Red Violet (NASDAQ:RDVT) Issues Quarterly Earnings Results

Red Violet (NASDAQ:RDVT) released its quarterly earnings results on Wednesday. The company reported $0.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.04), Zacks reports. Red Violet had a return on equity of 16.12% and a net margin of 16.54%.

Here are the key takeaways from Red Violet’s conference call:

• Red Violet reported record third-quarter revenue of $27.8 million, up 20%, and adjusted EBITDA of $11 million, up 22%, with a 40% margin. Operating cash flow also reached a record $12.7 million, and trailing 12-month revenue exceeded $100 million.
• Growth was broad across customer groups and industries, with 383 new IDI billable customers and continued strength in financial services, background screening, law enforcement, and collections. Contractual revenue rose to 78% of the total, while gross revenue retention held at 96%.
• IDI’s real estate business declined at a high-single-digit rate year over year, and management expects softness to persist until housing market conditions improve. FOREWARN’s growth partly offset the weakness, with double-digit revenue growth and nearly 20,000 users added.
• The company plans to keep investing in its platform, AI, product development, and sales capacity while pursuing strategic acquisitions. It ended the quarter with $165.7 million in cash and U.S. Treasury investments and no debt, following an offering that generated about $109 million in net proceeds.

Red Violet Trading Up 0.5%

RDVT traded up $0.42 during trading hours on Wednesday, hitting $80.00. The company’s stock had a trading volume of 219,707 shares, compared to its average volume of 170,174. The business’s 50-day moving average price is $76.95 and its 200-day moving average price is $57.37. The stock has a market cap of $1.28 billion, a price-to-earnings ratio of 71.43 and a beta of 1.73. Red Violet has a 12 month low of $33.40 and a 12 month high of $83.15.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Needham & Company LLC assumed coverage on Red Violet in a research report on Tuesday, September 1st. They set a “buy” rating and a $90.00 price objective for the company. Weiss Ratings raised Red Violet from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, October 13th. B. Riley Financial increased their target price on Red Violet from $65.00 to $81.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Lake Street Capital upped their price target on shares of Red Violet from $62.00 to $73.00 and gave the company a “buy” rating in a research report on Tuesday, August 11th. Finally, Raymond James Financial initiated coverage on shares of Red Violet in a report on Thursday, September 17th. They issued an “outperform” rating and a $90.00 target price for the company. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Red Violet currently has a consensus rating of “Moderate Buy” and an average target price of $83.50.

Insider Activity

In related news, Director William Livek acquired 2,000 shares of the stock in a transaction dated Thursday, August 27th. The stock was acquired at an average cost of $71.49 per share, with a total value of $142,980.00. Following the purchase, the director directly owned 22,733 shares of the company’s stock, valued at approximately $1,625,182.17. This trade represents a 9.65% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 8.90% of the stock is owned by insiders.

Red Violet Company Profile

Red Violet, Inc (NASDAQ: RDVT) is a technology company that develops cloud-based identity intelligence and information solutions. Its platform helps organizations access, analyze and connect data to support investigations, risk management, fraud prevention, compliance and other decision-making activities.

The company’s products include idiCORE, an investigative and information services platform designed for users such as law enforcement agencies, government organizations, corporate security teams, insurance companies, financial institutions, collection agencies and other businesses.