Form 4: Red Violet Inc. President James Reilly Reports Stock Transactions Following RSU Vesting
SEC Form 4 Filing
Red Violet Inc.'s President, James Reilly, acquired 13,334 shares of common stock through the vesting of restricted stock units and disposed of 6,667 shares to cover tax obligations.
Summary
- James Reilly, President of Red Violet, Inc., reported a transaction involving the vesting of 13,334 restricted stock units (RSUs) on December 2, 2024.
- These RSUs were part of a grant originally approved on November 30, 2023.
- Following the vesting, 6,667 shares were disposed of to cover tax obligations at a price of $36.8 per share.
- After these transactions, Mr. Reilly beneficially owns 265,457 shares of Red Violet common stock.
- The reported transactions also include previously granted RSUs that vest at future dates.
Sentiment
Score: 6
Explanation: The document reflects a routine transaction related to executive compensation. It is neither particularly positive nor negative, but rather a standard part of corporate operations.
Positives
- The vesting of RSUs indicates that performance milestones were likely met.
- The acquisition of shares increases the executive's stake in the company.
Negatives
- The disposal of shares to cover tax obligations reduces the number of shares held by the executive.
Risks
- The sale of shares to cover tax obligations could be perceived negatively by the market if it is interpreted as a lack of confidence in the company's future performance.
- Future vesting of RSUs could lead to further sales to cover tax obligations, potentially creating selling pressure on the stock.
Future Outlook
The document does not contain any specific forward-looking statements, but it does indicate future vesting dates for other RSU grants.
Industry Context
This is a standard SEC Form 4 filing, which is common for publicly traded companies when insiders make transactions in their company's stock. It is a routine part of corporate governance and transparency.
Comparison to Industry Standards
- The vesting of RSUs and subsequent sale for tax obligations is a common practice among publicly traded companies.
- Many companies use RSUs as part of their executive compensation packages, with vesting schedules tied to performance or time-based milestones.
- The tax obligations arising from RSU vesting often lead to the sale of a portion of the shares, which is a standard practice.
Stakeholder Impact
- The transaction has a minor impact on shareholders as it involves a small number of shares relative to the total outstanding shares.
- The transaction is part of the executive compensation plan, which is important for attracting and retaining talent.
Key Dates
| Date | Description |
|---|---|
| 2022-10-12 | Date of original grant of 13,333 RSUs that vest on November 1, 2025. |
| 2023-11-30 | Date of original grant of 26,666 RSUs that vest in two equal installments on December 1, 2025 and December 1, 2026. |
| 2023-11-30 | Date of approval of the RSU grant that vested on December 2, 2024. |
| 2024-11-04 | Date of original grant of 31,500 RSUs that vest in three equal installments on November 1, 2025, November 1, 2026, and November 1, 2027. |
| 2024-12-02 | Date of the reported transaction, including the vesting of 13,334 RSUs and the disposal of 6,667 shares for tax obligations. |
| 2025-11-01 | Vesting date for 13,333 RSUs granted on October 12, 2022 and the first tranche of 31,500 RSUs granted on November 4, 2024. |
| 2025-12-01 | Vesting date for the first tranche of 26,666 RSUs granted on November 30, 2023. |
| 2026-11-01 | Vesting date for the second tranche of 31,500 RSUs granted on November 4, 2024. |
| 2026-12-01 | Vesting date for the second tranche of 26,666 RSUs granted on November 30, 2023. |
| 2027-11-01 | Vesting date for the third tranche of 31,500 RSUs granted on November 4, 2024. |
Keywords
Red Violet Inc, James Reilly, Restricted Stock Units, RSU, Stock Vesting, Beneficial Ownership, SEC Form 4, Insider Trading
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