Form 4: Red Violet Inc. President James Patrick Reilly Reports Stock Transactions

James Patrick Reilly, President of Red Violet, Inc., reports the vesting of restricted stock units and a disposition of shares to cover tax obligations.

Summary

• On October 1, 2024, James Patrick Reilly, President of Red Violet, Inc., reported transactions involving the company's stock.
• Reilly acquired 10,833 shares of common stock through the vesting of restricted stock units (RSUs) that were part of a grant approved on September 24, 2021.
• He also disposed of 5,417 shares to the issuer to cover tax obligations related to the vesting of these RSUs at a price of $28.45 per share.
• Following these transactions, Reilly directly owns 257,291 shares of Red Violet, Inc.
• This total includes 26,666 RSUs granted on October 12, 2022, vesting in two equal installments on November 1, 2024, and November 1, 2025.
• It also includes 40,000 RSUs granted on November 30, 2023, vesting in three equal installments on December 1, 2024, December 1, 2025, and December 1, 2026.
• Reilly also reports transferring 863 shares to his ex-spouse due to a domestic relations order and no longer reports beneficial ownership of those shares.

Sentiment

Score: 6

Explanation: The document is neutral in sentiment. It simply reports required information about stock transactions. The vesting of RSUs is a positive sign, but the sale for tax obligations is a neutral event.

Positives

• The vesting of RSUs indicates that Reilly is meeting the conditions of his equity grants, which is generally tied to performance or continued employment.

Negatives

• The disposition of shares to cover tax obligations, while routine, slightly reduces Reilly's direct holdings in the company.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. These filings are closely watched by investors seeking insights into management's perspective on the company's stock.

Comparison to Industry Standards

• Equity compensation is a common practice across the technology industry, with companies like Palantir, Upstart, and SoundHound AI using RSUs to attract and retain talent.
• The vesting schedules and terms of Reilly's RSUs are fairly standard compared to similar grants at other publicly traded companies.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders.
• The increased transparency through the Form 4 filing can help maintain investor confidence.

Key Dates