Red Violet (NASDAQ:RDVT) Shares Up 6.3% on Earnings Beat

Key Points

• Red Violet shares rose 6.3% after the company reported quarterly EPS of $0.50, surpassing the $0.33 analyst consensus, while revenue of $26.72 million also exceeded estimates of $25.62 million.
• Analyst sentiment remains mixed but leans positive: the stock has a consensus “Moderate Buy” rating and a $71.50 target price, with B. Riley raising its target to $81 and Lake Street reaffirming a Buy rating.
• Insiders sold 46,000 shares worth approximately $2.64 million over the past 90 days, while institutional investors own 63.56% of the company; Red Violet has a market capitalization near $988 million and trades at a P/E ratio of 72.84.

Red Violet, Inc. (NASDAQ:RDVT - Get Free Report) shares were up 6.3% during trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $70.68 and last traded at $69.7850. 52,218 shares changed hands during trading, a decline of 66% from the average session volume of 154,822 shares. The stock had previously closed at $65.65.

The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.17. Red Violet had a return on equity of 14.30% and a net margin of 14.99%.The company had revenue of $26.72 million for the quarter, compared to analyst estimates of $25.62 million.

Analyst Upgrades and Downgrades

RDVT has been the topic of several research reports. Zacks Research lowered Red Violet from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 4th. Wall Street Zen downgraded Red Violet from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. B. Riley Financial boosted their price target on shares of Red Violet from $65.00 to $81.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Weiss Ratings reissued a "hold (c+)" rating on shares of Red Violet in a research report on Wednesday, August 5th. Finally, Lake Street Capital reissued a "buy" rating on shares of Red Violet in a research note on Tuesday. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $71.50.

Insider Activity

In other news, insider Jeffrey Alan Dell sold 10,000 shares of the firm's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $57.44, for a total value of $574,400.00. Following the sale, the insider directly owned 155,889 shares in the company, valued at approximately $8,954,264.16. This trade represents a 6.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Derek Dubner sold 12,000 shares of Red Violet stock in a transaction on Monday, June 1st. The stock was sold at an average price of $57.43, for a total transaction of $689,160.00. Following the sale, the chief executive officer directly owned 557,273 shares of the company's stock, valued at approximately $32,004,188.39. This trade represents a 2.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 46,000 shares of company stock worth $2,641,880 in the last ninety days. 8.90% of the stock is owned by insiders.

Institutional Trading of Red Violet

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its position in shares of Red Violet by 2.5% during the 4th quarter. Vanguard Group Inc. now owns 956,443 shares of the company's stock worth $54,469,000 after acquiring an additional 23,736 shares in the last quarter. BlackRock Inc. purchased a new position in Red Violet in the second quarter valued at approximately $60,582,000. Wasatch Advisors LP raised its holdings 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 purchasing an additional 110,421 shares in the last quarter. Ashford Capital Management Inc. lifted its position in shares of Red Violet by 13.9% during the 1st quarter. Ashford Capital Management Inc. now owns 686,816 shares of the company's stock worth $23,764,000 after buying an additional 83,998 shares during the last quarter. Finally, Ophir Asset Management Pty Ltd boosted its holdings in shares of Red Violet by 0.7% in the 4th quarter. Ophir Asset Management Pty Ltd now owns 638,598 shares of the company's stock valued at $36,368,000 after buying an additional 4,372 shares in the last quarter. 63.56% of the stock is owned by hedge funds and other institutional investors.

Red Violet Trading Up 6.5%

The firm's fifty day moving average price is $61.96 and its 200-day moving average price is $49.46. The firm has a market cap of $987.98 million, a price-to-earnings ratio of 72.84 and a beta of 1.82.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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