SEC Filing Analysis: Red Violet, Inc. (RDVT)

Executive Summary

• Trading Significance: Low
• Key Takeaway: The Chief Financial Officer disposed of shares in a non-discretionary transaction to cover tax liabilities associated with vesting Restricted Stock Units (RSUs).
• Market Impact: The transaction is unlikely to have a material impact on the stock price as it is a routine, non-sentiment driven sale.

Company Information

Field	Value
Company	Red Violet, Inc.
Ticker Symbol	RDVT
CIK	0001720116
Industry	SERVICES-PREPACKAGED SOFTWARE [7372]

Insider Information

Field	Value
Name	MacLachlan Daniel
CIK	0001640723
Title/Position	Chief Financial Officer
Relationship	Officer

Transaction Details

Field	Value
Form Type	4
Transaction Date	2025-11-03
Transaction Code	F - Payment of tax liability by withholding securities
Security Type	Common Stock
Shares Involved	9,379
Price Per Share	$53.63
Total Value	$503,016.97
Shares Owned After	373,629
Ownership Type	Direct & Indirect

Financial Impact Assessment

Transaction Materiality

Metric	Value
Transaction Value	$503,016.97
% of Market Cap	0.067%
Shares Transacted	9,379
% of Shares Outstanding	0.067%
Post-Transaction Ownership	373,629 shares (2.67% of outstanding)
Materiality Assessment	Low

Impact Evaluation

• Market Cap Context: For a company with a market capitalization of $750 million, this $0.5 million transaction is immaterial, representing less than 0.1% of the company's value.
• Ownership Concentration: The CFO continues to hold a meaningful position of 2.67% of the company's outstanding shares after the transaction.
• Transaction Significance: The sale is classified as low significance. Both its value relative to market cap and the number of shares relative to the total outstanding are well below the thresholds for moderate or high significance. The nature of the transaction (tax withholding) further diminishes its importance as a market signal.

Market Impact Analysis

Stock Impact Prediction

• Direction: Neutral
• Reasoning: The transaction is a pre-planned, automatic disposition to cover taxes on vested equity awards, not a discretionary sale based on the insider's outlook for the company. Such transactions are common and typically do not influence market sentiment.

Volume & Sentiment

• Expected Volume Impact: Minimal. The trade size is too small to significantly affect trading volume.
• Sentiment Indicator: Neutral. This type of filing is informational and does not provide a bullish or bearish signal.

Additional Context

Transaction Notes

• Special Circumstances: As noted in footnote F1, the shares were disposed of to the issuer to satisfy tax obligations upon the vesting of RSUs from two separate grants. This is a common practice and not an open-market sale.