Some Red Violet, Inc. (NASDAQ:RDVT) shareholders may be a little concerned to see that the President, James Reilly, recently sold a substantial US$689k worth of stock at a price of US$57.43 per share. However, that sale only accounted for 6.3% of their holding, so arguably it doesn't say much about their conviction.

Red Violet Insider Transactions Over The Last Year

Notably, that recent sale by President James Reilly was not the only time they sold Red Violet shares this year. Earlier in the year, they fetched US$58.81 per share in a -US$868k sale. That means that an insider was selling shares at around the current price of US$54.09. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Red Violet insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Red Violet insiders own 8.6% of the company, worth about US$64m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Red Violet Tell Us?

Insiders sold Red Violet shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Red Violet is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Red Violet. For example - Red Violet has 1 warning sign we think you should be aware of.

But note: Red Violet may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.