Red Violet (NASDAQ:RDVT) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Red Violet (NASDAQ:RDVT) from a "strong-buy" to a "hold," and other firms have trimmed ratings, leaving a consensus of "Moderate Buy" with a $62.00 price target.
• Despite the downgrade, Red Violet beat quarterly estimates (EPS $0.21 vs. $0.15; revenue $23.39M vs. $22.0M) and shows strong institutional backing (63.56% ownership) with significant stake increases by Royal Bank of Canada and Wasatch Advisors.

Red Violet (NASDAQ:RDVT - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

Several other equities research analysts have also recently commented on the company. Weiss Ratings cut Red Violet from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, February 9th. Wall Street Zen cut Red Violet from a "strong-buy" rating to a "buy" rating in a report on Friday, January 23rd. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $62.00.

Red Violet Trading Up 0.5%

RDVT opened at $40.42 on Monday. Red Violet has a twelve month low of $33.40 and a twelve month high of $64.14. The firm has a market capitalization of $570.33 million, a PE ratio of 44.91 and a beta of 1.71. The firm's 50-day moving average price is $39.35 and its 200 day moving average price is $47.32.

Red Violet (NASDAQ:RDVT - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The company reported $0.21 EPS for the quarter, beating analysts' consensus estimates of $0.15 by $0.06. The company had revenue of $23.39 million during the quarter, compared to the consensus estimate of $22.00 million. Red Violet had a net margin of 14.57% and a return on equity of 12.88%. As a group, analysts predict that Red Violet will post 1.03 earnings per share for the current fiscal year.

Institutional Trading of Red Violet

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Royal Bank of Canada lifted its holdings in Red Violet by 247.4% in the fourth quarter. Royal Bank of Canada now owns 282,480 shares of the company's stock valued at $16,088,000 after acquiring an additional 201,169 shares during the last quarter. Wasatch Advisors LP increased its stake in Red Violet by 13.8% during the first quarter. Wasatch Advisors LP now owns 911,636 shares of the company's stock worth $31,543,000 after acquiring an additional 110,421 shares during the last quarter. AQR Capital Management LLC purchased a new stake in Red Violet in the first quarter valued at $3,826,000. Millennium Management LLC raised its position in Red Violet by 195.4% in the third quarter. Millennium Management LLC now owns 99,273 shares of the company's stock valued at $5,187,000 after purchasing an additional 65,666 shares during the period. Finally, Marshall Wace LLP lifted its stake in shares of Red Violet by 60.9% in the 2nd quarter. Marshall Wace LLP now owns 152,738 shares of the company's stock valued at $7,515,000 after purchasing an additional 57,809 shares during the last quarter. Institutional investors and hedge funds own 63.56% of the company's stock.

About Red Violet

Red Violet, Inc NASDAQ: RDVT is a provider of advanced data, analytics and technology solutions designed to help organizations mitigate financial crime, fraud and security risks. The company’s cloud-native platform consolidates and enriches data from proprietary, public and third-party sources, applying artificial intelligence and machine learning to deliver insights across the risk-management lifecycle. Red Violet’s suite of services includes behavior-based transaction monitoring, automated watchlist and negative-news screening, enhanced due diligence and real-time geospatial threat intelligence.

Leveraging proprietary algorithms, Red Violet offers products that enable compliance teams to streamline anti-money laundering processes, improve fraud detection and respond swiftly to emerging threats.

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