Form 4: Red Violet CEO Dubner Reports Stock Transactions

Red Violet CEO Derek Dubner reported the disposition of shares for tax obligations and the grant of new restricted stock units.

Summary

• Derek Dubner, CEO and Chairman of the Board of Red Violet, Inc. (RDVT), reported transactions on December 19, 2025.
• Dubner disposed of 5,247 shares of common stock at a price of $55.87 per share to cover tax obligations related to the vesting of restricted stock units (RSUs).
• This disposition was upon the vesting of the second tranche of 13,333 RSUs originally granted on November 30, 2023.
• Following this disposition, Dubner's direct beneficial ownership was 550,753 shares.
• On the same date, Dubner received a new grant of 18,520 RSUs, convertible into common stock on a one-for-one basis.
• After these transactions, Dubner's direct beneficial ownership increased to 569,273 shares.
• Existing RSUs include 13,333 units from November 30, 2023, vesting on December 1, 2026.
• Additionally, 21,000 RSUs from November 4, 2024, vest in two equal installments on November 1, 2026, and November 1, 2027.
• The newly granted 18,520 RSUs will vest in three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive due to the new RSU grant, which aligns management's interests with long-term shareholder value. The disposition for tax purposes is a neutral, routine event.

Positives

• The grant of 18,520 new Restricted Stock Units (RSUs) to the CEO indicates continued long-term incentive alignment between management and shareholders.

Negatives

• The disposition of 5,247 shares was for tax obligations, which is a routine event for RSU vesting and not inherently negative, but it does represent a reduction in direct shareholding.

Future Outlook

The filing details future vesting schedules for various Restricted Stock Unit (RSU) grants, indicating continued long-term incentive for the CEO. Specifically, 13,333 RSUs vest on December 1, 2026; 21,000 RSUs vest in two equal installments on November 1, 2026, and November 1, 2027; and the newly granted 18,520 RSUs vest in three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028.

Industry Context

This Form 4 filing is a routine disclosure of insider transactions, specifically related to executive compensation and tax obligations. It does not provide information on broader industry trends or competitive landscape, but rather reflects standard practices for incentivizing and compensating senior leadership within publicly traded companies.

Stakeholder Impact

• Shareholders: The new RSU grant aligns the CEO's long-term interests with shareholder value, while the tax-related disposition is a minor, routine event with minimal impact on overall share structure.

Next Steps

• Future vesting of 13,333 RSUs on December 1, 2026.
• Future vesting of 21,000 RSUs in two equal installments on November 1, 2026, and November 1, 2027.
• Future vesting of 18,520 RSUs in three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation, including the vesting of restricted stock units and a new grant. Such transactions are common and do not typically provide new fundamental information that would warrant a change in an investment recommendation. The core investment thesis for Red Violet, Inc. remains unchanged based solely on this filing.

Keywords

Red Violet, RDVT, Form 4, Insider Transaction, Restricted Stock Units, RSU, Executive Compensation, Stock Grant, Share Disposition