Form 4: Red Violet CEO Sells 15,000 Shares Under 10b5-1 Plan

Red Violet's CEO and Chairman, Derek Dubner, reported the sale of 15,000 shares of common stock between November 10 and November 13, 2025, pursuant to a Rule 10b5-1 plan.

Summary

• Derek Dubner, the Chief Executive Officer, Chairman of the Board, Director, and a 10% owner of Red Violet, Inc. (RDVT), reported multiple sales of common stock.
• A total of 15,000 shares of common stock were sold in a series of transactions between November 10, 2025, and November 13, 2025.
• The sales were executed at weighted average prices ranging from $56.73 to $58.81 per share.
• These transactions were made pursuant to a Rule 10b5-1(c) plan, indicating they were pre-scheduled.
• Following these sales, Dubner's direct beneficial ownership stands at 556,000 shares of common stock.
• The beneficial ownership of 556,000 shares includes 26,666 Restricted Stock Units (RSUs) granted on November 30, 2023, vesting in two equal installments on December 1, 2025, and December 1, 2026.
• It also includes 21,000 RSUs granted on November 4, 2024, vesting in two equal installments on November 1, 2026, and November 1, 2027.

Sentiment

Score: 5

Explanation: The sales by CEO Derek Dubner, while reducing his direct beneficial ownership, were conducted under a pre-arranged Rule 10b5-1 plan. This mitigates the negative signal typically associated with insider selling, as the transactions were not based on recent discretionary decisions.

Negatives

• The reduction in direct beneficial ownership by a key executive, even if pre-planned, can be perceived by some investors as a decrease in insider alignment with shareholder interests.

Future Outlook

The filing does not provide a future outlook for the company's performance, focusing solely on insider transactions.

Industry Context

This insider transaction report does not provide specific industry context, but insider selling is a common occurrence across various industries, often for personal financial planning or diversification.

Stakeholder Impact

• Shareholders may view the reduction in the CEO's direct beneficial ownership with caution, even if the sales were pre-planned, as it represents a decrease in direct equity alignment.

Next Steps

• The remaining Restricted Stock Units (RSUs) held by Derek Dubner are scheduled to vest in installments on December 1, 2025, December 1, 2026, November 1, 2026, and November 1, 2027.

Key Dates

Recommendation

The sales by CEO Derek Dubner were executed under a Rule 10b5-1 plan, which suggests the transactions were pre-scheduled and not indicative of a sudden loss of confidence. While the reduction in direct beneficial ownership by a key executive is noted, the pre-planned nature of the sales supports a 'hold' recommendation rather than a 'sell', as it doesn't necessarily signal new negative developments.

Keywords

Red Violet, RDVT, Insider Trading, Form 4, Stock Sale, Derek Dubner, CEO, Director, Chairman, Equity Transaction, 10b5-1 Plan, Restricted Stock Units