Red Violet (NASDAQ:RDVT) Stock Price Up 12.2% - What's Next?

Key Points

• 12.2% rally — RDVT jumped after Q1 results topped expectations, showing stronger-than-expected revenue and improved EPS, and investors are now parsing the earnings call for guidance and demand trends.
• Analyst sentiment is mixed — several firms recently trimmed ratings toward "hold," though MarketBeat's consensus remains a Moderate Buy with a $62 price target, which could limit near-term upside until models are updated.
• Technicals and valuation warrant caution — the stock trades above its 50‑day average but near the 200‑day, intraday volume was below its average on the move, and the company carries a market cap of about $693M with a P/E of ~54.6 amid broader software-sector volatility.

Red Violet, Inc. (NASDAQ:RDVT - Get Free Report) rose 12.2% on Thursday . The stock traded as high as $50.85 and last traded at $48.9330. Approximately 52,450 shares were traded during trading, a decline of 56% from the average daily volume of 118,632 shares. The stock had previously closed at $43.60.

Key Stories Impacting Red Violet

Here are the key news stories impacting Red Violet this week:

• Positive Sentiment: Q1 results beat consensus — Red Violet reported stronger-than-expected revenue and profit (quarterly revenue ~ $25.8M and EPS above estimates), signaling continued top-line growth and margin strength. red violet Announces First Quarter 2026 Financial Results
• Positive Sentiment: Reported EPS showed meaningful year-over-year improvement and beat analyst models (Zacks cites EPS of $0.46 vs. $0.33 a year ago), which supports upward revisions to near-term earnings expectations. Red Violet, Inc. (RDVT) Beats Q1 Earnings and Revenue Estimates
• Neutral Sentiment: Earnings call/transcript available — investors are parsing management commentary for guidance, demand trends and product cadence; read the full call transcripts for detail. Red Violet, Inc. (RDVT) Q1 2026 Earnings Call Transcript Red Violet (RDVT) Q1 2026 Earnings Transcript
• Neutral Sentiment: Market action shows elevated volume and renewed investor interest after the print; technicals are mixed with the stock trading above its 50‑day average but near the 200‑day level — momentum may persist while investors reassess estimates.
• Negative Sentiment: Analyst sentiment pulled back — Zacks downgraded RDVT from "strong-buy" to "hold," which could cap upside until analysts update models post‑earnings. Zacks Research downgrade
• Negative Sentiment: Broader software-sector weakness has pressured peers and contributed to recent volatility in the name, which could amplify downside on any future execution misses. Red Violet (RDVT) Fell due to Broad-Based Weakness Across The Software Sector

Wall Street Analyst Weigh In

RDVT has been the topic of several research analyst reports. Wall Street Zen cut shares of Red Violet from a "strong-buy" rating to a "buy" rating in a research report on Friday, January 23rd. Weiss Ratings cut shares of Red Violet from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, February 9th. Finally, Zacks Research cut shares of Red Violet from a "strong-buy" rating to a "hold" rating in a research report on Monday. Two equities research 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 price target of $62.00.

Red Violet Stock Performance

The business's 50 day simple moving average is $39.42 and its 200-day simple moving average is $47.25. The company has a market cap of $692.66 million, a price-to-earnings ratio of 54.55 and a beta of 1.71.

Red Violet (NASDAQ:RDVT - Get Free Report) last issued its earnings results on Wednesday, March 4th. The company reported $0.21 earnings per share (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 analyst estimates of $22.00 million. Red Violet had a net margin of 14.57% and a return on equity of 12.88%. Research analysts expect that Red Violet, Inc. will post 1.03 earnings per share for the current year.

Institutional Investors Weigh In On Red Violet

Institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC boosted its stake in shares of Red Violet by 414.3% during the 4th quarter. EverSource Wealth Advisors LLC now owns 468 shares of the company's stock valued at $27,000 after buying an additional 377 shares during the period. Caitong International Asset Management Co. Ltd lifted its stake in shares of Red Violet by 145.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 567 shares of the company's stock valued at $32,000 after purchasing an additional 336 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in shares of Red Violet in the 3rd quarter valued at $33,000. Tower Research Capital LLC TRC lifted its stake in shares of Red Violet by 160.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,032 shares of the company's stock valued at $51,000 after purchasing an additional 636 shares during the last quarter. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of Red Violet in the 4th quarter valued at $103,000. Institutional investors and hedge funds own 63.56% of the company's stock.

Red Violet Company Profile

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.