Insider Activity Report: Red Violet (RDVT)

Paul Livek, a director at Red Violet (RDVT), recently added 4,900 shares. The buy increased his stake by 115 percent, and came to a total cost of $90,174.

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  • This is the first insider buy since last May, when a different director bought 2,000 shares, paying just under $49,000 to increase her stake by about 70 percent. Otherwise, a major holder sold 10,000 shares, netting about $250,000 for doing so.

    Overall, Red Violet insiders own about 33.7 percent of shares.

    The identity intelligence company is down about 25 percent over the last year. That’s despite a 5 percent increase in revenues and a massive 453 percent jump higher in earnings growth.

    Red Violet shares recently traded for about 20 times forward earnings. And the company has a strong balance sheet, with over 10 percent of the share price in cash, and nearly no debt.

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  • Action to take: While a smaller-cap company and more likely to be volatile, if strong growth continues, shares should trend higher over time. That could make for a small, speculative buy right now.

    Shares have been somewhat rangebound, and buying under $20 and selling over $20 could lead to repeat profits.

    For traders, the April $20 calls, last going for about $2.40, could see high-double-digit returns or better if shares move back to the higher end of their recent trading range.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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