Form 4: Red Violet CIO Sells Shares Under Pre-Arranged Plan

Red Violet's Chief Information Officer, Jeffrey Alan Dell, sold a total of 9,900 shares of common stock over several days in November 2025 under a Rule 10b5-1 plan.

Summary

• Jeffrey Alan Dell, Chief Information Officer of Red Violet, Inc. (RDVT), reported the sale of 9,900 shares of common stock through multiple transactions between November 10, 2025, and November 13, 2025.
• These sales were conducted under a Rule 10b5-1 pre-arranged trading plan, indicating the transactions were scheduled in advance.
• The shares were sold at weighted average prices ranging from $56.72 to $58.81 per share.
• Following these transactions, Mr. Dell's direct beneficial ownership stands at 155,934 shares of Red Violet common stock.
• This beneficial ownership includes 20,000 Restricted Stock Units (RSUs) originally granted on November 30, 2023, which vest in two equal installments on December 1, 2025, and December 1, 2026.
• Additionally, the beneficial ownership includes 15,750 RSUs originally granted on November 4, 2024, which vest in two equal installments on November 1, 2026, and November 1, 2027.

Sentiment

Score: 5

Explanation: The sale of shares by a Chief Information Officer, while reducing direct ownership, was conducted under a pre-arranged Rule 10b5-1 plan, suggesting a planned financial event rather than a reaction to new company-specific information. The remaining beneficial ownership, including significant RSU holdings, indicates continued alignment with shareholder interests.

Positives

• The sales were executed under a Rule 10b5-1 plan, which demonstrates a pre-arranged trading strategy and mitigates concerns about insider trading based on material non-public information.

Negatives

• Insider selling, even if planned, can sometimes be perceived negatively by investors as it reduces an executive's direct equity stake in the company.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• The filing is signed by Jeffrey Dell, acknowledging the reported transactions.

Industry Context

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

Corporate Governance

Stakeholder Impact

• Shareholders may interpret insider selling as a signal, though the Rule 10b5-1 plan mitigates concerns about immediate negative implications.
• The executive's continued significant beneficial ownership, including RSUs, maintains alignment with shareholder interests.

Next Steps

• Vesting of 20,000 RSUs in two equal installments on December 1, 2025, and December 1, 2026.
• Vesting of 15,750 RSUs in two equal installments on November 1, 2026, and November 1, 2027.

Key Dates

Recommendation

The insider sale by the CIO was executed under a Rule 10b5-1 plan, indicating a pre-scheduled transaction rather than a reaction to new material non-public information. While insider selling can sometimes be viewed negatively, the planned nature and the executive's continued significant beneficial ownership (including RSUs) suggest a neutral to slightly cautious 'hold' stance, pending further company-specific news or broader market trends.

Keywords

Red Violet, RDVT, Insider Sale, Form 4, Jeffrey Alan Dell, CIO, Stock Transaction, Rule 10b5-1, Restricted Stock Units