Have Insiders Sold Red Violet, Inc. (NASDAQ:RDVT) Shares Recently?

Some Red Violet, Inc. (NASDAQ:RDVT) shareholders may be a little concerned to see that insider Michael Brauser recently sold a substantial US$3.5m worth of stock at a price of US$25.50 per share. However, that sale only accounted for 9.8% of their holding, so arguably it doesn't say much about their conviction.

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Red Violet Insider Transactions Over The Last Year

In fact, the recent sale by Michael Brauser was the biggest sale of Red Violet shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$24.85. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Red Violet

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Red Violet insiders own about US$55m worth of shares. That equates to 18% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Red Violet Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Red Violet and understanding it should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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