James Patrick Reilly, President of Red Violet, Inc. (NASDAQ:RDVT), has sold 10,000 shares of the company's common stock, according to a recent SEC filing. The shares were sold at a price of $37.25 each, amounting to a total transaction value of $372,500. Following this sale, Reilly holds a total of 272,124 shares, which includes restricted stock units (RSUs) with various vesting schedules. These RSUs are set to convert into common stock in the coming years under specific conditions.
In other recent news, Red Violet reported record-breaking revenue for Q3 2024, marking a 20% increase from the previous year, reaching $19.1 million. The company also experienced a 25% rise in adjusted EBITDA, culminating at $6.7 million. This significant growth is attributed to Red Violet's strategic focus on customer acquisition and expansion, particularly in investigative services, emerging markets, financial risk, and collections verticals.
The company's FOREWARN product continues to gain traction, now serving over 500 Realtor Associations and planning further penetration into the U.S. real estate market. Adjusted gross profit reached $15.7 million, and a record $4.8 million in free cash flow was generated in the third quarter. The company also added 266 new customers to its IDI segment, and cash equivalents increased to $35.7 million.
Executives at Red Violet have expressed confidence in the company's strategy and outlook for a record 2024 with sustained growth projected into 2025. The company anticipates that ongoing investments in sales and marketing will drive this continued growth, with a focus on larger enterprise and government client acquisitions. These are the recent developments in Red Violet's business operations.
InvestingPro Insights
Red Violet, Inc. (NASDAQ:RDVT) has been experiencing significant market momentum, as evidenced by recent InvestingPro data. The company's stock has shown impressive returns, with a 35.74% price increase over the past month and a substantial 78.55% gain over the last six months. This upward trend aligns with the insider sale by President James Patrick Reilly, potentially indicating a strategic decision to capitalize on the stock's strong performance.
InvestingPro Tips highlight that RDVT is trading near its 52-week high, with the current price at 98.75% of its peak. This information, coupled with the stock's recent performance, suggests that investors have been bullish on the company's prospects. However, it's worth noting that the RSI indicates the stock may be in overbought territory, which could signal a potential correction in the near term.
The company's financials also present an interesting picture. RDVT boasts impressive gross profit margins, with the latest data showing a gross profit margin of 80.39% for the last twelve months as of Q3 2024. This high margin reflects the company's efficiency in converting revenue into profit before accounting for other costs.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for RDVT, providing a deeper understanding of the company's financial health and market position.
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