer of Red Violet, Inc. (NASDAQ:RDVT), has sold 10,000 shares of the company's common stock. The transaction, which took place on November 25, 2024, was executed at a price of $37.25 per share, resulting in a total sale value of $372,500.
Following this transaction, Dell holds 182,203 shares. This includes restricted stock units (RSUs) that are set to vest in stages from 2024 to 2027, subject to certain conditions. These RSUs are convertible into common stock on a one-for-one basis, with some potentially vesting earlier under specific circumstances.
In other recent news, Red Violet has reported a record-breaking third quarter for the fiscal year 2024. The company's Q3 2024 revenue hit a record $19.1 million, marking a 20% increase from the previous year. Adjusted gross profit reached $15.7 million, and adjusted EBITDA grew to $6.7 million, showcasing significant growth.
The company's IDI segment added 266 new customers, contributing to this growth. Red Violet's FOREWARN product has seen substantial expansion, now serving over 500 Realtor Associations.
These recent developments reflect the company's strategic focus on customer acquisition and expansion, particularly in investigative services, emerging markets, financial risk, and collections verticals. Executives at Red Violet have expressed confidence in the company's strategy and outlook for a record 2024 and sustained growth into 2025.
InvestingPro Insights
As Jeffrey Alan Dell reduces his stake in Red Violet, Inc. (NASDAQ:RDVT), investors might be curious about the company's current financial standing and market performance. According to InvestingPro data, Red Violet boasts a market capitalization of $535.12 million, with its stock trading near its 52-week high, reflecting a strong 82.24% return over the past year.
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 solid financial footing could provide reassurance to shareholders in light of the insider sale.
Red Violet's impressive gross profit margin of 80.39% for the last twelve months ending Q3 2024 underscores the company's operational efficiency. This aligns with an InvestingPro Tip noting the company's "impressive gross profit margins," which could be a key factor in its ability to generate value for shareholders.
However, investors should note that the stock is trading at a high P/E ratio of 105.49, suggesting a premium valuation. This elevated multiple, coupled with the InvestingPro Tip indicating that the stock's RSI suggests it may be in overbought territory, could explain why insiders like Dell might choose to realize gains at current levels.
For a more comprehensive analysis, InvestingPro offers 18 additional tips on Red Violet, providing deeper insights into the company's valuation, growth prospects, and market position.
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