Latest news with #RDVT
Yahoo
4 days ago
- Business
- Yahoo
Red Violet, Inc. (RDVT): A Bull Case Theory
We came across a bullish thesis on Red Violet, Inc. (RDVT) on @WelfareCapLLC on X (Twitter). In this article, we will summarize the bulls' thesis on RDVT. Red Violet, Inc. (RDVT)'s share was trading at $49.28 as of 23rd May. RDVT's trailing P/E was 80.79 according to Yahoo Finance. An executive shaking hands with a customer as they seal a major Identity Verification Services deal. Red Violet (RDVT) is a high-conviction long idea in the data processing and identity verification space, with shares up 70% since the initial pitch in September. The company, with a $686 million market cap, offers data solutions to verticals such as law enforcement, collections, fraud prevention, corporate risk, and real estate. The management team—together for over two decades—built the core data products behind giants like TransUnion and LexisNexis, and has now created a superior, cloud-native platform that is taking market share rapidly. RDVT's advantage lies not just in data quantity, but in its ability to refine, link, and deliver high-throughput, accurate insights to customers. The company manages both proprietary and licensed datasets covering virtually every U.S. adult, including sensitive information like SSNs, addresses, and criminal records. Long-term, fixed-cost contracts for licensed data mean nearly every incremental dollar of revenue comes with extremely high margins. With over 70% of revenue contractually recurring and 96% gross retention, the business exhibits strong SaaS-like characteristics. RDVT is also seeing dramatic operating leverage, with Q1 operating margins rising 8 points to 19% and operating income growing 110% on 26% revenue growth. Despite trading at 80x TTM earnings, continued high earnings growth justifies the valuation. The company remains under-the-radar, with minimal analyst coverage and low trading volume, partly due to its Boca Raton location. However, a clean balance sheet, $34 million in cash, insider ownership, key talent acquisitions, and even a recent special dividend support a strong bull case. The stock remains a top 10% position with expectations of exceeding a $1 billion valuation. Red Violet, Inc. (RDVT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held RDVT at the end of the fourth quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of RDVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RDVT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Red Violet, Inc. (RDVT): A Bull Case Theory
We came across a bullish thesis on Red Violet, Inc. (RDVT) on @WelfareCapLLC on X (Twitter). In this article, we will summarize the bulls' thesis on RDVT. Red Violet, Inc. (RDVT)'s share was trading at $49.28 as of 23rd May. RDVT's trailing P/E was 80.79 according to Yahoo Finance. An executive shaking hands with a customer as they seal a major Identity Verification Services deal. Red Violet (RDVT) is a high-conviction long idea in the data processing and identity verification space, with shares up 70% since the initial pitch in September. The company, with a $686 million market cap, offers data solutions to verticals such as law enforcement, collections, fraud prevention, corporate risk, and real estate. The management team—together for over two decades—built the core data products behind giants like TransUnion and LexisNexis, and has now created a superior, cloud-native platform that is taking market share rapidly. RDVT's advantage lies not just in data quantity, but in its ability to refine, link, and deliver high-throughput, accurate insights to customers. The company manages both proprietary and licensed datasets covering virtually every U.S. adult, including sensitive information like SSNs, addresses, and criminal records. Long-term, fixed-cost contracts for licensed data mean nearly every incremental dollar of revenue comes with extremely high margins. With over 70% of revenue contractually recurring and 96% gross retention, the business exhibits strong SaaS-like characteristics. RDVT is also seeing dramatic operating leverage, with Q1 operating margins rising 8 points to 19% and operating income growing 110% on 26% revenue growth. Despite trading at 80x TTM earnings, continued high earnings growth justifies the valuation. The company remains under-the-radar, with minimal analyst coverage and low trading volume, partly due to its Boca Raton location. However, a clean balance sheet, $34 million in cash, insider ownership, key talent acquisitions, and even a recent special dividend support a strong bull case. The stock remains a top 10% position with expectations of exceeding a $1 billion valuation. Red Violet, Inc. (RDVT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held RDVT at the end of the fourth quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of RDVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RDVT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
16-05-2025
- Business
- Yahoo
Red Violet, Inc. (RDVT) Is Up 15.05% in One Week: What You Should Know
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Red Violet, Inc. (RDVT), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Red Violet, Inc. Currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> In order to see if RDVT is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up. Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. For RDVT, shares are up 15.05% over the past week while the Zacks Internet - Software and Services industry is up 5.33% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 33.96% compares favorably with the industry's 14.18% performance as well. While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Red Violet, Inc. Have increased 22.24% over the past quarter, and have gained 141.25% in the last year. In comparison, the S&P 500 has only moved -2.89% and 12.85%, respectively. Investors should also pay attention to RDVT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. RDVT is currently averaging 128,270 shares for the last 20 days. The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with RDVT. Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost RDVT's consensus estimate, increasing from $0.92 to $1.06 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period. Taking into account all of these elements, it should come as no surprise that RDVT is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Red Violet, Inc. On your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Violet, Inc. (RDVT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
