Form 4: Red Violet President Sells 15,000 Shares

Red Violet, Inc. President James Patrick Reilly reported the sale of 15,000 shares of common stock over several transactions in mid-November 2025, executed under a Rule 10b5-1 plan.

Summary

• James Patrick Reilly, President of Red Violet, Inc. (RDVT), reported the sale of 15,000 shares of common stock.
• The sales occurred across multiple transactions between November 10, 2025, and November 13, 2025.
• These transactions were executed pursuant to a Rule 10b5-1 plan, indicating they were pre-scheduled.
• The shares were sold at weighted average prices ranging from $56.73 to $58.81 per share.
• Following these transactions, Mr. Reilly beneficially owns 231,078 shares directly.
• The beneficially owned shares include 26,666 Restricted Stock Units (RSUs) granted on November 30, 2023, vesting in two equal installments on December 1, 2025, and December 1, 2026.
• Also included are 21,000 RSUs granted on November 4, 2024, vesting in two equal installments on November 1, 2026, and November 1, 2027.

Sentiment

Score: 5

Explanation: The sales by a key executive, while reducing direct equity ownership, were conducted under a pre-arranged Rule 10b5-1 plan, which mitigates the negative signal typically associated with insider selling. The overall sentiment is neutral as these are routine, planned transactions.

Negatives

• The reduction in direct equity ownership by a key executive, even under a pre-arranged plan, can sometimes be perceived as a minor negative signal by the market.

Industry Context

Insider selling, particularly when executed under a Rule 10b5-1 plan, is a common occurrence for executives managing their personal finances and diversifying their portfolios. While it reduces an executive's direct equity stake, the pre-scheduled nature of these sales typically means they are not a reaction to new, material non-public information, thus having a more neutral impact compared to unscheduled sales.

Stakeholder Impact

• Shareholders may view the reduction in direct equity ownership by a key executive with slight caution, though the pre-arranged nature of the sales under a 10b5-1 plan lessens the immediate concern about management's confidence in the company's future.

Next Steps

• The remaining 231,078 shares beneficially owned by Mr. Reilly include unvested Restricted Stock Units (RSUs) that will vest in installments on December 1, 2025, December 1, 2026, November 1, 2026, and November 1, 2027.

Key Dates

Recommendation

The insider sales by President James Patrick Reilly were executed under a Rule 10b5-1 plan, indicating pre-scheduled transactions rather than a reaction to new material information. While a reduction in insider ownership can be a minor negative signal, the planned nature of these sales suggests a neutral impact on the company's fundamental outlook. Investors should maintain their current position and monitor future company performance and additional insider activity.

Keywords

Red Violet, RDVT, Insider Trading, Form 4, Stock Sale, James Patrick Reilly, Equity Sales, 10b5-1 Plan