RDVT.NASDAQRed Violet, INC

Form 4: Red Violet CFO Sells Shares Under 10b5-1 Plan

Sentiment:

Insider Transaction Report

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Red Violet's Chief Financial Officer, Daniel MacLachlan, reported multiple sales of common stock totaling 14,990 shares over several days in November 2025 under a pre-arranged plan.

Summary

  • Daniel MacLachlan, Chief Financial Officer of Red Violet, Inc. (RDVT), sold a total of 14,990 shares of common stock.
  • The transactions occurred between November 10, 2025, and November 13, 2025.
  • The sales were executed pursuant to a Rule 10b5-1(c) contract, instruction, or written plan.
  • Transaction prices ranged from a weighted average of $56.73 to $58.81 per share.
  • Following these transactions, MacLachlan beneficially owns 358,163 shares of common stock.
  • Beneficial ownership includes 26,666 Restricted Stock Units (RSUs) granted on November 30, 2023, which vest in two equal installments on December 1, 2025, and December 1, 2026.
  • Beneficial ownership 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: The filing reports routine insider stock sales executed under a Rule 10b5-1 plan. While insider selling can sometimes be viewed negatively, the pre-planned nature mitigates much of that concern, making the overall sentiment neutral from a transactional perspective.

Positives

  • The transactions were made pursuant to a Rule 10b5-1(c) plan, indicating pre-scheduled sales and adherence to regulatory best practices for insider trading.

Negatives

  • The sale of 14,990 shares by a key executive, even if pre-planned, represents a reduction in direct ownership and could be perceived by some investors as a lack of conviction.

Future Outlook

No specific future outlook or guidance is provided in this insider transaction report, beyond the scheduled vesting of Restricted Stock Units (RSUs) in 2025, 2026, and 2027.

Management Comments

  • The transactions were made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Industry Context

This Form 4 filing reports individual insider transactions and does not provide broader industry context or trends.

Stakeholder Impact

  • Shareholders may interpret the insider selling as a slight negative signal, though the execution under a 10b5-1 plan typically reduces the perceived significance of such transactions.

Next Steps

  • First vesting installment of 26,666 RSUs on December 1, 2025.
  • First vesting installment of 21,000 RSUs on November 1, 2026.
  • Second vesting installment of 26,666 RSUs on December 1, 2026.
  • Second vesting installment of 21,000 RSUs on November 1, 2027.

Key Dates

DateDescription
11/30/2023Grant date for 26,666 Restricted Stock Units (RSUs).
11/04/2024Grant date for 21,000 Restricted Stock Units (RSUs).
11/10/2025Earliest transaction date for common stock sales.
11/10/2025Sale of 732 shares of common stock at a weighted average price of $58.81.
11/10/2025Sale of 6,274 shares of common stock at a weighted average price of $58.03.
11/11/2025Sale of 2,184 shares of common stock at a weighted average price of $57.81.
11/12/2025Sale of 654 shares of common stock at a weighted average price of $58.10.
11/12/2025Sale of 3,445 shares of common stock at a weighted average price of $57.80.
11/13/2025Sale of 444 shares of common stock at a weighted average price of $57.57.
11/13/2025Sale of 1,267 shares of common stock at a weighted average price of $56.73.
11/13/2025Signature date of the reporting person.
12/01/2025First vesting installment for 26,666 RSUs.
11/01/2026First vesting installment for 21,000 RSUs.
12/01/2026Second vesting installment for 26,666 RSUs.
11/01/2027Second vesting installment for 21,000 RSUs.

Recommendation

hold

This Form 4 reports routine insider stock sales by the CFO under a pre-arranged 10b5-1 plan. Such transactions are typically for personal financial planning or diversification and do not inherently signal a change in the company's fundamental outlook or the insider's confidence. Therefore, this filing alone does not warrant a change in investment recommendation.

Keywords

Red Violet, RDVT, Insider Trading, Form 4, Stock Sale, CFO, Daniel MacLachlan, Equity Transaction, Restricted Stock Units, 10b5-1 Plan

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