Form 4: Red Violet CEO Sells Shares for Tax Obligations

Red Violet, Inc. CEO and Chairman Derek Dubner disposed of 9,379 shares of common stock to cover tax obligations related to RSU vesting.

Summary

• Derek Dubner, CEO and Chairman of Red Violet, Inc., reported a disposition of 9,379 shares of common stock.
• The transaction occurred on November 3, 2025, at a price of $53.63 per share.
• The disposition was made to satisfy tax obligations arising from the vesting of restricted stock units (RSUs).
• Specifically, it covered taxes for the third tranche of 13,333 RSUs granted on October 12, 2022, and the first tranche of 10,500 RSUs granted on November 4, 2024.
• Following this transaction, Dubner beneficially owns 571,000 shares of common stock directly.
• This beneficial ownership includes 26,666 RSUs granted on November 30, 2023, which vest in two equal installments on December 1, 2025, and December 1, 2026.
• It also includes 21,000 RSUs granted on November 4, 2024, which vest in two equal installments on November 1, 2026, and November 1, 2027.

Sentiment

Score: 5

Explanation: Neutral. The transaction is a routine disposition for tax purposes upon RSU vesting, not indicative of positive or negative sentiment towards the company's future.

Positives

• The disposition is for tax obligations, indicating a pre-planned event rather than a discretionary sale based on negative sentiment.
• Significant RSU holdings remain, aligning management's interests with shareholders.

Negatives

• A reduction in direct share ownership by a key executive, even if for tax purposes.

Future Outlook

No specific forward-looking statements or guidance beyond the RSU vesting schedules.

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction and does not provide specific industry context or trends.

Related Party Transactions

• Disposition of shares to the issuer for tax obligations upon RSU vesting, which is a standard mechanism for executive compensation.

Stakeholder Impact

• Shareholders: Minor dilution from the shares used for tax withholding, but also a sign of a structured executive compensation program.

Next Steps

• Vesting of 26,666 RSUs in two equal installments on December 1, 2025, and December 1, 2026.
• Vesting of 21,000 RSUs in two equal installments on November 1, 2026, and November 1, 2027.

Key Dates

Recommendation

This Form 4 reports a routine disposition of shares by the CEO to cover tax obligations upon RSU vesting. It does not provide new information about the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. The transaction is a standard part of executive compensation and does not signal a change in management's confidence or a significant shift in the company's outlook. Therefore, a 'hold' recommendation is appropriate, maintaining existing positions based on broader company fundamentals.

Keywords

Red Violet, RDVT, Derek Dubner, Form 4, insider trading, stock disposition, RSU vesting, CEO, Chairman, common stock, beneficial ownership