Exploring Red Violet, Inc. (RDVT) Investor Profile: Who’s Buying and Why?

You're looking at Red Violet, Inc. (RDVT) because the institutional money is clearly moving, and you want to know if their conviction is defintely worth following. The quick answer is that big players are betting on the company's ability to turn its data analytics platform into serious profit, but it's a nuanced story. As of the most recent filings, institutions own a commanding stake, sitting around 63.56% of the company, and they were rewarded with a roughly 67% one-year return on the stock as of late August 2025. We're seeing major shifts: while long-term holders like BlackRock, Inc. hold a large position, firms like Ophir Asset Management Pty Ltd. made a massive move in Q3 2025, increasing their stake by over 138%, adding hundreds of thousands of shares in a single quarter. Why the sudden rush? The Q3 2025 earnings report, released in November, showed total revenue jump 21% to $23.1 million, plus a stunning 145% increase in net income to $4.2 million, which tells you the business model is demonstrating real operating leverage. But still, you have to reconcile that with the insider selling we saw from the President in November 2025 at prices near $58.00 per share. So, is this a growth story with a few profit-taking bumps, or is the smart money quietly heading for the exit while institutions pile in?

Who Invests in Red Violet, Inc. (RDVT) and Why?

You're looking at Red Violet, Inc. (RDVT) and need to know who is driving the stock's action. The direct takeaway is that institutional investors dominate the ownership, holding a significant majority, and they are buying into a clear, profitable growth story in identity intelligence, not a deep-value play.

As of late 2025, institutional ownership sits around 63.56% of the shares outstanding, a figure that gives these large funds immense influence over the stock price and corporate strategy. This is a common pattern for high-growth tech firms with a scalable business model (a step-fixed cost model), but it also means the stock is highly sensitive to institutional trading actions. The general public, or retail investors, hold a smaller but still influential stake, roughly in the 19% to 27% range, while insiders maintain around 11.35% ownership.

The Institutional Heavyweights: Who's Buying

The investor profile for Red Violet is anchored by major asset managers who are typically long-term holders. These institutions aren't just buying; they're accumulating, which signals confidence in the company's core technology platform and its ability to execute. Here's a quick look at the top holders and their approximate positions as of the end of Q3 2025:

Here's the quick math: Vanguard and BlackRock, Inc. are primarily index and mutual fund behemoths, so their positions are often driven by Red Violet's inclusion in various small-cap growth indices, like the Russell 2000. Active managers like Wasatch Advisors, on the other hand, are making a direct, conviction-based bet on the company's growth trajectory. You see a mix of passive and active capital, but the overall trend is institutional accumulation.

Investment Motivations: The Growth and Margin Story

Investors are attracted to Red Violet, Inc. for two primary reasons: its aggressive growth prospects and its exceptionally high-margin, scalable business model. The company is not a dividend stock, though it did issue a one-time special dividend in 2025, but it is a clear-cut growth-at-a-reasonable-price (GARP) candidate for many.

• High Top-Line Growth: Management is targeting a 20% top-line growth rate, a compelling number in the information services sector.
• Record Financials: Q3 2025 revenue hit a record $23.1 million, a 21% year-over-year increase.
• Exceptional Profitability: The adjusted gross margin is projected to be in the 82% to 84% range for Q4 2025, which is incredible leverage.
• Strong Cash Generation: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached a record $9.0 million in Q3 2025, with a healthy 39% margin.

This financial profile tells you that Red Violet's cloud-native identity intelligence platform is highly efficient. The marginal cost of serving an additional customer is low, so once you win a new account, nearly all that new revenue drops to the gross profit line. That's what a scalable business looks like, and it's defintely what institutions are paying for.

Investment Strategies: Betting on Scalability

The strategies employed by Red Violet investors largely center on long-term growth and momentum, reflecting the company's status as a high-growth, small-cap technology play. You aren't seeing much traditional value investing here, as the trailing Price-to-Earnings (P/E) ratio is high at 68.47, indicating a premium for growth.

• Long-Term Growth Holding: Mutual funds and large institutions are holding for the long haul, betting on the company's expansion into new verticals like the public sector and background screening, and its continued investment in AI to enhance its data aggregation advantage.
• Momentum Trading: The stock has seen solid short-term price momentum, fueled by consistently beating earnings estimates, such as the Q3 2025 Adjusted EPS of $0.39 topping the consensus estimate of $0.32. This attracts investors who follow positive earnings revisions and short-term price trends.
• Capital Return Focus: The company's increased share repurchase program, up by $15 million in Q3 2025, appeals to investors who want to see excess cash flow returned to shareholders, a sign of a maturing, profitable business.

The key risk, as with any growth stock, is execution. If the company stumbles on its 20% growth target, or if a competitor challenges its data aggregation moat, the stock's premium valuation could quickly contract. For a deeper dive into the fundamentals that underpin these investment decisions, you should check out Breaking Down Red Violet, Inc. (RDVT) Financial Health: Key Insights for Investors.

Next step: Portfolio Manager: Compare RDVT's gross margin to its top three competitors by end of next week to confirm its competitive edge.

Institutional Ownership and Major Shareholders of Red Violet, Inc. (RDVT)

If you're looking at Red Violet, Inc. (RDVT), the first thing you need to know is that this is an institutionally-driven stock. With a significant portion of shares held by professional money managers, their collective action is what truly moves the needle. As of late 2025, institutional investors own approximately 72% of Red Violet's total shares outstanding, giving them immense influence over the company's direction and stock price.

Top Institutional Investors: Who Holds the Keys?

The investor profile for Red Violet is dominated by some of the largest asset managers in the world, the kind of firms that manage trillions of dollars. When these titans buy, it signals a strong belief in the company's long-term identity intelligence platform (cloud-native data analytics) strategy. Here's the quick math: the top 15 shareholders alone control about 51% of the company, meaning you need to track their moves defintely.

The largest holder is Vanguard Group Inc., which is typical for a stock with high institutional ownership, followed closely by Blackrock, Inc. and other specialized funds. You can see their conviction in the sheer size of their positions, which reflects a belief in Red Violet's ability to execute on its plan for organic growth and strategic mergers and acquisitions (M&A).

Recent Shifts: Are Institutions Buying or Selling?

The real insight comes from looking at the recent changes, which tell you if the smart money is doubling down or taking profits. For Red Violet, the picture is mixed, which is healthy-it shows a diversity of opinion, not a crowded trade. We saw a significant number of institutions making moves in the latter half of the 2025 fiscal year.

• Vanguard Group Inc. boosted its position by 4.2% as of November 7, 2025, a clear vote of confidence.
• Wasatch Advisors LP also increased its stake substantially, adding 10.413% as of September 30, 2025.
• Principal Financial Group Inc. made a massive move, increasing its position by a staggering +227.0% as of November 4, 2025, which suggests a new, strong conviction in the stock's near-term potential.
• Conversely, Blackrock, Inc. trimmed its position slightly by -0.562% in the third quarter of 2025, and Nantahala Capital Management LLC cut its stake by -19.2% earlier in May 2025.

When you see a large, established player like Principal Financial Group Inc. increase their holding by over 200%, you have to ask what they know. It usually points to a belief that the company is at an inflection point, likely tied to the record-breaking Q3 2025 results, which showed a 21% increase in revenue to $23.1 million.

Impact on Stock and Strategy: The Institutional Effect

The high concentration of institutional ownership means Red Violet's stock price is highly sensitive to their trading actions, so any major filing change can cause volatility. More importantly, their substantial holdings-up to 72%-give them a loud voice. This means the board and management, including CEO Derek Dubner, who holds a 3.6% stake, must align their strategy with institutional preferences.

For you, the investor, this means the company's strategic moves are already vetted by sophisticated capital. The announced increase in the Share Repurchase Program by $15 million and the filing of a $150 million shelf registration to explore potential acquisitions are not random. These actions are strategic signals to the institutional base, showing management is committed to capital allocation that drives shareholder value. The Q3 2025 Adjusted EBITDA of around $9 million and a focus on achieving 20% top-line growth provides the financial backbone for these aggressive, shareholder-friendly moves.

The big money is betting on the company's cloud-native platform and AI integration to continue driving growth, especially in the public sector and background screening verticals. If you want to dive deeper into the fundamentals that underpin this institutional confidence, I'd suggest reading Breaking Down Red Violet, Inc. (RDVT) Financial Health: Key Insights for Investors. Your next step should be to monitor the next round of 13F filings for Q4 2025 to see if this buying trend accelerates.

Key Investors and Their Impact on Red Violet, Inc. (RDVT)

You need to know who holds the power in Red Violet, Inc. (RDVT) because their trading actions directly influence the stock price. Institutional investors-the big money managers-own the majority of the company, with their collective stake hovering around 63.56% of the stock as of late 2025, which gives them significant sway over the company's direction.

This high concentration means the stock is sensitive to their decisions, so any large block trade can move the market. The top 13 to 15 shareholders alone control about 50% to 51% of the entire business, meaning a handful of firms essentially set the tone for the stock's volatility and valuation. This is a double-edged sword: their conviction provides a floor, but a sudden shift in sentiment could trigger a fast sell-off, a classic risk of a crowded trade.

Here's the quick math: with a market capitalization around $803 million in November 2025, a few key players are staking hundreds of millions on the company's identity intelligence platform.

The Major Players: Who Owns the Largest Stakes?

The investor profile for Red Violet, Inc. is dominated by large, well-known passive and active asset managers. These are not hedge funds pushing for dramatic operational changes (Schedule 13D filers), but rather large investment firms tracking indices or taking a long-term view (Schedule 13G and 13F filers).

The largest shareholders are giants in the asset management world, and their presence lends a certain credibility to Red Violet, Inc.'s valuation, which saw a one-year return of 67% leading up to August 2025. Their substantial holdings mean management must always consider their preferences, especially on capital allocation and strategic direction. You can get a deeper look into the company's fundamentals in Breaking Down Red Violet, Inc. (RDVT) Financial Health: Key Insights for Investors.

Based on Q3 2025 filings (September 30, 2025), here are the top institutional holders and their positions:

The table shows that even among the largest holders, there are different views. Vanguard Group Inc. and Wasatch Advisors Lp. were adding shares, which suggests confidence in the growth trajectory, while BlackRock, Inc. and Trigran Investments, Inc. were slightly trimming or holding steady.

Recent Investor and Insider Trading Signals

The most recent trading activity gives us a clear look at near-term sentiment. In Q2 2025, we saw a mix of firms initiating new positions and others significantly reducing their exposure. For example, Aviva PLC, a major global insurer, bought a new stake of 9,766 shares, valued at about $480,000. This kind of new money is a strong vote of confidence from a new institutional player.

On the other hand, the Q2 2025 data showed some major reductions, notably from Trigran Investments, Inc., which removed 582,875 shares from its portfolio, a massive 48.2% reduction. Brown Capital Management LLC also cut its position by 19.565% in Q3 2025. When a long-term holder cuts their position by that much, you defintely need to understand why-it signals a potential re-evaluation of the company's long-term growth story or valuation.

Another important signal is insider selling, which has been notable. In November 2025, CEO Derek Dubner sold 7,006 shares at an average price of $58.11 per share, a transaction totaling $407,118.66. The President and CFO also sold the same number of shares. While insiders still own a substantial stake (around 8.90% of the company), this selling is a key data point to track, especially when it follows a strong earnings beat of $0.39 EPS versus the expected $0.32 in Q3 2025. You want to see management buying, not selling, after a beat.

• Near-Term Opportunity: New institutional buying, like Ophir Asset Management's 138.662% increase in Q3 2025, suggests conviction in the company's AI-driven growth.
• Near-Term Risk: Significant insider selling, totaling 55,000 shares in the 90 days leading up to November 2025, raises questions about management's personal valuation outlook.

Your action here is to monitor the next round of 13F filings closely to see if the net institutional flow remains positive, especially after the recent insider sales. Finance: track Q4 2025 institutional ownership changes by February 15, 2026.

Market Impact and Investor Sentiment

The investor profile for Red Violet, Inc. (RDVT) is dominated by a strong, and currently positive, institutional presence. You can see this clearly in the ownership structure: institutions hold a substantial stake, around 72% of the company's shares as of late 2025. This means the board defintely pays close attention to their preferences, and their buying or selling drives the stock's movement.

The sentiment from these major shareholders is largely positive, especially after the company's strong financial performance in the third quarter of 2025. This positive outlook is not just a feeling; it's backed by significant capital moves. For instance, Vanguard Group Inc. increased its stake by over 4% in Q3 2025, holding 932,707 shares as of September 30, 2025. Plus, Ophir Asset Management Pty Ltd. showed extreme conviction, boosting their position by over 138% in the same quarter. That's a clear vote of confidence.

• Institutions own ~72% of shares.
• Vanguard Group Inc. increased holdings by over 4%.
• Ophir Asset Management Pty Ltd. increased holdings by over 138%.

Recent Market Reactions to Ownership Changes

The stock market has a direct, visible reaction to Red Violet, Inc.'s operational success, which in turn validates the institutional investment thesis. The most recent major move came on November 5, 2025, when the company announced its Q3 2025 financial results. The stock surged 4.5% in after-hours trading following the news of record revenue and net income. This is a classic market response: investors reward companies that deliver better-than-expected fundamentals.

Here's the quick math on why the market reacted so strongly: Q3 2025 revenue hit a record $23.1 million, up 21% year-over-year, and net income increased a massive 145% to $4.2 million. The company also announced an increase in its stock repurchase authorization by $15.0 million, bringing the total program to $30.0 million, a move that signals management believes the stock is undervalued. Still, keep in mind this stock has a beta (a measure of volatility) of 1.82, so while the upside is big, the downside risk is also magnified. For example, the stock saw a slight decline of 1.23% after a Q2 2025 earnings beat, suggesting that broader market sentiment can still override strong company performance.

Understanding the company's core strategy helps explain this performance. You can read more about their approach here: Mission Statement, Vision, & Core Values of Red Violet, Inc. (RDVT).

Analyst Perspectives on Key Investors' Impact

Wall Street analysts are overwhelmingly bullish, which reinforces the positive sentiment coming from major institutional holders like BlackRock, Inc. and Vanguard Group Inc. The consensus analyst rating is a 'Strong Buy,' and the average 12-month price target is set at $68.50 (as of November 2025), representing significant upside from recent trading levels. This high target reflects the view that the company's proprietary CORE data fusion platform and its expansion into new verticals are driving sustainable, high-margin growth.

The high institutional ownership is seen by analysts as a stabilizing force, but also a source of potential volatility. When a few large investors control such a large percentage of the stock, their collective buying or selling can move the price dramatically. The fact that the company's earnings estimates have been steadily rising-the Zacks Consensus Estimate for the fiscal year ending December 2025 increased by 11.8% over three months-is the key fundamental driver that keeps these big investors committed. Simply put, the institutions are buying into the company's ability to turn data into high-margin profit, and the analysts agree.

The bottom line is that the large institutional base is a powerful signal. It tells you that the smart money is betting on Red Violet, Inc.'s continued execution, especially given the Q3 2025 net income margin of 18% and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $9.0 million.