Form 4: Red Violet CFO's Latest Stock Transactions

Red Violet's CFO, Daniel MacLachlan, reported a disposition of shares for tax obligations and a new grant of 18,520 restricted stock units.

Summary

• Daniel MacLachlan, Chief Financial Officer of Red Violet, Inc. (RDVT), reported transactions on December 19, 2025.
• MacLachlan 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.
• This disposition was associated with the vesting of the second tranche of 13,333 RSUs originally granted on November 30, 2023.
• He also received a new grant of 18,520 restricted stock units (RSUs) on December 19, 2025.
• These new RSUs will vest in three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028.
• Following these transactions, MacLachlan directly beneficially owns 370,436 shares of common stock, which includes various RSU grants.
• His total beneficial ownership also includes 466 shares held indirectly through an IRA.

Sentiment

Score: 6

Explanation: The filing indicates routine executive compensation activities, including a new RSU grant which is generally positive for aligning management incentives with shareholder interests, balanced by a standard tax-related share disposition.

Positives

• The grant of 18,520 new Restricted Stock Units (RSUs) aligns the CFO's interests with long-term shareholder value.
• The RSU grants include accelerated vesting clauses under certain circumstances, providing potential upside.

Negatives

• The disposition of 5,247 shares for tax obligations reduces the CFO's direct common stock holdings, though this is a standard practice upon RSU vesting.

Risks

• The value of the Restricted Stock Units (RSUs) is subject to the future market price of Red Violet, Inc. common stock.
• Vesting of RSUs is subject to continued employment and other potential conditions, as indicated by 'subject to accelerated vesting under certain circumstances'.

Future Outlook

The reporting person has significant future equity incentives tied to the company's performance, with 18,520 new RSUs vesting in equal installments through December 2028, and previously granted RSUs vesting through November 2027. These vesting schedules align the CFO's long-term compensation with the company's future stock price performance.

Industry Context

This Form 4 filing reflects a routine executive compensation event, common across publicly traded companies. The grant of Restricted Stock Units (RSUs) is a standard practice to incentivize and retain key management personnel, aligning their interests with long-term shareholder value. The disposition of shares for tax obligations upon vesting is also a typical occurrence in such compensation structures.

Stakeholder Impact

• Shareholders: The grant of RSUs aligns the CFO's long-term interests with shareholder value, potentially encouraging decisions that benefit the stock price. The vesting and conversion of RSUs could lead to minor dilution over time.
• Employees (specifically the CFO): The RSU grants represent a significant component of the CFO's compensation, incentivizing continued performance and retention.

Next Steps

• Vesting of 13,333 RSUs on December 1, 2026.
• First installment vesting of 21,000 RSUs on November 1, 2026.
• First installment vesting of 18,520 RSUs on December 1, 2026.
• Second installment vesting of 21,000 RSUs on November 1, 2027.
• Second installment vesting of 18,520 RSUs on December 1, 2027.
• Third installment vesting of 18,520 RSUs on December 1, 2028.

Key Dates

Keywords

Red Violet, RDVT, Daniel MacLachlan, CFO, Form 4, Insider Trading, Restricted Stock Units, RSU, Stock Grant, Beneficial Ownership, Executive Compensation